All in BSA

Reminder to Watch for New SAR Form

Adam Witmer
BSA, Regulatory Update

As we explained several months back, FinCEN announced in January that they would be revising the SAR form in June of 2018.  As of today, that revision has not yet been released, so Financial Institutions are reminded that they should expect a new SAR form to be released within the next few days. The planned revision is the first change to v1.1 of the original electronic-only SAR form that was implemented a few years back.  Based on the proposed revisions, it appears that all…

FinCEN Advisory on Corrupt PEPs

Adam Witmer
BSA, Regulatory Update

This week, on June 12, 2018, the Financial Crimes Enforcement Network (FinCEN) issued an advisory on human rights abuses enabled by corrupt senior foreign political figures - also known as Politically Exposed Persons (PEPs) - and their financial facilitators.  In their 15-page advisory, FIN-2018-A003, FinCEN explains that high-level political corruption “undermines democratic institutions and public trust, damages economic growth, and fosters a climate where financial crime and other forms of lawlessness can thrive.” FinCEN also explains that corrupt senior foreign political figures can also contribute directly and indirectly to human rights abuses.  Therefore, FinCEN has issued this guidance to, among other things, help financial institutions identify “red flags” for suspicious activity in relationship to senior foreign political figures.  The advisory also provides guidance for filing SARs on PEPs. (Read more.)

BSA Statement of Loan Purpose

BSA Statement of Loan Purpose

Adam Witmer
BSA

In this video, Adam discusses the BSA record retention requirements for obtaining a clear statement of purpose on certain loans. Adam explains the requirement in detail including which loans the rule applies to, common errors, and best practices to ensure compliance.

CIP Requirements for Business Account Signers

Adam Witmer
BSA

CIP requirements for business account signers can be a confusing subject for some.  While it would seem natural to require CIP for anyone opening an account, that isn’t technically what the rules require, especially when it comes to business accounts.  Therefore, let’s take a deep dive into the CIP requirements and how they apply to business account signers.

BSA Requirements for Privately Owned ATMs

Adam Witmer
BSA

Privately owned ATMs - i.e. ATMs that are not owned by a bank - is a topic that seems to be gaining traction with examiners during BSA exams.  Therefore, it is important for financial institutions to understand their requirements in regards to customers who operate privately owned ATMs. This article takes a look at what is a privately owned ATM is, what risks are associated with them, and how financial institutions can manage privately owned ATM relationships.

FinCEN Delays UBO Requirements for Automatic Renewals

Adam Witmer
BSA, Regulatory Update

On May 16, 2018 - just five days after the new customer due diligence (CDD) rules requiring the identification and verification of ultimate beneficial owners (UBOs) went into effect - FinCEN issued a temporary ruling that delays parts of the new requirements for financial institutions.  FinCEN’s ruling, known as FIN-2018-R002, provides a 90-day limited exception for financial institutions in regards to products and services that automatically rollover or renew, such as loan accounts and certificates of deposit (CDs), that were established before the May 11, 2018 deadline for the new rules.

How BSA Rules Apply to School Corporations: CIP, CTRs, & CDD

Adam Witmer
BSA

Years ago as a new BSA Officer, I received a call from one of our branch managers who had a customer at their desk and was needing my immediate input.  The branch manager told me that the person trying to open a new deposit account with us was refusing to provider her social security number and driver’s licence information (the info our CIP policy required) as she was told that the account was exempt and she didn’t need to provide it.  I asked her what type of company was opening the account and she responded by saying that it was a school.

Exam Procedures for Ultimate Beneficial Ownership Rules

Adam Witmer
BSA, Regulatory Update

On May 11, 2018, the FFIEC released new examination procedures for the recent “Customer Due Diligence Requirements for Financial Institutions.”  These procedures are intended to be utilized by each regulatory agency - meaning they apply to all banks, savings and loans, savings associations, and credit unions - and will be a part of a financial institution’s BSA examination.  These new procedures replace the prior procedures and financial institutions should expect examiners to utilize them in the near future.

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