Regulations Page

Project Name: Bank Secrecy Act (BSA)

Total Pages: 350

Federal Register Rule Updates:

Document Name Publication Date Effective Date Type Agency Document Number Document Citation Pages
Bank Secrecy Act (BSA) Oct 26, 2010 Mar 1, 2011 Final rule. Financial Crimes Enforcement Network 184
Amendment to the Bank Secrecy Act Regulations-Reports of Foreign Financial Accounts Feb 24, 2011 Mar 28, 2011 Final rule. Treasury Department,Financial Crimes Enforcement Network 76 FR 10234 13
Bank Secrecy Act Regulations; Definitions and Other Regulations Relating to Money Services Businesses Jul 21, 2011 Jan 23, 2012 Final rule. Treasury Department,Financial Crimes Enforcement Network 76 FR 43585 13
Bank Secrecy Act Regulations-Definitions and Other Regulations Relating to Prepaid Access Jul 21, 2011 Jan 29, 2012 Final rule. Treasury Department,Financial Crimes Enforcement Network 76 FR 45403 18
Anti-Money Laundering Program and Suspicious Activity Report Filing Requirements for Residential Mortgage Lenders and Originators Feb 12, 2012 Apr 16, 2012 Final rule. Treasury Department,Financial Crimes Enforcement Network 77 FR 8148 13
Amendment to the Bank Secrecy Act Regulations-Requirement That Clerks of Court Report Certain Currency Transactions Jun 7, 2012 Jul 9, 2012 Final rule. Treasury Department,Financial Crimes Enforcement Network 77 FR 33635 3
Definitions of Transmittal of Funds and Funds Transfer Dec 4, 2013 Jan 3, 2014 Final rule. Treasury Department,Financial Crimes Enforcement Network 78 FR 72813 5
Anti-Money Laundering Program and Suspicious Activity Report Filing Requirements for Housing Government Sponsored Enterprises Feb 25, 2014 Apr 28, 2014 Final rule. Treasury Department,Financial Crimes Enforcement Network 79 FR 10365 13
Anti-Money Laundering Program and Suspicious Activity Report Filing Requirements for Registered Investment Advisers Sep 1, 2015 Nov 2, 2015 Notice of proposed rulemaking. Treasury Department,Financial Crimes Enforcement Network 80 FR 52680 22
Customer Due Diligence Requirements for Financial Institutions May 11, 2016 Jul 11, 2016 Final rules. Treasury Department,Financial Crimes Enforcement Network 81 FR 29397 62
Civil Monetary Penalty Adjustment and Table Jun 30, 2016 Aug 1, 2016 Interim final rule. Treasury Department,Financial Crimes Enforcement Network 81 FR 42503 4

 

Best Practices to implement a winning Compliance Program

The process for an effective compliance implementation has 8 simple steps:

1. RESEARCH

Review, research & understand the requirements

2. ASSESS

Analyze operations & determine your compliance

3. GAP ANALYSIS

Identify & document gaps & remediation plans

4. VALIDATE

Validate the changes (Initial & ongoing validations)

5. RESEARCH

Review, research & understand the requirements

6. TRAINING

Train the staff (Rule requirements & operations)

7. DOCUMENT

Prepare evidentiary material to document your compliance

8. DEMONSTRATE

Demonstrate compliance to audit, regulators

 

Implement a winning Compliance program using Compliance Delivery Platform:

To implement a winning compliance project for Bank Secrecy Act (BSA), the regulated firm can use the BCube's Compliance Delivery Platform (CDP) to streamline their process and improve their results.

With the CDP's C-INTAKE, any regulation published in the Federal Register is structured at the section level, linked to supporting information and delivered through a simple user interface.

With single view screens to navigate through the information needed to evaluate the rule's requirements, you can develop compliant solution and create a best practice Gap Analysis using the C-GAP Manager. It even streamlines the process to execute a 3 lines of defense validation framework with built-in communication interfaces, audit trail and section specific access and approval controls.

 

Project Surveys

A project survey is available for each CDP project, and can be purchased separately as a standalone without the C-Gap Manager. The survey can be customized to include your specific requirements and are based on the individual requirements in the regulation. Each survey is designed to help you quickly evaluate your compliance to a rule and provides a draft current state and suggested pillar level gaps. If purchased with the C-Gap Manager, once you are satisfied with the results of the survey, it can be automatically uploaded into the project's gap analysis. This will save you an estimated 2 to 3 hours per rule requirement and can easily return many times the cost of the subscription in time and effort.

Keys to the "Bank Secrecy Act (BSA)"

Regulatory Update (Publication Date: 05/11/2016; Effective Date: 07/11/2016)

The New FinCEN, AML Customer Due Diligence rule requires that your organization determine the Beneficial Owner(s) and at least One person who has “significant responsibility” for the managing the legal entity, whenever a person opens an account for a legal entity for any new account.  A beneficial Owner is defined as one who has at least 25% direct or indirect ownership of a legal entity.

This rule requires any person opening an account, at a bank, credit union, broker or dealer in securities, a mutual fund, future commissions merchant, for a legal entity complete an appropriate form. It is intended to provide one of the four elements that the FinCEN identified as four core elements of customer due diligence (CDD). Explicit requirements in the anti-money laundering (AML) program include:

  1. Customer identification and verification.
  2. Beneficial ownership identification and verification.
  3. Understanding the nature and purpose of customer relationships to develop a customer risk profile.
  4. Ongoing monitoring for reporting suspicious transactions and, on a risk-basis, maintaining and updating customer information.

Financial institutions must conduct monitoring to identify and report suspicious transactions. Transactions that are not normally expected given a customer’s risk profile are used to identify such transactions. When a financial institution detects information (including a change in beneficial ownership information) about the customer in the course of its normal monitoring that is relevant to assessing or reevaluating the risk posed by the customer, it must update the customer information, including beneficial ownership information. This applies to all legal entity customers, including those existing on the Applicability Date. This provision does not impose a categorical requirement that financial institutions must update customer information, including beneficial ownership information, on a continuous or periodic basis. Rather, the updating requirement is event-driven, and occurs as a result of normal monitoring.

The rule was published on May 11, 2016 and is effective July 11, 2016 but institutions must comply by May 11, 2018.

The recent regulatory update titled Customer Due Diligence was published in the Federal Register on 05/11/2016. It is effective July 11, 2016 but institutions must comply by May 11, 2018. It is now available in this project and the following section have changes: 

  • 31 CFR 1010.230
  • 31 CFR 1020.210
  • 31 CFR 1023.210
  • 31 CFR 1024.210
  • 31 CFR 1026.210

Please read our latest blog additonal updates.

Simplified Keys to the BSA/AML project

The Part number in the regulation corresponds to a specific Business Unit and Section number corresponds to the AML Element. For example Part 1010.210 is the general AML template, Part 1020 relates to AML for certain financial institutions as shown in the chart below. 
NAVIGATING to a specific Part Number is simple with the bCube Advantage. Simply display the project navigator and click on the desired part. The project navigator also allows you to quickly access and cross reference similar section numbers across Part Numbers so that you can gain visibility over the entire spectrum of your business lines.

Part# / Section# Business Unit
1010.210 Exempted anti-money laundering programs for certain financial institutions
1020.210 Anti-money laundering program requirements for financial institutions regulated only by a Federal functional regulator, including banks, savings associations, and credit unions
1021.210 Anti-money laundering program requirements for casinos
1022.210 Anti-money laundering programs for money services businesses.
1023.210 Anti-money laundering program requirements for brokers or dealers in securities
1024.210 Anti-money laundering programs for mutual funds
1025.210 Anti-money laundering programs for insurance companies
1026.210 Anti-money laundering program requirements for futures commission merchants and introducing brokers in commodities
1027.210 Anti-money laundering programs for dealers in precious metals, precious stones, or jewels
1028.210 Anti-money laundering programs for operators of credit card systems
1029.210 Anti-money laundering programs for loan or finance companies

Sections numbers relate to a specific AML topic. For Example a Section 320 applies to Reports of Suspicious Transactions. In part 1022 section 320 provides the requirements for the SAR specifically for “Money Service Businesses. In part 1024 section 320 provides the requirements for the SAR specifically for "Mutual Funds". 
The bCube Navigators allow you to access any specific section in 1 click. Accessing similar sections across different business units is also easy simply select the appropriate Part and then click on the specific section. Refer to the table below to review the specific section numbers in the AML program to be implemented, to determine the specific topic. Note the bCube Advantage can also provide reporting across Parts numbers for a specific section. For example selecting section 306 for the various Parts for each of your business lines would show the status of your Report Filings (the section 306 topic) across your organization.

Part 1010 the General Section for AML is depicted the section number appears after the ".".

Section Number Title
1010.100 General definitions.
1010.200 General.
1010.205 Exempted anti-money laundering programs for certain financial institutions.
1010.210 Anti-money laundering programs.
1010.220 Customer identification program requirements.
1010.300 General.
1010.230 Beneficial ownership requirements for legal entity customers.
1010.301 Determination by the Secretary.
1010.306 Filing of reports.
1010.310 Reports of transactions in currency.
1010.311 Filing obligations for reports of transactions in currency.
1010.312 Identification required.
1010.313 Aggregation.
1010.314 Structured transactions.
1010.315 Exemptions for non-bank financial institutions.
1010.320 Reports of suspicious transactions.
1010.330 Reports relating to currency in excess of $10,000 received in a trade or business.
1010.340 Reports of transportation of currency or monetary instruments.
1010.350 Reports of foreign financial accounts.
1010.360 Reports of transactions with foreign financial agencies.
1010.370 Reports of certain domestic coin and currency transactions.
1010.400 General.
1010.401 Determination by the Secretary.
1010.410 Records to be made and retained by financial institutions.
1010.415 Purchases of bank checks and drafts, cashier's checks, money orders and traveler's checks.
1010.420 Records to be made and retained by persons having financial interests in foreign financial accounts.
1010.430 Nature of records and retention period.
1010.440 Person outside the United States.
1010.500 General.
1010.505 Definitions.
1010.520 Information sharing between government agencies and financial institutions.
1010.540 Voluntary information sharing among financial institutions.
1010.600 General.
1010.605 Definitions.
1010.610 Due diligence programs for correspondent accounts for foreign fin institutions.
1010.620 Due diligence programs for private banking accounts.
1010.630 Prohibition on correspondent accounts for foreign shell banks; records concerning owners of foreign banks and agents for service of legal process.
1010.651 Special measures against Burma.
1010.652 Special measures against Myanmar Mayflower Bank and Asia Wealth Bank.
1010.653 Special measures against Commercial Bank of Syria.
1010.654 Special measures against VEF Bank.
1010.655 Special measures against Banco Delta Asia.
1010.670 Summons/subpoena foreign bank records; End correspondent relationship.
1010.710 Submitting requests.
1010.711 Scope.
1010.712 Nonconforming requests.
1010.713 Oral communications.
1010.714 Withdrawing requests.
1010.715 Issuing rulings.
1010.716 Modifying or rescinding rulings.
1010.717 Disclosing information.
1010.810 Enforcement.
1010.820 Civil penalty.
1010.830 Forfeiture of currency or monetary instruments.
1010.840 Criminal penalty.
1010.850 Enforcement authority for transport of currency or monetary instruments.
1010.911 General.
1010.912 Persons who may issue summons.
1010.913 Contents of summons.
1010.914 Service of summons.
1010.915 Examination of witnesses and records.
1010.916 Enforcement of summons.
1010.917 Payment of expenses.
1010.920 Access to records.
1010.930 Rewards for informants.
1010.940 Photographic or other reproductions of Government obligations.
1010.950 Availability of information.
1010.960 Disclosure.
1010.970 Exceptions, exemptions, and reports.
1010.980 Dollars as including foreign currency.

 

So, the question is "Can you afford not to have the BCube Compliance Delivery Platform content solutions?"

 

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