the examiner’s perspective - bsa...
TRANSCRIPT
The Examiner’s PerspectiveRegulatory Roundup
DisclaimerDisclaimer
The views and opinions expressed in this presentation are ours and do not represent the official position of therepresent the official position of the Federal Reserve Bank of Richmond or the Federal Reserve System.the Federal Reserve System.
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
ObjectivesObjectives
•Customer Due Diligence•Suspicious Activity Reports•Subpoena Review•Subpoena Review•MIS Testing•Risk AssessmentsRisk Assessments•Hot Topics
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
Customer Due DiligenceCustomer Due DiligencePurposePurpose
•Who is the customer?•What is the customer doing?•What is the customer doing?•Who is the customer dealing with?
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
Customer Due DiligenceCustomer Due Diligence
Process
•Gather the data•Analyze the data•Summarize the data•Document the resultsDocument the results
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
Customer Due DiligenceCustomer Due DiligenceCommercial Account Example•Signature cards•Statement analysis•Business/government references•Business/government references•Site visitation memo•Research resources
•Mantas•LexisNexis•World Check•Regulatory Data Corp•Google
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
Customer Due DiligenceCustomer Due DiligenceRetail Account Example•Signature cards•CIP informationL•Loan summary
•Front-line personnel memos•Statement•Social media
•Facebook•TwitterTwitter •Qzone•Habbo
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
Suspicious Activity ReportsSuspicious Activity ReportsObservations
•Data input v. outcome (charts)•Disclaimers and assumptionsp•Back-office SARs•Redundant information
•Branch address•Branch address•Customer account number and address
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
Subpoena ReviewSubpoena ReviewRelevance
•Who should review?•What should be reviewed?What should be reviewed?•Why is this important?
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
Question and Answer BreakQuestion and Answer Break
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
MIS TestingMIS TestingIdentify the Systems
•Core processor•Automated software•Ancillary vendors
•Equifax•OFAC•OFAC
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
MIS TestingMIS TestingIdentify the rulesy
•Cash•ChecksChecks•Wires•LoansACH•ACH
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
MIS TestingMIS TestingIdentify the workflowy
•Reporting from personnel to BSA/AML officer•Submission of audit reportp•Review and verification of alerts
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
MIS TestingMIS TestingTesting Part 1: Accuracy
Data mappingData integrityData integrity
Testing Part 2: Relevance
Relevance of the ruleEffectiveness of the ruleEffectiveness of the ruleLogic of the rule
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
Risk AssessmentsRisk AssessmentsPurposePurpose Identify the risk of:Money launderingy gTerrorist financingOFAC violationsFinancial crimesFinancial crimes
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
Risk AssessmentsRisk Assessments
Exam IssuesExam Issues
•Lack support and/or in-depth analysisN l t th hi h i k li t•No relevance to the high-risk list
•Inaccurate or missing elements
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
Risk AssessmentsRisk AssessmentsRisk Scoringg
•Automated risk-scoring software•Manual risk scoringManual risk scoring
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
Hot TopicsHot Topics
•Prepaid card regulation•Embassy accounts and PEPs •Internet gambling•Internet gambling•Human trafficking•SAR Tips, Trends & IssuesSAR Tips, Trends & Issues•Chapter X
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
QuestionsQuestions
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org
ContactsContacts
C l T i l t i @ i h f b 804/697 2732Carl Twigg, [email protected] 804/697-2732
Cara Homan, [email protected] 804/697-2627
Elaine Yancey, [email protected] 804/697-8313
BSA Coalition Anti-Money Laundering Conference June 28, 2011www.bsacoalition.org