Bank Secrecy Act OFAC FinCEN

Transcription

1 Bank Secrecy Act OFAC FinCEN 2017 CREDIT UNION VOLUNTEER TRAINING Financial Crimes Identify Track Report Common BSA Acronyms CIP CDD CTR SAR FinCEN OFAC Customer Identification Program Customer Due Diligence Currency Transaction Report Suspicious Activity Report Financial Crimes Enforcement Network Office of Foreign Assets Control 1

2 Culture of Compliance Everyone plays a role It s a Team Effort BSA Policy and Risk Assessment is the foundation Outlines the BSA compliance program requirement Assists with establishing procedures Enforcement orders all relate to the failure of documenting or implementing the written BSA compliance program Provide access to and go over policy requirements HIDTA In Southeast 2

3 Required BSA Elements BSA Officer Board Approved Independent Testing Volunteers and Staff FinCEN adds 5 th Pillar CDD Customer Due Diligence OFAC Compliance New accounts Joint owners Beneficiaries 3 rd party wires All members on a regular basis IAT 3

4 FinCEN Update: Treasury Acts to Increase Economic Pressure on North Korea and Protect the U.S. Financial System June 29, 2017 Currency Transaction Report $10,000+ Cash Deposits Withdrawals Cash Exchanges 15 days to file Include joint owners on deposits Suspicious Activity Reports BSA Violations Money Laundering Structuring Source of Funds Illegal Activities Fraud Kiting Counterfeit Instruments Member is a Victim Scams Identity Theft Elder Abuse 4

5 Suspicious Activity Report Thresholds Financial Institutions are required to file a SAR for: Criminal violation involving insider abuse in any amount Criminal violations aggregating $5,000 or more when a suspect can be identified Criminal violation aggregating $25,000 or more regardless of a potential suspect SAR Information Is Confidential Penalties for Disclosing a SAR Individuals Civil max $100,000 Criminal max $250,000 and/or five years in prison Credit Union $25,000 per day for each day the violation continues 5

6 SAR Reminders Report to Board File within 30 days of suspicious activity. Re-file every 90 days Member considered high risk. Monitor account for 90 days Support documentation must be kept for 5 years Contact Law Enforcement if SAR activity continues Money Mule Operations are Increasing 6

7 Suspicious Phishing Attacks are Increasing Attempt to acquire information by masquerading as a trustworthy entity Recipients are enticed to click on an imbedded link or open an attachment Typically distributes malware User names, passwords, credit/debit card details Captures banking login info and transfers funds out of account You Have a Secret Bank Account Here s how to Use It Every American has a secret account at the Federal Reserve Bank Instruct naïve consumers how to pay their bills, using routing numbers, account number Report any incidences to RTN.fraud@ny.frb.org 7

8 Looking to buy a new car? Do I have the deal for you! Sweetheart Scam Elder Financial Abuse Fastest Growing Crime of the 21 st Century - $36 Billion Taking money or property Using coercion to sign legal documents Using property or possessions without permission Confidence games 8

9 Typical Victim of Elder Abuse Female Age Frail Cognitively Impaired Federal Reserve Consumer Compliance Outlook Newsletter Internal Testing outside of your BSA Audit Issues noted in the last exam have they been addressed? Has FinCEN communicated with your credit union regarding SARS? Were account ID verification and OFAC completed on new members? Were SARs filed when suspicious activity was reported? If no SAR filed, was the decision-making process followed? Were FinCEN 314(a) searches conducted every two weeks? Were large currency transactions referred for investigation? Are reports being reviewed? 10 Most Common Audit Findings Properly identifying MSB RSSD numbers are missing from CTRs and SARs Relying on 3 rd parties to conduct OFAC checks Policy refers to procedures that don t exist No procedure to identify when a member is no longer high risk Annual BSA training not completed OFAC checks not documented FinCEN 314(a) not being reviewed SARs not reported to Board BSA Policies not reviewed and approved by the board annually 9

10 Board of Directors Credit Union Staff Supervisory Comm Approve policies Appoint BSA Officer Receive SAR Report Review BSA Audit Update policies & risk assessment File BSA reports Monitor accounts Schedule training Schedule BSA audit Follow up on action items Ensure action items corrected Cheryl Oggs, BSACS Vice President Mississippi Credit Union Association ext Direct 10