Bank Secrecy Act & USA Patriot Act

Transcription

1 Bank Secrecy Act & USA Patrit Act Cmpliance Handbk Agent s Name Agent s Address City State Zip Cde Telephne N. Prvide by TRANSFAST as a training service fr its Agents 1

2 CONTENTS Intrductin 3 Applicable Laws and Regulatins 4 The Bank Secrecy Act File Identificatin Requirements 5 Surce f Funds 6 Requirements PAGE 5- Year Recrd Retentin The USA Patrit Act Adpt written plicies and prcedures Designate a Cmpliance Officer 7 Train Required Persnnel Independent Review Anti-Mney Laundering Law, 18 USC Stages f Anti-Mney Laundering Prhibitin f Unlicensed Mney Transmitting Business, 18 USC The Office f Freign Assets Cntrl (OFAC) Regulatins The Financial Crimes Enfrcement Netwrk (FinCEN) Regulatins IRS Title 31 Office inspectin rules Gramm-Leach-Bliley Act 10 Law Enfrcement Requests 2

3 Intrductin (The Agent) perates as an MSB (Mney Service Business) agent in the United States. T cmply with its legal bligatins, the AGENT has adpted this Cmpliance manual. Its wners have apprved this manual and mandate its applicatin by all emplyees, managers, fficers and directrs. Additinally, this manual explicitly mandates cmpliance with all plicies and prcedures required f the Agency by the BSA & the US Patrit Act. The principal bligatins f the Cmpany under the Bank Secrecy Act and the USA Patrit Act are: T establish an apprpriate anti-mney laundering prgram. T file a Currency Transactin Reprt ( CTR ) n Fin Cen Frm 104 with the Internal Revenue Service ( IRS ) fr cash transactins f mre than $10, (including cnsumer fees). It has t be filed within 15 days frm the time the transactin was generated. T file an SAR whenever we knw, suspect r have reasn t suspect: (a) that a transactin invlves funds derived frm illegal activity r is intended t hide r disguise funds derived frm illegal activity; (b) that a transactin is designated t evade any anti-mney laundering; r (c) the transactin has n business r apparent lawful purpse and yu knw f n reasn able explanatin fr the transactin after examining the available facts. An SAR must be filed within 30 days frm the time it is cnsidered suspicius. T keep a cpy f CTRs r SARs filed (and supprting dcuments) fr five years frm the date f filing. T cmply with OFAC regulatins. 3

4 Applicable Laws and Regulatins The Cmpany is subject t the legal prvisins f varius federal laws and regulatins including: The Bank Secrecy Act The USA Patrit Act Anti-Mney Laundering Law, 18 USC Ş 1956 Prhibitin f Unlicensed Mney Transmitting Business, 18 USC Ş 1960 The Office f Freign Assets Cntrl (OFAC) Regulatins The Financial Crimes Enfrcement Netwrk (Fin CEN) Regulatins IRS Title 31 Office inspectin Rules Gramm-Leach-Bliley Requirements The Bank Secrecy Act The Bank Secrecy Act (BSA) requires the cmpany t cmply with 3 specific bligatins: File Reprts Cash Transactin Reprts (CTRs) The cmpany must file CTR (Fin Cen Frm 104) as fllws: On cash transactins invlving mre than $10,000 in ne banking day (including service fees) On ne r mre transactins payable thrugh ne r mre crrespndent, s lng as they are related t the same persn Reprts must be filled-ut and filed within 15 days f transactin Regardless f whether a CTR is filed, all transactins are subject t SAR filing criteria Suspicius Activity Reprt The cmpany must file SARs as fllws: Mandatry fr all suspicius transactins invlving $2,000 r mre accrding t FinCEN. The Agency may file SARs n any suspicius transactin invlving less than $2,000. SARs must be filed within 30 days f discvery that a transactin is suspicius, 4

5 SARs must be filed when any ne f the fllwing ccurs: - Funds are suspected f being illegally derived; - Transactin is intended t hide illegal rigin r wnership f funds; - Transactin is intended t evade a legal requirement such as the ID requirement; - The transactin shws n apparent lawful business purpse; - Filling a SAR must remain cnfidential; the custmer invlved in any suspicius transactin is nt t be ntified f a SAR, this culd lead t five years f incarceratin Identificatin Requirements Certain remittances require senders t be psitively identified. Accrding t the BSA it is necessary the Agent t request ID Dcument fr transactins valued at 3000 USD r mre, ur internal plicy determines it has t be starting n r mre prvide prf f identificatin. Identificatin fr purpses f this manual means that the sender must prvide dcuments that can reliably establish the identity f the persn sending funds and where the persn resides at the time f the transactin. If a transactin is cnducted n behalf f a third party and is fr an amunt abve the identificatin threshld, the identifying infrmatin is required fr the persn presenting the transactin and the wner f the funds. Fr all transactins fr which senders are required t be identified, the Agency must keep a recrd f all infrmatin related t all transactins Acceptable Frms f ID - Alien Registratin Card -Driver s License -US Freign Passprt -State ID Card Issued by the MVA -Wrk Permit including SSN / TIN -Crew ID and I-95 -Freign Citizenship Card -Any Gvernment Issued ID 5

6 Surce f Funds Requirements What is a Surce f Funds? Is the legal evidence that the custmer needs t present and demnstrate that the transactin invlves funds legitimate rigins. Accrding t internal plicies, the minimum amunt fr which SOF is requested is: Acceptable Surce f Funds -Lan Dcuments -Bank Statements -Insurance Prceeds -Wire Transfer t MSB Bank Accunt -Cashier s Check -Pay Stubs / Tax Returns (after a cmpliance review & authrizatin) -Credit / Debit Card transactin including cpy f the receipt & the frnt and back f the card -Certificates frm Banks that supprt the remittance 5-Year Recrd Retentin The Agency is required t maintain all recrds fr five years (six years fr NY) frm the date f prcessing. Recrds subject t this requirement include cpies f receipts issued t and signed by clients. The USA Patrit Act The USA Patrit Act (the Patrit Act ) is the first law the U.S. Cngress passed after the September 11 attacks addressing mney laundering and terrrism financing risk. Signed int law n Octber 26, 2001, the Patrit Act requires the Cmpany t cmply with fur (4) basic requirements and ther assrted bligatins: Adpt written plicies and prcedures The Patrit Act requires the Cmpany t adpt written plicies and prcedures such as this dcument. The manual must prvide adequate cntrls t prevent laundering thrugh the Cmpany s facility. 6

7 Designate a Cmpliance Officer Federal law demands that an independent cmpliance fficer be designated. The law hwever des nt demand that the cmpliance fficer perfrm slely the functins f Cmpliance Officer. The Agency has determined that it can adequately address this requirement by designating the Cmpliance Officer respnsibilities t: The duties f the Cmpliance Officer will include, but are nt limited t ensuring that: 1. Plicies and prcedures are fllwed 2. Prper cmpliance training is given where required 3. Prper recrdkeeping as mandated by lcal regulatins 4. A Peridic Review is cnducted t verify the effectiveness f the Cmpliance Prgram 5. Updating the Cmpliance Prgram as necessary due t changes in laws r regulatins Train Required Persnnel The Agency is required t train its cmpliance staff as well as all ther emplyees, fficers and directrs cncerning the cmpliance principles applicable t the Agency. T implement this requirement, the Agency has instituted a plicy that it will train all f its emplyees as fllws: - All new hires will be trained prir t cmmencing wrk. Special attentin will be placed n training f all emplyees wh will deal directly with the public. - N later than yearly, each emplyee will underg refresher cmpliance training. Such training sessins will cver new legal and regulatry develpments that affect the Agency. - Whenever updates are required due t changes in laws r regulatins, infrmatinal materials will be prvided t all emplyees - Emplyees may be required t attend training sessins spnsred by the MSB, as service prvider, wh will cnduct such training fr the educatinal benefit f agents Independent Review The Agency recgnizes the need t review and update its cmpliance prgram. An Independent Examinatin f yur Agent is required by Federal AML Regulatins. The Independent Review will be cnducted by a persn r 7

8 persns wh are knwledgeable abut the AML requirements that apply t MSBs. The Agent's Independent Examinatin cannt be cnducted by yur designated Cmpliance Officer. The Agency will immediately implement any recmmendatin issued as a result f the Independent Examinatin. Anti-Mney Laundering Law, 18 USC 1956 The Anti-mney laundering Law prhibits the Agency frm prcessing funds that the cmpany knws r shuld knw are derived frm criminal activities. The Agent understands its bligatin nt t prcess any remittances it knws r suspects are derived frm illegal activities. The Agent will use all available resurces t determine that the rigin f all transactins prcessed is legitimate. The Agency nr any f its emplyees will becme willfully blind as t relevant matters cncerning the transactins. Willful Blindness applies when the Agency r its emplyee fails t ntice matters that wuld becme evident if they asked additinal questins and g further with a cmplete due diligence in rder t determine that: - Funds remitted riginate frm legitimate surces and will be used fr legitimate purpses - Transactins are nt being structured. That is, n transactin is brken dwn int smaller transactins t avid reprt filing r identificatin requirement f the Cmpany f law. - N pattern is develped by persns utilizing the Agency s system that shws ptential vilatin f the Bank Secrecy Act requirements Agency s Cmpliance Officer will implement all required cntrls t ensure that n emplyee r custmer breaks dwn transactins t be prcessed acrss mney transmitters t avid detectin f therwise reprtable criteria. Anti-Mney Laundering Stages: There are three stages t Mney Laundering: Placement, Layering, and Integratin Placement.- The placement stage represents the initial entry f the "dirty" cash r prceeds f crime int the financial system. Generally, this stage serves tw purpses: (a) it relieves the criminal f hlding and guarding large amunts f bulky f cash; and (b) it places the mney int the legitimate financial system. Layering.- The layering stage is the mst cmplex and ften entails the internatinal mvement f the funds. The primary purpse f this stage is t separate the illicit mney frm its surce. This is dne by the sphisticated layering f financial transactins that bscure the audit trail and sever the link with the riginal crime Integratin.- It is at the integratin stage where the mney is returned t the criminal frm what seem t be legitimate surces. Having been placed initially as cash and layered thrugh a number f financial transactins, the criminal prceeds are nw fully integrated int the financial system and can be used fr any purpse. 8

9 Prhibitin f Unlicensed Mney Transmitting Business, 18 USC 1960 Federal law 18 U.S.C frbids the Agency t perate as a mney transmitter withut a license in a state that requires such license r withut registering with the Financial Crimes Enfrcements Netwrk ( FINCEN ). In the United States all mney transmitters, nt agents such as the Agency, must register with Fin CEN and renew their registratin every tw years. The Agency will guard against vilating this law by specifically training all f its emplyees and infrming its managers, wners and directrs abut the need fr all transactins t be prcessed thrugh license hlders such as the Remittance Cmpany. The Office f Freign Assets Cntrl (OFAC) Regulatins All senders and receivers f remittance rders and remittance payments prcessed by the Cmpany must be cleared against the list issued by the Office f Freign Assets Cntrl ( OFAC ). T a great extent, the Cmpany will share with the Remittance Cmpany the bligatin t prevent OFAC-listed. The Agency understands that whenever a sender r receiver s name matches an OFAC listing, unless the Agency can prve thrugh dcuments that the detected name and the listed persn are nt ne and the same, then the Agency and the Remittance Cmpany have a mutual bligatin t blck the transactin. Blcking requires retaining the funds, placing the funds in a separate accunt, and ntifying OFAC n later than 10 days after the transactin is detected abut the detectin. The funds may nt be returned t the client nr paid t the intended beneficiary until OFAC allws t release the funds. The Financial Crimes Enfrcement Netwrk (Fin CEN) Regulatins Fin CEN, a Bureau f the U.S. Treasury Department issues regulatins f laws such as the BSA r the USA Patrit Act. Fin CEN regulatins, fr example requires the Agency t identify all remitters f transactins that exceed $2,500 and t file CTRs n transactins that exceed $10,000. IRS Title 31 Office inspectin rules In additin t rules issued by Fin CEN, at the federal level the Agency is als subject t the inspectin requirements f the IRS Title 31 Office. Pursuant t authrity issued t them, the IRS Title 31 Crdinatrs may visit the Agency and audit the Agency s cmpliance with any f the applicable federal laws delineated in this cmpliance handbk. Pursuant t their audit authrity, the IRS Title 31 crdinatrs may request cpies f any 9

10 cmpliance dcument, including, cmpliance handbk, cmpliance training r any ther matter impacting n the cmpliance bligatins f the cmpany. The results btained by IRS must be shared and prvided with the Remittance Cmpany with which effected remittances. Gramm-Leach-Bliley Act The Gramm-Leach-Bliley Act requires the Agency t adpt and apply a plicy t prtect all persnal, n-public infrmatin prvided by clients t facilitate the prcessing f remittances. The Agency, will nt share any infrmatin prvided by clients ther than as prvided by applicable law. In furtherance f that plicy the Agency will take all cmmercially reasnable measures t prtect the disclsure f any infrmatin in cntraventin f the legal requirements arising frm the Gramm-Leach-Bliley Act. Law Enfrcement Requests Gvernment regulatrs and law enfrcement agencies may seek infrmatin and recrds frm time t time. Any persn assciated r cnnected with ur cmpany, including agents, wh receives r is served with a summns, subpena r curt rder related t Trans-Fast business shuld immediately cntact the Trans-Fast Cmpliance Department fr further assistance. The cmpany will assist these entities in their investigatins, prvided the request(s) is / are cnducted in a lawful manner. This is necessary t ensure that the cmpany cmplies with custmer privacy laws. Furthermre, gvernment agents are nt permitted t use their summns authrity t g n unwarranted fishing expeditins in ur recrds. Agents shuld nt feel pressured by gvernment agents t release cnsumer r cmpany infrmatin withut first receiving a prper summns, subpena r curt rder. Any persn subpenaed r asked t disclse a SAR-MSB r the infrmatin cntained in it, except where the request is by an apprpriate law enfrcement r supervisry agency, must nt prduce the SAR-MSB r prvide any infrmatin that wuld disclse that a SAR-MSB has been prepared r filed. Cite 31 USC 5318(g) (2) and 31 CFR (d) as supprt fr nt respnding t such a request. In additin, the Financial Crimes Enfrcement Netwrk (Fin CEN) shuld be ntified immediately f any such request. 10