What are the BSA/AML regulations?
There are numerous US legislations which cover Anti-Money Laundering (AML), with the Banking Secrecy Act (BSA) at the core and then several other subsequent laws up to and including the PATRIOT Act. This suite of AML legislation covers a wide range of financial institutions ranging from banks, credit unions, non-bank financial institutions, securities/broker dealers, money services businesses (MSB), depository institutions, insurance c and many other businesses- even casinos in some cases.
What does BSA?AML compliance look like?
BSA/AML regulations require all affected organizations to record/report on a range of activities, including cash transactions exceeding $10,000, cash purchases of negotiable instruments, and other activity that might indicate money laundering, tax evasion or other criminal activity. To achieve and maintain compliance, it is necessary to have robust Customer Identification Program (CIP)/Know Your Customer (KYC) and Customer/Enhanced Due Diligence (CDD/EDD) programs as appropriate, as well as proper transaction monitoring systems and effective and properly documented case management, reporting and retention processes.
An effective BSA/AML compliance program is generally risk-based/assessed- i.e. the level and types of controls should be appropriate to the nature, locations and size of the business. The internal controls should be fully documented in policies and procedures, implemented and followed in practice on a day to day basis with clearly defined and owned responsibilities, and reviewed regularly to verify ongoing appropriateness and sufficiency.
Compliance also involves having a designated BSA/AML compliance officer who is sufficiently expert in the regulations so that they can create, implement and maintain a fully effective BSA/AML compliance program as well as ensuring the right personnel at all levels of the organization have the appropriate training. Moreover, the program should also be independently audited on a regular, risk-based basis, at least every 12 to 18 months and sometime more frequently.
How can Pointe Solutions help you with your BSA/AML compliance?
Given all the steps required to be complaint, it is understandable that companies of all sizes can find establishing, maintaining and proving BSA/AML compliance a challenge. The Pointe Solutions AML team are here to help guide you through the complexities and provide the expertise you need. Not only can we provide full external, independent audit services, we can offer a full suite of services ranging from initial program set up and documentation, through to gap analyses and even full role outsourcing if required. Everything we do is to give you peace of mind that your program is compliant, cost efficient and truly effective, so contact us today to find out more about how we can help you.