This policy is effective 25-Nov-2019 and may be amended from time to time.
The purpose of this policy is to maintain maximum compliance with the Bank Secrecy Act (BSA), its amendments, laws, and regulations.
The Chief Compliance Officer is designated as the BSA and Office of Foreign Assets Control (OFAC) Compliance Officer. The BSA Compliance Officer is responsible for coordinating and monitoring day-to-day BSA compliance and managing all aspects of the BSA compliance program including but not limited to adherence of BSA and its implementing regulations.
The Board of Directors will be ultimately responsible for the financial institution’s BSA compliance and will ensure that the BSA Compliance Officer has sufficient authority and resources (monetary, physical and personnel) to administer an effective risk-based BSA compliance program.
The BSA Compliance Program Will:
- Implement a system of internal controls to assure ongoing compliance;
- Provide for independent testing for compliance concerning the BSA/AML program at least annually. The annual audit is to be completed by outside auditors or consultants or internally by qualified persons who are not involved in the function being tested;
- Provide periodic training to all appropriate personnel. The training will be tailored to the person’s specific responsibilities for BSA; and,
- Implement a Customer Identification Program (CIP) that will verify the identity of any person seeking to open an account; maintain records of the information used to verify a person’s identity, including name, date of birth, address and taxpayer identification number and review lists of known or suspected terrorists or terrorist organizations provided to the financial institution by any government agency to determine whether a person seeking to open an account appears on any such list.
- Implement a Customer Due Diligence (CDD) Program inclusive of appropriate risk-based procedures for conducting ongoing customer due diligence.
The System of Internal Controls Should Include But Is Not Limited To:
- Perform a BSA Risk Assessment by identifying the financial institution’s operations (products, services, customers, and geographic locations) more vulnerable to abuse by money launderers and criminals; provide for periodic updates to the financial institution’s risk profile; and, provide for a BSA/Anti-Money Laundering (AML) compliance program tailored to manage risks.
- Inform the Board of Directors or a committee thereof, and senior management, of compliance initiatives, identified compliance deficiencies and corrective action is taken and notify directors and senior management of Suspicious Activity Reports (SAR’s) filed.
- Provide for program continuity despite changes in management or employee composition or structure.
- Meet all regulatory record-keeping and reporting requirements, meet recommendations for BSA/AML compliance and provide for timely updates in response to changes in regulations.
- Implement risk-based customer due diligence (CDD) procedures and processes designed to understand the nature and purpose of customer relationships for the purpose of developing a customer risk profile and conducting ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information (including beneficial owners of legal entity customers).
- Identify reportable transactions and accurately file all required reports including SAR’s, Currency Transaction Reports(CTR’s) and CTR exemptions.
- Provide for dual controls and segregation of duties. [Employees that complete the reporting forms (e.g., SAR’s, CTR’s, and CTR exemptions) should not also be responsible for filing the reports or granting the exemptions].
- Provide sufficient controls and monitoring systems for timely detection and reporting of suspicious activity.
- Provide for adequate supervision of employees that handle currency transactions, complete reports, grant exemptions, monitor for suspicious activity or engage in any other activity covered by the BSA and it’s implementing regulations.
- Incorporate BSA compliance into the job descriptions and performance evaluations of appropriate personnel.