2020 Journal of Community Bank Studies

FIRST PLACE: Mississippi State University

government, it would be beneficial to all financial institutions, especially smaller institutions, if there was a backflow of information from the government or regulators. This backflow of information from them could inform the banks of current regional, and national, trends and certain risky customers from data compiled from institutional reports around the United States. Citizens National Bank has established a strong, foundational relationship with local law enforcement as well as the attorney general’s office. Through this relationship, CNB has developed an effective way of reporting to the proper authorities. The measures over the recent years that CNB has been implementing has allowed CNB to provide accurate reporting to authorities of all levels. Local law enforcement helps financial institutions through these reporting through successful prosecutions. In addition, investigators from the attorney general’s office will reach out to CNB and ask for certain accounts that have been reported regarding certain issues. This aid gives CNB assistance with their own practices. In 2019, CNB partnered with Zelle to offer person-to-person payments. This allowed customer a convenient avenue to make payments or send money to each other without sharing personal account information. Zelle is widely used in the financial industry and has proven to be a more reliable alternative for financial institutions to track BSA compliance methods. CNB expressed their concerns with customers using other applications means to deposit into their accounts. It is very difficult for

Citizens National Bank has established a strong, foundational relationship with local law enforcement as well as the attorney general’s office.

financial institutions to track where transactions are coming from when customers use these other methods of transferring money. Mr. Stringer expressed the idea of a backflow from the government and regulators to the bank on preventing fraud, implementing a clear two- way street that will allow smaller banks to gain additional insight regarding fraud and money laundering. This will allow banks to better prepare and protect themselves from potential future damage. The government has many resources that could be provided to community banks and assist with BSA compliances. Part IV: Policy Recommendation & The Future of BSA/AML Reform Clarification of Key Components and Compliance Expectations Citizens National Bank has taken extensive measures to meet, and exceed, regulations set by the Financial Crimes Enforcement Network

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