BSA-AML Examiner School Case Study eBook
Internal Use Only
BSA/AML Policy and Program
● Transactions conducted or attempted by, at, or through TS&J’s Critical Third Party and aggregating $5,000 or more, where the Critical Third Party knows, suspects, or has reason to suspect that the transaction: ○ May involve potential money laundering or other illegal activity (e.g., terrorism financing); ○ Is designed to evade the BSA or its implementing regulations; or ○ Has no business or apparent lawful purpose or is not the type of transaction that the particular customer would normally be expected to engage in, and the Bank knows of no reasonable explanation for the transaction after examining the available facts, including the background and possible purpose of the transaction. Critical Third Parties will send all UARs to TS&J in as timely a manner as possible and will seek in all cases to send the UAR within [10 calendar days] of the initial detection of facts. This allows sufficient time for TS&J to review the UAR and, if necessary, file with FinCEN within the prescribed 30 calendar days. Unless otherwise directed by TS&J, Critical Third Parties will provide UARs to TS&J in a format that facilitates efficient filing of a SAR to FinCEN in the event the Bank deems the activity to be reportable. Once a UAR is filed, TS&J’s Critical Third Parties will support the Bank’s investigative process by promptly responding to any requests for clarification or additional information. Critical Third Parties will be responsible for documenting all UAR deliberations, including the rationale for decisions not to file UARs, and will be required to retain records of these decisions. In cases where the customer’s account is not closed, a 90-day review is performed to determine whether there is continuing activity that warrants an additional UAR. In each case where a Critical Third Party sends a UAR, the BSA/AML Officer will evaluate whether to close the customer’s account and document that decision, and communicate this to the Critical Third Party. Critical Third Parties will be required to close any account upon receipt of a request from the BSA/AML Officer. TS&J prohibits all employees from its Critical Third Parties, from “tipping off” customers that they are under investigation and/or that the Critical Third Party has filed a UAR on them . The Critical Third Party’s AML Officer ensures that all relevant Critical Third Party employees receive training (including the prohibition against “tipping-off”) on how to report suspicious activity as part of the BSA/AML/OFAC training program, which is summarized below. To reduce risk of disclosure, the Critical Third Parties should restrict internal access to UAR filings, documentation and other UAR-related information to the BSA/AML Officer, other BSA/AML/OFAC Function employees, executive management and the Board.
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