BSA/AML Examiner School - Case Study Oct 2023

LCB12/15

Internal Controls Checklist 22.2: Professional Service Providers

Yes No

N/A

Are the institution's policies, procedures, and processes related to professional service provider relationships adequate, given the institution's professional service provider activities and the risks they present? Based on a review of management information systems (MIS) and internal risk rating factors, does the institution effectively identify and monitor professional service provider relationships? (Note: MIS reports should include information about an entire relationship. For example, an interest on lawyers' trust account (IOLTA) may be in the name of the law firm instead of an individual. However, the hank's relationship report should include the law firm's account and the names and accounts of lawyers associated with the IOLTA.) Is the institution's system for monitoring professional service provider relationships for suspicious activities, and for reporting suspicious activities, adequate given the institution's size, complexity, location, and types of customer relationships?

Y

Y

Y

Comments: The Bank provided a list of one Professional Service Providers (PSPs).

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