BSA/AML Examiner School - Case Study Oct 2023

LCB 12/15

Checklist 8.2: Information Sharing — 314(a) Requests (cont.)

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Did

the institutions use the information provided by FinCEN only for the purpose of: • Reporting to FinCEN as required by the rule; y y y * * * * * * * * * • Determining whether to establish or maintain an account, or to engage in a transaction; or y y y * * * * * * * * *

• Assisting the financial institution in complying with any requirement of the rule? 31 CFR 1010.520(b)(2)(iv)

y y y * * * * * * *

*

Comments: *This auditor could not determine the results because search requests were not completed. According to 31 CFR 1010.520(b)(2)(i), the institution is to "expeditiously" (or within the time period required in the request) search the required records to determine whether it maintains or has maintained any account for, or has engaged in any transaction with, each individual, entity, or organization named in FinCEN's request. I I of 12 (91%) of the 314(a) search requests in our sample were not completed or were completed after the 14 day requirement. According to , the BSA Officer, BSA officer was required to do additional teller duties and the individual who helps search the Bank's data base was out on medical leave. BSA Officer and BSA Assistant are the listed contacts to receive 314(a) requests. According to the BSA Assistant, she receives the email notification from FinCEN that the searches are available. However, she is not trained on how to access the requests or the timing requirements of the searches. Recommendation — It is recommended that BSA Assistant be trained regarding 314(a) search requirements and how to use the "Secure Information Sharing System" (SISS) as soon as possible. In addition, it is recommended that written procedures be created and that those responsible for 314(a) be trained on the procedures. The Bank may also want to consider assigning another employee as a 314(a) contact to ensure compliance with regulatory requirements. This individual should be trained as detailed above.

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