BSA/AML Examiner School - Case Study Oct 2023

Internal Use Only

BSA/AML EXAMINER SCHOOL AJ&R Bank & Trust Case Study Introduction

Over the remainder of the week, you will be completing a case study of AJ&R Bank & Trust. For most areas, we will discuss exam concepts and you will apply the concepts by reviewing materials related to the case study. The case study is based on an actual examination of an institution. However, the personal identifying information of the customers and the institution were changed. Later in the week, the outcomes from the examination will be shared with you. The case study is intended to simulate a BSA examination. As such, you will have the opportunity to ask the BSA Officer [ your instructors ] questions on two occasions. You should write down any questions that you have during the exam planning exercise because the initial BSA Officer interview will occur tomorrow. Later in the week, you will develop your conclusions and conduct a simulated BSA Officer exit meeting. To ensure you have a successful experience, you will want to document any potential exceptions, findings, or violations you identify during the transaction testing exercises. Those will help you develop your findings and conclusions related to the BSA program at AJ&R Bank & Trust to discuss with the BSA Officer during the meeting. AJ&R Bank & Trust is a community bank located in a rural area with total assets of $37 million. The bank is locally owned and consists of one full-service location. The local economy is weak with limited commercial loan opportunities. The ratings from the prior exam were 2-2-4-3-2-2/4. The prior exam report stated that the BSA program was satisfactory, and the institution satisfactorily complies with OFAC requirements.