BSA/AML Examiner School - Case Study Oct 2023

LCB 12/15

Internal Controls Checklist 8.1: Information Sharing

Information Sharing with Law Enforcement — Section 314(a

Yes No

N/A

Is the institution currently receiving section 314(a) requests from FinCEN or from an affiliated financial institution that serves as the subject financial institution's point of contact? Does the institution have adequate policies, procedures, and processes to document compliance; maintain sufficient internal controls; provide ongoing training; and independently test its compliance with 31 CFR 1010.520, which implements section 314(a) of the Patriot Act? Has the financial institution designated one person to be the point-of-contact at the institution regarding information requests and provided any other contact information requested by FinCEN? 31 CFR 1010.520(b)(2)(iii) If any of the contact information has changed, did the financial institution promptly notify FinCEN of the changes? 31 CFR 1010.520(b)(2)(iii) If the financial institution uses a third-party vendor to perform or facilitate searches, is there is an agreement and/or procedures to ensure confidentiality? Is the financial institution's documentation to evidence compliance with section 314(a) requests adequate?

Y

*N

Y

y

NA

*y Comments: *The Bank does not have written procedures and does not appear to have trained all 314(a) contacts. *Please refer to Transaction Testing Checklist 8.2: Information Sharing — 314(a) Requests Points of Contact — The September 30, 2015 Call Report indicates that BSA Officer and BSA Assistant/Compliance Officer arc 314(a) contacts. Third Party Vendors - Request list responses indicate that the Bank does not engage third party vendors to complete 314(a) searches. Verification — The Bank uses a form that documents tracking numbers; respond by dates; completion dates; results, and reviewer and verifier that is completed for each request. Information Sharing with other Financial Institutions 314(b) — The Bank does not participate in 314(b).

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