BSA/AML Examiner School - Case Study Oct 2023

LCB12/15

Internal Controls Checklist 9.1: Purchase and Sale of Monetary Instruments

Yes No

N/A

From the volume of sales and the number of locations that monetary instruments are sold, does the institution appropriately manage the risk associated with monetary instrument sales? Is the institution's system for monitoring monetary instruments for suspicious activities, and for reporting suspicious activities, adequate given the institution's volume of monetary instrument sales, size, complexity, location, and types of customer relationships? Does the suspicious activity monitoring and reporting systems (either manual or automated) include a review of: • Sales of sequentially numbered monetary instruments from the same or different purchasers on the same day to the same payee? • Sales of monetary instruments to the same purchaser or sales of monetary instruments to different purchasers made payable to the same remitter? • Common purchasers, payees, addresses, sequentially numbered purchases, and unusual symbols (money launderers are known to identify the ownership or source of illegal funds through the use of unique and unusual stamps)? Based on a review of the records of the sales of monetary instruments for a period of time (e.g., teller's proof sheets, etc.), is the information retained adequate to determine the amount of currency received in each sale? • Monetary instrument purchases by non-customers?

Y

y

y

Y

NA

Y

Y Comments: Monetary Instruments Sold - The Bank sells cashier's checks to customers only.

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