BSA/AML Examiner School - Case Study Oct 2023

LCB12/15

Checklist 10.1: Funds Transfers (cont.)

Yes No

N/A

Has the institution adequately analyzed its risk based on the institution's frequency and dollar volume of funds transfers in relation to the financial institution's size, its location, and the nature of its customer account relationships? Is the institution's system for monitoring funds transfers suspicious activities, and for reporting of suspicious activities, adequate given the financial institution's size, complexity, location, and types of customer relationships and include: • Transactions in which the financial institution is acting as an intermediary? • Transactions in which the financial institution is originating or receiving funds transfers from foreign financial institutions, particularly to or from jurisdictions with strict privacy and secrecy laws or those identified as high risk? • Frequent currency deposits and subsequent transfers, particularly to a larger institution or out of the country? • Funds transfers purchased with currency?

Y

Y

NA

Y

Y

Are the institution's procedures adequate for PUPID transactions?

NA

Comments: Wire transfers — The Bank processes domestic and international wires for customers only through Bankers Bank of Tennessee QNet application. The application requires specific security approvals, use of specific IP addresses, and user passwords. Intermediary Financial Institution — Request list responses indicate that the Association does not act as an intermediary Financial Institution. Pay Upon Proper Identification (PUPID) — Request list responses indicate that the Bank does not transact wires for non customers.

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