BSA/AML Examiner School - Case Study Oct 2023

matches via the Secure Information Sharing System. The Bank will keep copies of the list, documenting that the search was conducted, regardless of whether there was any information to pass onto FinCEN. All copies of the list will be kept strictly confidential and kept in a secured place. . The following has been implemented by the BSA Department: 1. Record Search Procedures to comply with section 314(a) 2. Procedures to report to FinCEN on positive matches. 3. Two designated contact persons will handle all FinCEN request. 4. Proper procedures are followed to secure FinCEN Information and document searches. Section 314(b) Voluntary Information Sharing The Bank, under the protection of the safe harbor from liability, does share information with any other financial institution or association regarding individuals, entities, organizations and countries for purposes of identifying and, where appropriate, reporting activities that the financial institution or association suspects may involve possible terrorist activity or money laundering. The following rules will be followed by the Bank: Notice Requirement A notice to FinCEN is effective for the one year period beginning on the date of the notice. In order to continue to engage in the sharing of information after the end of the one year period, the new notice should be resubmitted. The BSA Officer is responsible for completing and submitting the "Notice for Purposes of Subsection 314(b) of the USA Patriot Act and 31 CFR 103.110" to FinCEN for the Bank initial and on an annual basis. Verification Requirement Prior to sharing information, the BSA1OFAC Officer and senior management to take reasonable steps to verify that the financial institution with which the Bank intends to share information has submitted to FinCEN their notice. Verification may be obtained by confirming that the other financial institution appears on a list that FinCEN will periodically make available to the Bank that have filed a notice with it, or by contacting FinCEN directly to ensure the notice has been filed. Safe Harbor Liability If the Bank shares information with another financial institution it is protected from liability for such sharing, or for any failure to provide notice of such sharing, to an individual, entity or organization that is identified in such sharing, to the full extent provided by subsection 314(b) of Public Law 107-56. Information Sharing Between Financial Institution and the Federal Government If, as a result of information shared by the Bank, and the Bank knows, suspects or has reason to suspect that an individual, entity or organization is involved in, or may be involved in terrorist activity or money laundering, and the Bank is subject to a suspicious activity reporting, the BSA/OFAC Officer is to file a Suspicious Activity Report. In situations involving violations requiring immediate attention, such as when a reportable violation involves terrorist activity or is ongoing, the BSA/OFAC Officer is to immediately notify, by telephone, an appropriate law enforcement authority and Senior Management in addition to filing a Suspicious Activity Report.

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