BSA/AML Examiner School Case Study

Internal Use Only

Opening Accounts When the Customer Is Not Present at the Bank................................................. 19 Comparison with Government Lists ................................................................................................. 19 Customer Notification....................................................................................................................... 19 Recordkeeping .................................................................................................................................. 20 XI. Customer Due Diligence and Enhanced Due Diligence Policy and Procedures........................ 20 Customer Due Diligence for all Customers ...................................................................................... 21 Customer Due Diligence Program Checklist:................................................................................... 21 Enhanced Due Diligence for High-Risk Customer........................................................................... 22 CIP vs. Customer Due Diligence ...................................................................................................... 24 Customer Due Diligence (CDD) - New Customers.......................................................................... 24 Enhanced Due Diligence- High Risk Customers.............................................................................. 25 Monitoring High Risk Customers for Unusual Account Activity .................................................... 25 Identifying and Classifying Existing Accounts as High Risk accounts............................................ 26 Individual Selection of High Risk Customers .................................................................................. 26 Questions for All Customers............................................................................................................. 26 Questions Specifically for Consumers to Identify High Risk........................................................... 27 Questions Specifically for Business Customers to identify High Risk............................................. 27 Enhanced Customer Due Diligence-CDD Procedures ..................................................................... 27 Expanded Review Procedures for Enhanced Due Diligence ............................................................ 27 Nonresident Aliens (NRA) and Foreign Individuals Procedures ..................................................... 28 Non-Bank Financial Institutions Procedures .................................................................................... 28 Professional Service Providers (Doctors, Attorneys, etc.) Procedures............................................. 29 Private Banking Due Diligence Program (Non-US Persons) ........................................................... 29 Enhanced Customer Due Diligence-EDD ........................................................................................ 29 Enhanced Scrutiny of Private Banking Accounts for Senior Foreign Political Figures ................... 30 Foreign Correspondent Banking — Recordkeeping and Enhanced Due Diligence Program .......... 31 Special Due Diligence Program For Foreign Correspondent Accounts ........................................... 31 Customer Due Diligence for All Foreign Correspondent Accounts ................................................. 31 Enhanced Due Diligence for High-Risk Correspondent Banks........................................................ 32 Special Procedures When Due Diligence Cannot Be Performed ..................................................... 32 Foreign Correspondent Account Recordkeeping.............................................................................. 33 Record Retention .............................................................................................................................. 34 Politically Exposed Persons (PEP) and Enhanced Customer Due Diligence ................................... 34

For Training Purposes Only

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