BSA/AML Examiner School Case Study

Internal Use Only

PEP Accounts Enhanced Customer Due Diligence-EDO ................................................................ 34 PEP Due Diligence Procedures ........................................................................................................ 35 Money Services Businesses Guidelines............................................................................................ 35 Minimum Bank Secrecy Act Due Diligence Guidelines .................................................................. 36 Bank Secrecy Act/Anti-Money Laundering Risk Assessment Guidelines....................................... 37 Due Diligence Guidelines for Higher Risk Customers..................................................................... 38 Identification and Reporting of Suspicious Activity Guidelines ...................................................... 39 XII. Suspicious Activity Report (SAR) Policy and Procedures ........................................................ 40 Overview........................................................................................................................................... 40 Suspicious Activity Reporting Process ............................................................................................. 40 Notification of the SAR filing to the Board of Directors.................................................................. 41 Confidentiality .................................................................................................................................. 41 Sharing Suspicious Activity Reports ................................................................................................ 42 Safe Harbor ....................................................................................................................................... 42 Record Retention .............................................................................................................................. 42 XIII. Currency Transaction Reporting (CTR) Policy and Procedures ............................................ 43 Overview........................................................................................................................................... 43 CTR Verification .............................................................................................................................. 43 Filing Timeframes and Record Retention Requirements.................................................................. 43 Monitoring Cash Activity ................................................................................................................. 44 XIV. Currency Transaction Reporting Exemption Policy and Procedures ..................................... 44 Overview........................................................................................................................................... 44 Exemptions ....................................................................................................................................... 45 Ineligible Businesses......................................................................................................................... 46 Effect on Other Regulatory Requirements........................................................................................ 46 XV. Purchase and Sale of Monetary Instruments Recordkeeping Policy and Procedures ................ 46 Overview........................................................................................................................................... 46 XVI. Funds Transfer Recordkeeping Policy and Procedures .......................................................... 47 Overview........................................................................................................................................... 47 Procedures......................................................................................................................................... 47 Procedures: Funds Transfers............................................................................................................. 48 Recordkeeping Procedures for Banks ............................................................................................... 48 Travel Rule Requirements ................................................................................................................ 49

For Training Purposes Only

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