BSA/AML Examiner School Case Study

Internal Use Only

Funds transfer personnel should refer to the OFAC Policy and Procedures for access to lists of countries and entities with which the Bank may not do business and should refer to such lists whenever sending or

receiving foreign funds. Please refer to the OFAC Policy and Procedures. XVII. Information Sharing – USA PATRIOT Act Policy and Procedures

Overview It is the policy of the Bank to ensure proper adherence to Section 314 of the USA PATRIOT Act, which authorizes the sharing of information between the federal government and financial institutions, and among financial institutions, for the purpose of identifying possible money laundering or terrorist activities. Section 314(a) Requests for Records — Information Sharing between Law Enforcement A Federal law enforcement agency investigating terrorist activity or money laundering may request that FinCEN solicit certain information from the Bank on the investigating agency's behalf. When submitting such a request to FinCEN, the Federal law enforcement agency shall provide FinCEN with a written certification, in such form and manner as FinCEN may prescribe. At a minimum, such certification must: 1. State that each individual, entity or organization about which the Federal law enforcement agency is seeking information is engaged in; or 2. Is reasonably suspected based on credible evidence of engaging in, terrorist activity or money laundering. It must include enough specific identifiers, such as date of birth, address and social security number that would permit the Bank to differentiate between common or similar names and identify one person at the agency who can be contacted with any questions relating to the request. FinCEN will then send these requests to all banks for search of records. FinCEN posts section 314(a) subject lists through their FinCEN secure website. Every two weeks, or more frequently it an emergency request is transmitted, the Bank's designated point(s) of contact Kelli Bowen will receive notification from FinCEN via email that there are new postings to FinCEN's secure website. The point of contact will be able to access the current section 314(a) subject list (and one prior) and download the files into our System for searching. The Bank is required to report all positive 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. It is against Bank policy to use information provided by FinCEN in an investigation for any purpose other than: reporting to FinCEN, determining whether to establish or maintain an account or to engage in a transaction, or assisting the Bank in complying with this requirement. Additionally, the Bank may not disclose to any person, other than FinCEN or the Federal law enforcement agency on whose behalf FinCEN is requesting information, the fact that FinCEN has requested or has obtained information under this section, except to the extent necessary to comply with such an information request. However, the Bank is authorized to share information concerning an individual, entity or organization named in a request fiorn FinCEN in accordance with this policy. Such sharing shall not disclose the fact that FinCEN has requested information concerning such individual, entity or organization.

For Training Purposes Only

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