BSA/AML Examiner Training Series 2

31 CFR Chapter X – Financial Crimes Enforcement Network (Continued)

Code

Failure to retain additional information on non-customer beneficiaries of payments of $3M or more Section 1020.410(a)(3)(i) and (ii) of the Treasury Department’s Bank Secrecy Act regulations requires information in addition to that found in Section 1020.410(a)(1)(iii) for payment orders of $3,000 or more received for a beneficiary that does not have an established relationship with the covered financial institution. Failure to retain funds transfer originator information by name and account number Section 1020.410(a)(4) of the Treasury Department’s Bank Secrecy Act regulations requires that a covered financial institution retain information for originators retrievable by reference to the name of the originator, and if the originator is an established customer with an account used to transfer funds, the information also must be retrievable by account number. Failure to retain funds transfer beneficiary information by name and account number Section 1020.410(a)(4) of the Treasury Department’s Bank Secrecy Act regulations requires each covered financial institution to retain beneficiary information so that it is retrievable by reference to the name of the beneficiary. If the beneficiary also is an established customer of the covered financial institution and has an account used for funds transfers, the beneficiary information must also be retrievable by account number. Failure to verify identity using acceptable identification documents Section 1020.410(a)(5) of the Treasury Department’s Bank Secrecy Act regulations requires that where verification is required under paragraphs (a)(2) and (a)(3) of the Section, a covered financial institution shall verify a person's identity by examination of a document (other than an account signature card), preferably one that contains the person’s name, address, and photograph, that is normally acceptable by financial institutions as a means of identification when cashing checks for persons other than established customers. Failure to include information on funds transfer transmittal orders of $3M or more Section 1010.410(f)(1) of the Treasury Department’s Bank Secrecy Act regulations requires that each covered financial institution include specific information in the transmittal order for funds transfers of $3,000 or more. As intermediary failure to relay transmittal order information to next receiving financial institution Section 1010.410(f)(2) of the Treasury Department’s Bank Secrecy Act regulations requires each receiving covered financial institution acting as an intermediary to include in the transmittal order for transmittals of funds of $3,000 or more certain information to the next receiving financial institution.

66,006

66,007

66,008

66,009

66,010

66,011

Revised 5/3/2023

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