BSA/AML Student Exercises Dec. 2022

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

For Training Purposes Only

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