BSA/AML Student Exercises Dec. 2022

XVII. Information Sharing – USA PATRIOT Act Policy and Procedures ...................................... 48 Overview........................................................................................................................................... 48 Section 314(a) ................................................................................................................................... 48 Section 314(b) ................................................................................................................................... 49 Notice Requirement .......................................................................................................................... 50 Verification Requirement.................................................................................................................. 50 Use of Information............................................................................................................................ 50 Safe Harbor Liability ........................................................................................................................ 50 Information Sharing Between Financial Institution and the Federal Government ........................... 50 XVIII. Office of Foreign Assets Control (OFAC) Policy and Procedures..................................... 50 Overview........................................................................................................................................... 50 OFAC Compliance Program............................................................................................................. 51 Update Scanning for OFAC.............................................................................................................. 52 Structure of Accountability............................................................................................................... 52 Maintaining License Information ..................................................................................................... 53 Blocking/Rejecting Transactions ...................................................................................................... 54 Training............................................................................................................................................. 54 Civil Penalties ................................................................................................................................... 55 Audit Program................................................................................................................................... 55 Recordkeeping and Record Retention .............................................................................................. 55 Wire Transfers Department Procedures............................................................................................ 55 OFAC Screening for ACH Transactions .......................................................................................... 56 Commercial Loans/Consumer Loans/Letters of Credit .................................................................... 56 Real Estate Loans.............................................................................................................................. 57 Retail Banking — New Accounts and Operations Personnel........................................................... 57 XIX. Special Measures (Section 311 of the Patriot Act) Policy and Procedures ............................ 58 Overview........................................................................................................................................... 58 Special Measures .............................................................................................................................. 58 XX. Additional Retention of Records Policy and Procedures ........................................................... 59 Overview........................................................................................................................................... 59 NOTE: All officers of the Bank are responsible for the comprehension and implementation of this program and ensuring their employees understanding of their responsibilities. If at any time an employee is uncertain about the proper method of handling a situation or transaction, he or she should refer the issue to their immediate supervisor or contact the BSA/AML Officer for further clarification.

For Training Purposes Only

Page 4