FFIEC BSA/AML Examination Manual

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Introduction	2
Scoping and Planning	12
Risk-Focused BSA/AML Supervision	14
Developing the BSA/AML Examination Plan	19
BSA/AML Risk Assessment	21
Assessing the BSA/AML Compliance Program	25
BSA/AML Internal Controls	27
BSA/AML Independent Testing	29
BSA Compliance Officer	32
BSA/AML Training	34
Developing Conclusions and Finalizing the Exam	36
Assessing Compliance with BSA Regulatory Requirements	41
Introduction	41
Customer Identification Program	42
Customer Due Diligence	51
Beneficial Ownership Requirements for Legal Entity Customers	58
Suspicious Activity Reporting	63
Currency Transaction Reporting	79
Transactions of Exempt Persons	84
Information Sharing	90
Purchase and Sale of Certain Monetary Instruments Recordkeeping	95
Funds Transfers Recordkeeping	98
Foreign Correspondent Account Recordkeeping, Reporting and Due Diligence	104
Private Banking Due Diligence Program (Non-U.S. Persons)	112
Special Measures	117
Reports of Foreign Financial Accounts	121
International Transportation of Currency or Monetary Instruments Reporting	123
Office of Foreign Assets Control	126
Program Structures	136
BSA/AML Compliance Program Structures	136
Foreign Branches and Offices of U.S. Banks	142
Parallel Banking	146
Risks Associated with Money Laundering and Terrorist Financing	147
Introduction - Customers	147
Correspondent Accounts (Domestic)	149
Correspondent Accounts (Foreign)	151
Bulk Shipments of Currency	155
U.S. Dollar Drafts	161
Payable Through Accounts	162
Pouch Activities	164
Electronic Banking	166
Funds Transfers	170
Automated Clearing House Transactions	177
Prepaid Access	185
Third-Party Payment Processors	191
Purchase and Sale of Monetary Instruments	195
Brokered Deposits	196
Independent Automated Teller Machine Owners or Operators	198
Nondeposit Investment Products	203
Insurance	207
Concentration Accounts	210
Lending Activities	212
Trade Finance Activites	213
Private Banking	218
Trust and Asset Management Services	223
Nonresident Aliens and Foreign Individuals	227
Politically Exposed Persons	229
Embassy, Foreign Consulate, and Foreign Mission Accounts	233
Non-Bank Financial Institutions	235
Professional Service Providers	243
Charities and Nonprofit Organizations	244
Business Entities (Domestic and Foreign)	248
Cash-Intensive Businesses	254
Appendices	256
Appendix 1 – Beneficial Ownership	256
Appendix A – BSA Laws and Regulations	259
Appendix B – BSA/AML Directives	265
Appendix C – BSA/AML References	266
Appendix D – Statutory Definition of Financial Institution	271
Appendix E – International Organizations	273
Appendix F – Money Laundering and Terrorist Financing Red Flags	274
Appendix G – Structuring	284
Appendix H – Request Letter Items (Core and Expanded)	286
Appendix I – Risk Assessment Link to the BSA/AML Compliance Program	304
Appendix J – Quantity of Risk Matrix	305
Appendix K – Customer Risk Versus Due Diligence and Suspicious Activity Monitoring	307
Appendix L – SAR Quality Guidance	308
Appendix M – Quantity of Risk Matrix – OFAC Procedures	310
Appendix N – Private Banking – Common Structure	311
Appendix O – Examiner Tools for Transaction Testing	312
Appendix P – BSA Record Retention Requirements	315
Appendix Q – Abbreviations	320
Appendix R – Enforcement Guidance	324
Appendix S – Key Suspicious Activity Monitoring Components	333
Appendix T – BSA E-Filing System	334

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