Bank Secrecy Act
Many Laws Make Up “BSA” Bank Secrecy Act Money Laundering Control Act Currency and Foreign Transactions Reporting USA PATRIOT Act
BSA Basics Reporting Recordkeeping
Currency Transaction Reports Currency transactions greater than $10,000 Aggregate same-day transactions File in 15 days
Exemptions Automatic Phase I Phase II
Exemptions Application Annual Review Ineligible Entities
Geographic Targeting Notice from FinCEN Expanded CTR reporting or other transaction reporting
Suspicious Activity Reports Funds from illegal activities Evading BSA reporting requirements No business or apparent lawful purpose
SAR Limits Insider abuse in any amount $5000 more with a suspect $25,000 without a suspect
Suspicious Activity Reports File within 30 days Maintain supporting documentation Supporting documentation can be requested without legal process Keep confidential Report to the Board
Recordkeeping Filed Reports Certain Credit Extensions Geographic Targeting Orders
Monetary Instruments Cash sales between $3,000 and $10,000 Cashier’s checks, teller’s checks, money orders, traveler’s checks (not gift cards) Specific records required
Wires Over $3000 Transactions subject to Reg E are exempt Different requirements if the CU is the originating bank or beneficiary bank
Information Sharing 314(a): Required searches through FinCEN 314(b): Voluntary sharing between financial institutions
Customer Identification Programs 1. Obtain identifying information 2. Verify identity 3. Maintain records 4. Check government lists 5. Provide information collection notice
Required Information Name Date of Birth Address Identification Number
Verifying Identity Form a reasonable belief of member’s identity Review various identification methods ID methods must be listed in the CU’s CIP
Government Lists Crickets Chirping......
Record Retention All identifying information Description or copy of documents used Notes of unusual circumstances Keep for five years
CIP Notice Provide before account opening Various delivery methods are available