BSA is the common name for a series of laws and regulations enacted in the United States to combat money laundering and the financing of terrorism.
What is the purpose of a BSA?
The Currency and Foreign Transactions Reporting Act of 1970—which legislative framework is commonly referred to as the “Bank Secrecy Act” (BSA)—requires U.S. financial institutions to assist U.S. government agencies to detect and prevent money laundering.
What are the 4 pillars of BSA AML?
For many years AML compliance programs were built on the four internationally known pillars: development of internal policies, procedures and controls, designation of a AML (BSA) officer responsible for the program, relevant training of employees and independent testing.
What are the 5 pillars of BSA AML compliance?
Abrigo Advisory Services BSA/AML Compliance Program. The key 5 pillars of an AML Program are internal controls, a designated BSA officer, ongoing training, independent testing, and customer due diligence (CDD) – the newest pillar. Staying on top of BSA compliance and suspicious activity can feel overwhelming.
Is BSA the same as AML?
In 1970, Congress passed the Bank Secrecy Act (BSA)—also known as the Anti-Money Laundering (AML) law. Since then, financial institutions like yours have been required to cooperate with government agencies to detect and prevent money laundering.
Who regulates BSA AML?
Financial Crimes Enforcement Network (FinCEN)
BSA-related reporting requirements for national banks and savings associations are administered by the US Department of Treasury’s Financial Crimes Enforcement Network (FinCEN).
Why is BSA AML important?
The BSA provides a foundation to promote financial transparency and deter and detect those who seek to misuse the U.S. financial system to launder criminal proceeds, finance terrorist acts, or move funds for other illicit purposes. The BSA requires each bank to establish a BSA/AML compliance program.
What are the 3 stages of AML with examples?
The three different stages are:
- Placement. It’s the first stage, where the illicit proceeds are introduced into the legal financial system.
- Layering. This is the second stage where the origins of the funds are concealed by moving them around in a series of complex bank transfers or financial transactions.
- Integration.
What are the 3 main factors to consider in determining AML risk?
Customer risk-rating models are one of three primary tools used by financial institutions to detect money laundering. The models deployed by most institutions today are based on an assessment of risk factors such as the customer’s occupation, salary, and the banking products used.
What is CDD and EDD?
Customer due diligence (CDD) and enhanced due diligence (EDD) are different tiers of know your customer (KYC) processes completed by businesses on their customers. They’re mandated by regulatory organizations for many different industries, but are most prevalent across financial services.
What are the 7 elements of a compliance program?
However, 7 key elements exist in virtually all legally effective compliance programs:
- Policies & Procedures.
- Chief Compliance Officer/Compliance Committee.
- Education & Training.
- Reporting.
- Monitoring & Auditing.
- Enforcement.
- Responding To Issues.
What are the 4 customer due diligence requirements?
To ensure that your business is following best practices, we have put together the following five-step checklist to help improve your CDD processes.
- Step 1: Verify customer identities.
- Step 2: Assess third-party information sources.
- Step 3: Secure your information.
- Step 4: Take any necessary additional measures.
What is the meaning of BSA in education?
BSA or the Basic Shiksha Adhikari takes care of the primary education in the government schools. She/he has a team of BEO(Block Education Officer) earlier known as ABSA to overlook the primary education sphere in the block.
What is a BSA compliance officer responsible for?
The BSA compliance officer is responsible for coordinating and monitoring day-to-day BSA/AML compliance. The BSA compliance officer is also charged with managing all aspects of the BSA/AML compliance program, including managing the bank’s compliance with BSA regulatory requirements.
What is a BSA assessment?
The development of the BSA/AML risk assessment generally involves the identification of specific risk categories (e.g., products, services, customers, and geographic locations) unique to the bank, and an analysis of the information identified to better assess the risks within these specific risk categories.
What is the fundamental part of BSA?
The cornerstone of a strong BSA/AML compliance program is the adoption and implementation of risk-based CDD policies, procedures, and processes for all customers, particularly those that present a higher risk for money laundering and terrorist financing.
What are the 4 pillars of compliance?
The OECD four pillars of compliance are registration, lodgment, correct reporting and on-time payments.
What is CDD in AML?
Customer due diligence (CDD) is the act of performing background checks and other screening on the customer to ensure that they are properly risk-assessed before being onboarded. CDD is at the heart of Anti-Money Laundering (AML) and Know Your Customer (KYC) initiatives.