The online link under view allows you to see the selected section online. The federal financial institutions examination council issues. Federal financial institutions examination council ffiec bsaaml examination manual. Apr 15, 2020 the members of the federal financial institutions examination council ffiec today released several updated sections and related examination procedures to the. The bsaaml risk assessment should provide a comprehensive analysis of the banks mltf and other illicit financial activity risks. Ffiec bsaaml examination manual updates reveal exam. This examination process includes determining examination staffing needs, including.
The information technology examination handbook infobase concept was developed by the task force on examiner education to provide field examiners in financial institution regulatory agencies with a quick source of introductory training and basic information. On april 15, 2020, the ffiec released an update to the bank secrecy actantimoney laundering examination manual. Developing conclusions and finalizing the examination refer to pages 48 to 51. The bsaaml risk assessment process also enables the bank to better identify and mitigate any gaps in controls. This statement emphasizes the risk focused approach to bsaaml supervision that is based on the bsaaml laws and regulations, and has long been embedded in the manual. Ffiec bsaaml examination manual provides guidance for examiners when conducting bsaaml examinations at financial institutions. Presenting the list see also 31 cfr part 501, ffiec said. Ffiec bsaaml assessing compliance with bsa regulatory. View the ffiec bank secrecy actantimoney laundering manual appendix i risk assessment link to the bsaaml compliance program page under the. View the ffiec bank secrecy actantimoney laundering manual foreign bank.
The information contained in the bsaaml risk assessment assists examiners in developing an understanding of the banks risk profile, risk focusing the. Federal and state regulators release updates to the bsaaml. This longawaited update includes many revisions designed to emphasize and enhance the regulators risk focused approach to bsaaml supervision. In february of 2021, the ffiec released the second round of what appears to be an overhaul of the bsaaml exam manual.
Treasury publishes national money laundering and terrorist financing risk assessments. Bank secrecy actanti money laundering examination manual core examination procedures bsaaml compliance program objective assess the adequacy of the bsaaml compliance program. The recent update does not establish new requirements, but is intended to clearly distinguish the mandatory regulatory requirements and supervisory expectations for assessing the adequacy of your. The development of the bsaaml risk assessment generally involves the identification of specific risk categories e. Ffiec bsaaml appendices appendix j quantity of risk matrix.
Ffiec bsaaml appendices appendix i risk assessment link to. Based on the banks risk profile, determine the bsaaml examination activities necessary to assess the adequacy of the banks bsaaml compliance program and the banks compliance with bsa regulatory requirements. Banks and examiners may use the following matrix to formulate summary conclusions. The bsaaml risk assessment section provides information and procedures for examiners in determining whether the bank has developed a risk assessment process that adequately identifies the mltf and other illicit financial activity risks within its banking operations.
Federal and state regulators release updates to the bsa. Determine whether the bank has developed, administered, and maintained an effective program for compliance with the bsa and all of its implementing regulations. Legal risk also arises if the rights and obligations of parties involved in a payment are subject to considerable uncertainty. View the ffiec bank secrecy actantimoney laundering infobase that was developed by the ffiec s task force on examiner education and the task force on supervision to provide field examiners at the financial institution regulatory agencies with an electronic source for training and distributing needed examination information.
Bank secrecy actantimoney laundering bsaaml examination manual manual that provide instructions to examiners when assessing the adequacy of a banks bsaaml compliance program. An introduction to the ffiec bsaaml examination manual and related concepts. The ffiec bsaaml infobase provides electronic versions of the bsaaml examination manual and related examination procedures the. As a first step, the examiner needs to understand the banks risk profile to tailor the examination plan. Ffiec bsaaml examination manual updates reveal exam process. The ffiec started the list of higher risk products, services, and customers in its bsaaml examination manual. The agencies use a risk focused approach for planning and performing bsaaml examinations, which is reinforced in the joint. The regulators were keen on ensuring that evaluations of bsaaml compliance programs are based on an institutions risk profile for money laundering, terrorist financing, and other illicit financial activities. Ffiec bsaaml appendices appendix m quantity of risk. Introduction assessing compliance with bank secrecy act regulatory requirements.
Ffiec bsaaml appendices appendix j quantity of risk. The management booklet of the ffiec 1 it examination handbook and the ffiec bank secrecy actantimoney laundering bsaaml examination manual provide highlevel descriptions of risk management processes that include planning, risk identification and assessment, controls, and. Apr 28, 2020 the federal financial institutions examination council ffiec bank secrecy actantimoney laundering bsa aml examination manua l is used by federal and state regulators to examine for compliance with bsa and aml requirements, and it is widely used throughout the financial services industry for bsa aml guidance. If you dont, the regulators must conduct a risk assessment on your behalf. Since then, the expectations of both regulators and the industry have continued to evolve. The regulators expect you to conduct a bsaaml risk assessment as stated in the ffiec examination manual. The management booklet of the ffiec1 it examination handbook and the ffiec bank secrecy actantimoney laundering bsaaml examination manual provide highlevel descriptions of risk management processes that include planning, risk identification and assessment, controls, and. The management booklet of the ffiec1 it examination handbook and the ffiec bank secrecy actantimoney laundering bsa aml examination manual provide highlevel descriptions of risk management processes that include planning, risk identification and assessment, controls, and measuring and monitoring. An examinerdeveloped bsaaml risk assessment generally is not as comprehensive as one developed by the bank.
View the ffiec bank secrecy act anti money laundering infobase that was developed by the ffiec s task force on examiner education and the task force on supervision to provide field examiners at the financial institution regulatory agencies with an electronic source for training and distributing needed examination information. View the ffiec bank secrecy actantimoney laundering manual appendix j. In its joint interagency statement, ffiec explained that the latest revisions enhance the risk focused approach to bsaaml supervision. Review the banks bsaaml risk assessment process, and determine whether the bank has adequately identified the mltf and other illicit financial activity risks within its banking operations. The manual has a dedicated section on sanctions, and refers to sanctions several time.
The focus of this webinar is to discuss the 2020 updates to the ffiec bsa aml examination manual. The federal financial institutions examination council ffiec recently announced the publication of substantial revisions to the first section of its bank secrecy actantimoney laundering examination manual the manual regarding the bsaaml examination process and the examination of a banks overall bsaaml program. Ffiec bsaaml scoping and planning risk focused bsa. The manual is used to evaluate compliance with the bank secrecy act and antimoney laundering requirements. The ffiec has issued the first update to the bsaaml examination manual since 2014. Todays updates affect the following manual sections. Management should incorporate their assessments of rdc systems, including products and services, into existing risk assessment processes. Customer due diligence and beneficial ownership requirements for legal entity customers overviews and examination procedures. The changes include discussions of risk assessments, sar filing processes and recognition for assisting law enforcement.
The members of the federal financial institutions examination council ffiec today released several updated sections and related examination procedures to the bank secrecy actantimoney laundering bsaaml examination manual manual that provide instructions to examiners when assessing the adequacy of a banks bsaaml compliance program. Examiners must develop an understanding of the banks mltf and other illicit financial activity risks to evaluate the banks bsaaml compliance program. In evaluating the level of risk, a bank should exercise judgment and take into account all indicators of risk. Apr 15, 2020 the federal financial institutions examination council ffiec today released several updates to the bank secrecy actantimoney laundering bsa aml examination manual. The management booklet of the ffiec1 it examination handbook and the ffiec bank secrecy actantimoney laundering bsaaml examination manual provide highlevel descriptions of risk management processes that include planning, risk identification and assessment, controls, and measuring and monitoring. Ffiec updates its bank secrecy actantimoney laundering. Apr 22, 2020 1 see bsaaml manual, april 2020 update. Joint statement on riskfocused bank secrecy actanti. April 2020 updates to the ffiec bsaaml manual wipfli. The current guidance for fincrime models was written in 2011 and meant for credit and market risk. Javascript must be enabled in your browser in order to use some functions. Bsaaml risk assessment, select bsaaml risk assessmentdeselect. While ofac regulations are not part of the bsa, the core sections include overview and. Banker resource center bank secrecy act antimoney laundering bsaaml 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.
Ffiec it examination handbook infobase remote deposit. An effective bsaaml compliance program requires sound risk. Procedures that provide guidance to examiners for carrying out bsaaml and ofac. For the purposes of the examination, whenever the bank has not developed a bsaaml risk assessment, or the bsaaml risk assessment is inadequate, examiners must develop a bsaaml risk assessment for the bank based on available information. Ffiec it examination handbook infobase legal compliance risk. The federal financial institutions examination council.
The focus of this webinar is to discuss the 2020 updates to the ffiec bsaaml examination manual. Banks and examiners may use the following matrix to formulate summary. Jul 22, 2019 11 see the federal financial institutions examination council bank secrecy actantimoney laundering examination manual manual at s. April 2020 updates to the bank secrecy actanti money laundering examination manual paper copies of fdic fils may be obtained through the fdics public information center, 3501 fairfax drive, e1002, arlington, va 22226 18772753342 or 7035622200. Ffiec it examination handbook infobase legal compliance. Bank secrecy actantimoney laundering examination manual. Assessing the bsaaml compliance program and address areas such as scoping and planning and the bsaaml risk assessment and compliance program regulatory requirements and related topics which include the customer identification program, customer due diligence, suspicious activity reporting, funds transfers recordkeeping, foreign correspondent accounts. This federal financial institutions examination council ffiec bank secrecy act bsa antimoney laundering aml examination manual provides guidance to examiners for carrying out bsaaml and office of foreign assets control ofac examinations.
Risk management of remote deposit capture ffiec home. Account opening controls that incorporate information from credit bureau services may mitigate credit risk exposure to criminals and to customers with a history of financial problems. View the ffiec bank secrecy actantimoney laundering manual appendix m quantity of risk matrix ofac procedures page under the appendices section. To view specific sections of the manual, select within the left column. The information contained in the bsaaml risk assessment assists examiners in developing an understanding of the banks risk profile, riskfocusing the examination scope, and assessing the adequacy of the banks overall bsaaml compliance program and its compliance with bsa regulatory requirements. Prior to using this matrix, they should complete the identification and quantification steps detailed in the bsaaml risk assessment overview section at page 18 of this manual. On april 15, 2020, the ffiec released a 43 page update to their bsaaml exam manual. View the ffiec bank secrecy act anti money laundering manual appendix m quantity of risk matrix ofac procedures page under the appendices section.
The ffiec bsaaml examination manual urges financial institutions to effectively assess and manage risk with respect to thirdparty payment processors and, as a result, a financial institutions risk management program. Ffiec it examination handbook infobase remote deposit capture. The ffiec bsaaml examination manual includes examiner guidance and expectations for ach and other payment systems that may require the collaboration of operational, it, and bsa examiners. Bank secrecy act antimoney laundering examination manual. Ffiec bsaaml examination manual 3 05052018 examiners should primarily focus on whether the bank has effective processes to develop customer risk profiles as part of the overall cdd program.
Ffiec bank secrecy actantimoney laundering examination. Ffiec bsaaml scoping and planning risk focused bsaaml. Ffiec bank secrecy actanti money laundering examination manual ffiec interagency statement. View the ffiec bank secrecy actantimoney laundering manual bsaaml risk assessment page under the bsaaml risk assessment section. Such screening is also the basis for customer verification in support of bsaaml compliance and for qualifying customers for rdc. Bsaaml professionals have been anxiously waiting revisions to the 2014 bsaaml examination manual, federal financial institutions examination council ffiec. The updates cover the bsa aml compliance program sections including scoping and planning, bsa aml risk assessment, assessing the bsa aml compliance program, and developing conclusions and finalizing the exam, as well as the examination procedures related to these areas. Apr 15, 2020 bsaaml risk assessment the manual provides instructions to examiners for assessing the adequacy of a banks bsaaml risk assessment processes, including. If the bank has not developed a bsaaml risk assessment, this fact should be discussed with management. With rdc, the depositary and collecting financial institutions may choose either to send or accept a substitute check or to engage in electronic check presentment ecp where data and images captured from the. Ffiec updates bank secrecy act aml examination manual. Click this link to see a summary of the major changes to the bsaaml exam manual. The changes include discussions of risk assessments, sar filing processes. View the ffiec bank secrecy actantimoney laundering infobase that was.
Bank secrecy actantimoney laundering examination manual2006. View the ffiec bank secrecy actantimoney laundering manual customer due. The release of the updated sections provides further transparency. Building blocks for an effective aml enterprisewide risk. The national proliferation financing risk assessment identifies, discusses, and. Bsaaml examination manual section list and download options. Joint statement on riskfocused bank secrecy actantimoney. The updates cover the bsaaml compliance program sections including scoping and planning, bsaaml risk assessment, assessing the bsaaml compliance program, and developing conclusions and finalizing the exam, as well as the examination procedures related to these areas.
Ffiec emphasizes first line responsibilities in bsa. Determine the adequacy of the banks bsaaml risk assessment process, and determine whether the bank has adequately identified the mltf and other illicit financial activity risks within its banking operations. The first recent revisions of the exam manual took place in early 2020 when four sections were revised with a statement that further revisions were to come. Riskfocused bsaaml supervision the manual provides instructions to examiners for tailoring. Ffiec bank secrecy actantimoney laundering examination manual. The longterm goal of the infobase is to provide justintime training for new regulations and for other topics of specific concern to. The management booklet of the ffiec 1 it examination handbook and the ffiec bank secrecy actantimoney laundering bsaaml examination manual provide highlevel descriptions of risk management processes that include planning, risk identification and assessment, controls, and measuring and monitoring. The information contained in the bsaaml risk assessment assists examiners in developing an understanding of the banks risk profile, risk focusing the examination scope, and assessing the adequacy of the banks overall bsaaml compliance program and its compliance with bsa regulatory requirements. Scoping and planning guidance to examiners on riskfocused supervision and developing the examination plan. Bank secrecy actantimoney laundering examination manual core examination procedures scoping and planning objective identify the banks bsaaml risks and develop the examination scope and plan. For example, in the united states, the prudential bank regulators first issued substantive guidance in the inaugural version of the federal financial examination councils ffiec bsaaml examination manual 2005. The management booklet of the ffiec1 it examination handbook and the ffiec bank secrecy actantimoney laundering bsa aml examination manual provide highlevel descriptions of risk management processes that include planning, risk identification and assessment, controls, and measuring and. Washington the federal financial institutions examination council ffiec today released updates to four sections of the bank secrecy actantimoney laundering bsaaml examination manual. Risk management of remote deposit capture ffiec home page.
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