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BSA)/Anti-Money Laundering (AML) Examination Manual (2010

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BSA)/Anti-Money Laundering (AML) Examination Manual (2010 Bank Secrecy Act/ Anti-Money Laundering Examination Manual Federal Financial Institutions Examination Council Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation, National Credit Union Administration, Office of the Comptroller of the Currency, Office of Thrift Supervision, and State Liaison Committee 2010 Table of Contents TABLE OF CONTENTS The sections of the FFIEC BSA/AML Examination Manual that have been added or significantly modified from the previous edition are reflected by date. INTRODUCTION 5 CORE EXAMINATION OVERVIEW AND PROCEDURES FOR ASSESSING THE BSA/AML COMPLIANCE PROGRAM 15 Scoping and Planning — Overview (2010).............................................................. 15 Examination Procedures ................................................................................. 19 BSA/AML Risk Assessment — Overview (2010) ................................................... 22 Examination Procedures ................................................................................. 31 BSA/AML Compliance Program — Overview (2010) ............................................ 32 Examination Procedures ................................................................................. 38 Developing Conclusions and Finalizing the Examination — Overview (2010) ...... 44 Examination Procedures ................................................................................. 48 CORE EXAMINATION OVERVIEW AND PROCEDURES FOR REGULATORY REQUIREMENTS AND RELATED TOPICS 52 Customer Identification Program — Overview........................................................ 52 Examination Procedures ................................................................................. 59 Customer Due Diligence — Overview..................................................................... 63 Examination Procedures ................................................................................. 66 Suspicious Activity Reporting — Overview (2010)................................................. 67 Examination Procedures ................................................................................. 81 Currency Transaction Reporting — Overview......................................................... 86 Examination Procedures ................................................................................. 88 Currency Transaction Reporting Exemptions — Overview (2010) ......................... 90 Examination Procedures ................................................................................. 95 Information Sharing — Overview ............................................................................ 97 Examination Procedures ............................................................................... 103 Purchase and Sale of Monetary Instruments Recordkeeping — Overview............ 106 Examination Procedures ............................................................................... 109 Funds Transfers Recordkeeping — Overview........................................................ 110 Examination Procedures ............................................................................... 116 Foreign Correspondent Account Recordkeeping and Due Diligence — Overview117 Examination Procedures ............................................................................... 125 Private Banking Due Diligence Program (Non-U.S. Persons) — Overview ......... 130 Examination Procedures ............................................................................... 135 Special Measures — Overview............................................................................... 138 Examination Procedures ............................................................................... 141 Foreign Bank and Financial Accounts Reporting — Overview (2010) ................ 142 Examination Procedures ............................................................................... 143 International Transportation of Currency or Monetary Instruments Reporting — Overview........................................................................................... 144 Examination Procedures ............................................................................... 146 FFIEC BSA/AML Examination Manual i 04/29/2010 Table of Contents Office of Foreign Assets Control — Overview (2010) .......................................... 147 Examination Procedures ............................................................................... 157 EXPANDED EXAMINATION OVERVIEW AND PROCEDURES FOR CONSOLIDATED AND OTHER TYPES OF BSA/AML COMPLIANCE PROGRAM STRUCTURES 160 BSA/AML Compliance Program Structures — Overview (2010)......................... 160 Examination Procedures ............................................................................... 166 Foreign Branches and Offices of U.S. Banks — Overview ................................... 169 Examination Procedures ............................................................................... 173 Parallel Banking — Overview................................................................................ 175 Examination Procedures ............................................................................... 176 EXPANDED EXAMINATION OVERVIEW AND PROCEDURES FOR PRODUCTS AND SERVICES 178 Correspondent Accounts (Domestic) — Overview ................................................ 178 Examination Procedures ............................................................................... 181 Correspondent Accounts (Foreign) — Overview................................................... 183 Examination Procedures ............................................................................... 186 Bulk Shipments of Currency — Overview (2010) ................................................. 188 Examination Procedures ............................................................................... 193 U.S. Dollar Drafts — Overview ............................................................................. 195 Examination Procedures ............................................................................... 196 Payable Through Accounts — Overview ............................................................... 198 Examination Procedures ............................................................................... 201 Pouch Activities — Overview ................................................................................ 204 Examination Procedures ............................................................................... 206 Electronic Banking — Overview (2010) ................................................................ 208 Examination Procedures ............................................................................... 212 Funds Transfers — Overview (2010) ..................................................................... 213 Examination Procedures ............................................................................... 221 Automated Clearing House Transactions — Overview (2010).............................. 224 Examination Procedures ............................................................................... 232 Electronic Cash — Overview (2010)...................................................................... 234 Examination Procedures ............................................................................... 238 Third-Party Payment Processors — Overview (2010) ........................................... 239 Examination Procedures ............................................................................... 242 Purchase and Sale of Monetary Instruments — Overview..................................... 243 Examination Procedures ............................................................................... 244 Brokered Deposits — Overview............................................................................. 246 Examination Procedures ............................................................................... 248 Privately Owned Automated Teller Machines — Overview.................................. 250 Examination Procedures ............................................................................... 253 Nondeposit Investment Products — Overview....................................................... 255 Examination Procedures ............................................................................... 260 Insurance — Overview ........................................................................................... 262 Examination Procedures ............................................................................... 265 Concentration Accounts — Overview.................................................................... 267 FFIEC BSA/AML Examination Manual ii 04/29/2010 Table of Contents Examination Procedures ............................................................................... 269 Lending Activities — Overview............................................................................. 270 Examination Procedures ............................................................................... 272 Trade Finance Activities — Overview (2010)........................................................ 273 Examination Procedures ............................................................................... 278 Private Banking — Overview (2010) ..................................................................... 279 Examination Procedures ..............................................................................
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