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Bank Secrecy Act (BSA) Office of Foreign Assets Control (OFAC). BSA Timeline. 1970 – enacted by Congress 1986 – Money Laundering Control Act 1990 – FinCEN created 1994 – FinCEN to administer BSA 1996 – Depository institutions to file SARs 1991 – USA Patriot Act enacted.
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Bank Secrecy Act (BSA)Office of Foreign Assets Control (OFAC)
BSA Timeline 1970 – enacted by Congress 1986 – Money Laundering Control Act 1990 – FinCEN created 1994 – FinCEN to administer BSA 1996 – Depository institutions to file SARs 1991 – USA Patriot Act enacted
BSA Compliance Program Requirements Must be in writing and include the following: • Internal policies, procedures, and controls • Designation of a compliance officer • Ongoing employee training program • Independent audit function
Compliance with BSA • Protects credit union’s reputation • Positive impact on the community • Penalties, fines, possible imprisonment for BSA violations
Common Compliance Mistakes • Failure to have a written/adequate compliance program • Failure to implement the program • Lack of SAR reviews • No independent review of the compliance program
BSA – Typical Scenarios • Currency Transaction Reports (CTR) • Structuring to avoid CTR reporting • Report of International Transportation of Currency or Monetary Instruments • Designation of an Exempt Person • Suspicious Activity Report • Recordkeeping requirements • Member Identification Program
Where to get Help!!!! • www.msk.gov, www.irs.gov, or www.fincen.gov • BSA forms 1-800-829-3676 • MSB education materials 1-800-386-6329 • FinCEN Regulatory Helpline 1-800-949-2732
Office of Foreign Assets Control (OFAC) • Administers and enforces economic sanctions • Primarily against countries and groups of individuals • Many predecessors • Formally created in 1950
OFAC Compliance Issues Written policy Annual approval Adequate training Responsible person
OFAC – Typical Scenarios • Specifically Designated Nationals • Blocked Entities • FinCEN every two weeks send new current listing • OFAC list • Run lists against customer lists • Blocking transactions
USA Patriot ACT Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism KNOW YOUR MEMBERS!!!!!!
Contact Information Thomas J. O’Donnell 518-694-8036 todonnell@wojeskico.com