In addition, banks do not need to file a Designation of Exempt Person form (FinCEN Form 110) for customers that are a department or agency of the United States, of any State, or of any political subdivision of any State. Overview of BSA/AML, OFAC Regulations, and the Regulatory Bodies. 6. What is the name of the Act that broadened the scope of the Bank Secrecy Act? As of August 13, 2012, RMLOs are required to have a written AML program. How the USA PATRIOT Act affects BSA requirements. a. The primary purpose of the independent review is to monitor the adequacy of the money services business anti-money laundering program. The term Federal functional regulator is defined at 31 CFR 1010.100(r). RMLOs and USA PATRIOT Act: This topic will educate the learner on the provisions and background of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act, amendments to the Bank Secrecy Act (BSA), primary money laundering concerns, and the reauthorization of the USA PATRIOT Act. Compliance Officer III. The fact that a review of customer activity or transactions is determined to be necessary is not necessarily indicative of the need to file a SAR, even if a reasonable review of the activity or transactions might take an extended period of time. The OCC and the U.S. Department of Treasury periodically issue alerts, advisories and rulemakings concerning institutions or individuals who may be engaged in fraudulent activities or be deemed to be of high-risk for money laundering or terrorist financing activities. Enforcement. Banks are not required to file a CTR when a Federal, state or local government official, as part of his or her official duties, engages in a transaction in currency over $10,000. The prohibition against disclosure can raise special issues when SAR records are sought by subpoena or court order. BSA rules apply to RMLOs who qualify based on: The BSA applies to all RMLOs, regardless of size or structure, he practice of disguising the origins of illegally-obtained money. Camp Health Model Policy and Procedures Manual, No. Likewise, an effective BSA/AML program also needs a strong foundation in order to . Question 2(c): Does FinCEN provide depository institutions with a confirmation of receipt of the Designation of Exempt Person form (FinCEN 110)? Each money services business should identify and assess the money laundering risks that may be associated with its unique products, services, customers, and geographic locations. See 74 FR 35830 (July 21, 2009), Anti-Money Laundering Program and Suspicious Activity Report Requirements for Non-Bank Residential Mortgage Lenders and Originators http://edocket.access.gpo.gov/2009/pdf/E-9-17117.pdf; 75 FR 76677 (Dec. 9, , 2 residential mortgage lenders and originators must comply with the Final Rule beginning August 13, 2012.4. Through our world-class programs, we bring together youth of every race, religion, ethnic background, and economic status in programs to develop character, citizenship, and fitness. not Fincen act cip or usa patrior act fincen, __________ is responsible for administering the Bank Secrecy Act. If the individual lacks legal capacity, BSA rules state that the "customer" is the person opening the account on behalf of the person lacking legal capacity. FinCEN's rule to the extent that any transactions could reasonably be considered to be extending a residential mortgage loan or offering or negotiating the terms of a residential mortgage loan.16 Interestingly, the AML Program does apply to foreclosure prevention actions and counseling services Answer 13c: The BSA only requires a CTR for a transaction in currency, such as a deposit, withdrawal, exchange or transfer of currency, in excess of $10,000. In addition, banks do not need to file a Designation of Exempt Person form (FinCEN Form 110) for customers that are a department or agency of the United States, of any State, or of any political subdivision of any State. This Interim Rule, which amends the CTR exemption regulation at 31 CFR 1020.315, became effective on July 31, 2000. Submit this application to your council service center . This course will introduce the learner to the role of the RMLO in ensuring that s/he remains compliant with all aspects of the Bank Secrecy Act in everything that s/he does at the institution. Alerts/Advisories/Notices/Bulletins/Fact Sheets, Suspicious Activity Report (SAR) Advisory Key Terms, BSA Regulatory Efficiency and Effectiveness Initiative, https://www.fincen.gov/resources/filing-information (12/2017). (12/2000). It may be advisable to include the organization's counsel, as well as other senior staff, in such determinations. 5318(g)(2)) prohibits the notification of any person that is involved in the activity being reported on a SAR that the activity has been reported. Example 1: A check casher (whether licensed or non-licensed) that cashes checks in an amount less than $1,000 in currency or monetary instruments for any one person on any one day and is not involved in any other ineligible business activity, or derives no more than 50% of its gross revenue from any such business, may be exempted from CTR reporting requirements as a non-listed business (assuming that all other criteria listed in 31 CFR 1020.315 are met). 6The bank's size, location, and customer base. RMLOs, as the primary providers of mortgage financing, deal directly with consumers, and are in a unique position to identify and assess money laundering fraud. The virtual currency market continues to grow. Fundraising do's. Do file a unit money-earning project application for approval by both the local council and the chartering organization. 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. Question 12a: A business customer of a depository institution provides payroll checks to individual employees for work performed. Public Posting Notice of Finding of Discrimination, Security and Vulnerability Disclosure Policies (VDP). View Solution: List the rules that apply to taxpayers with a qualifying. It may be appropriate for organizations to conduct a review of the activity to determine whether a need exists to file a SAR. 5312 (a) (2) to include as a type of financial institution "a person engaged in the trade of antiquities, including an advisor, consultant, or any other person who engages as a business in the solicitation or the sale of antiquities, subject to regulations prescribed by the Secretary . The SAR regulations direct organizations facing those issues to contact their primary supervisor, as well as FinCEN, to obtain guidance and direction on how to proceed. The following discussion is contained in Section 5 of The SAR Activity Review Trends, Tips & Issues (October 2000). Non-bank financial institutions, however, are required to file a CTR when a Federal, state or local government official, as part of his or her official duties, engages in a transaction in currency over $10,000. Answer 7: The SAR rules require that a SAR be filed no later than 30 calendar days from the date of the initial detection of the suspicious activity, unless no suspect can be identified, in which case, the time period for filing a SAR is extended to 60 days. 8354. Overview An individual who takes a residential mortgage loan application and offers or negotiates terms of a residential mortgage loan for compensation or gain is considered a RMLO. Estimate of the number of small entities to which the Final Rule will apply: For the purpose of arriving at an estimated number of RMLOs, FinCEN relied on information gathered from Start Printed Page 8155 various public sources, including major trade associations and Federal and state government regulators. The filing institution is provided an acknowledgement that the report has been received. If a business engages in multiple business activities (e.g., money transmission in addition to check cashing), it may be treated as a non-listed business so long as no more than 50% of its gross revenues is derived from one or more of the ineligible business activities listed in 1020.315. (6/2001), Answer 11: The safe harbor provisions applicable to SAR filings provide a safe harbor for organizations that provide a SAR to all authorized government personnel, including Federal, state, and local authorities. BSA's adult supervision policy is very clear - 'Two registered adult leaders 21 years of age or over are required at all Scouting activities, including meetings ". A transaction in currency involves the physical transfer of currency from one person to another. In situations involving violations of law requiring immediate attention, the organization should immediately notify appropriate law enforcement and supervisory authorities, in addition to filing a SAR. The Federal Reserve, FDIC, FinCEN, NCUA and OCC issued a fact sheet clarifying that compliance efforts to meet Bank Secrecy Act due diligence requirements for customers that are charities and other nonprofit organizations should be based on the money laundering risks posed by the customer relationship. 20 U.S.C. Regulation questions? Answer 13b: A CTR would be required in this instance because one person is receiving more than $10,000 in currency. After completing this course, the learner will understand: Tweet Understanding BSA Violations 1 T he Bank Secrecy Act (BSA) and its . c. Five percent of the values are less than what X value? How does the DOL rule apply to fee based RIAs? Servicing; Repairs; MOT's; Tyres; Air Conditioning; Restoration Would the institution be required to file a CTR, if no one person received an amount in excess of $10,000? This prohibition extends to disclosures that could indirectly result in the notification to the subject of a SAR that a SAR has been filed, effectively precluding the disclosure of a SAR or even its existence to any persons other than appropriate law enforcement and supervisory agency or agencies. A "financial institution" subject to regulation under the BSA is a term of art that covers a much wider array of businesses and institutions than what one would normally think of as a financial institution. 5311 et seq.. See Pub. T2. Answer 14: The CTR exemption regulations do not distinguish between a licensed or non-licensed business. FinCEN's recent efforts to enforce the BSA have also gone beyond simply targeting RIAs and RMLOs. Thus, any employee identification number, address, or other identifying information obtained should correspond to the government agency involved, and not the government official conducting the transaction. By taking this course you are doing your part to help prevent money laundering, which was an important element of the hi-jackers plans which led to the terrorist attacks of September 11th, 2001. The Bank Secrecy Act (BSA), 31 USC 5311 et seq establishes program, recordkeeping and reporting requirements for national banks, federal savings associations, federal branches and agencies of foreign banks. The following provides answers to basic questions that are frequently asked regarding the BSA. 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