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Financial Institutions Must Comply with BSA and USA Patriot Act Regulations

Washington D.C., USA - Financial institutions are required to comply with regulations under the Bank Secrecy Act (BSA) and related anti-money laundering laws to prevent criminal activity such as money laundering, tax evasion, and terrorist financing.

Establishing Effective Compliance Programs

According to industry experts, financial institutions must establish effective BSA compliance programs that include:

  • A system of internal controls to assure ongoing compliance
  • Independent testing for compliance
  • Designation of an individual responsible for coordinating and monitoring day-to-day compliance
  • Training for appropriate personnel

Additional Requirements

In addition, financial institutions are required to:

  • Establish effective customer due diligence systems and monitoring programs
  • Screen against Office of Foreign Assets Control (OFAC) and other government lists
  • Develop risk-based anti-money laundering programs
  • Develop Customer Due Diligence (CDD) Programs
  • Develop Customer Identification Program (CIP)
  • Keep records of cash purchases of negotiable instruments
  • File reports of cash transactions exceeding $10,000 (daily aggregate amount), and
  • Report suspicious activity that might signal criminal activity

AML/CTF Reporting Obligations

Financial institutions are also required to file reports with the Financial Crimes Enforcement Network (FinCEN) in connection with certain transactions. These reports include:

  • Currency Transaction Reports (CTR): Reports of cash transactions exceeding $10,000 in one business day
  • Suspicious Activity Reports (SAR): Reports of any cash transaction where the customer seems to be trying to avoid BSA reporting requirements or suggests that they are laundering money or otherwise violating federal criminal laws

How MemberCheck Can Help

MemberCheck provides a secure and simple solution for financial institutions to scan for politically exposed or high-risk individuals, as well as check names against sanction, regulatory, law enforcement, and other official lists. The platform’s sophisticated scan filters and due diligence workflow help minimize the time spent sorting through false matches.

“We understand the importance of AML compliance and are committed to helping our clients meet their obligations,” said [Name], CEO of MemberCheck. “Our platform provides a secure and efficient way for financial institutions to identify high-risk individuals and transactions, and to report suspicious activity.”

For More Information

For more information about MemberCheck’s AML solutions, please visit our website or request a demo.

Disclaimer

This page is intended as general information only and should not be relied on as the sole source of information for your AML obligations and AML program. Please visit your local regulatory authority sites for the latest relevant and full information.