Financial Crime World

IRS Unveils Comprehensive Database for Title 31 Entities

Washington D.C. - The Internal Revenue Service (IRS) has launched a new database designed to house the entire population of Title 31 entities subject to IRS jurisdiction. This comprehensive database contains entity information and examination data, providing a centralized platform for examining compliance with Bank Secrecy Act (BSA) regulations.

Database Features

The database uses multiple tables in an SQL environment, allowing for efficient querying and analysis of financial institution records. It is intended to assist examiners in conducting BSA examinations by providing a comprehensive overview of each entity’s operations, including:

  • Anti-money laundering programs
  • Recordkeeping and reporting requirements
  • Examination history

Goals of BSA Examinations

According to the IRS, the primary goals of any BSA examination are to determine whether a financial institution has established an effective anti-money laundering program, is following all applicable recordkeeping and reporting requirements, and has undergone proper examinations. The database will aid examiners in achieving these objectives by providing real-time access to critical information.

Development and Benefits

The database’s development comes as part of the IRS’ ongoing efforts to enhance its BSA examination process and improve compliance with regulations. The agency has delegated authority to examine casinos under 31 CFR 1010.810(b)(8), and this new database will play a crucial role in supporting these examinations.

By providing examiners with comprehensive information about each entity’s operations, the IRS can better identify potential areas of non-compliance and take corrective action. The database will also enable the IRS to track trends and patterns in financial institution activity, allowing for more targeted examinations and improved overall compliance.

In related news, the IRS has also published a new IRM (Internal Revenue Manual) section detailing terminology and procedures for examining casinos under the BSA. This section covers topics such as:

  • After-the-fact aggregation
  • Backline reviews
  • Foreign branch office transactions

Conclusion

The comprehensive database and updated IRM section are expected to enhance the IRS’ ability to enforce BSA regulations and promote compliance among financial institutions. The IRS is committed to ensuring that financial institutions comply with BSA regulations, and this new database is a critical tool in achieving that goal.