Bank Secrecy Act (BSA) Office of Foreign Assets Control (OFAC)

1
Bank Secrecy Act (BSA)Office of Foreign Assets
Control (OFAC)
2
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
  

3
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

4
Compliance with BSA

• Protects credit unions reputation
• Positive impact on the community
• Penalties, fines, possible imprisonment for BSA
  violations

5
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

6
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

7
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

8
Office of Foreign Assets Control (OFAC)

• Administers and enforces economic sanctions
• Primarily against countries and groups of
  individuals
• Many predecessors
• Formally created in 1950

9
OFAC Compliance Issues

• Written policy
• Annual approval
• Adequate training
• Responsible person

10
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

11
USA Patriot ACT

• Uniting and Strengthening America by Providing
  Appropriate Tools Required to Intercept and
  Obstruct Terrorism
• KNOW YOUR MEMBERS!!!!!!

12
Questions
13
Contact Information

• Thomas J. ODonnell
• 518-694-8036
• todonnell_at_wojeskico.com