Title: The National Money Transmitters Association, Inc. and The Council on Standards and Practices of the NMTA A Basis for Progress
1The National Money Transmitters Association,
Inc.andThe Council on Standards and Practices
of the NMTAA Basis for Progress
2Introduction
- Participation should be voluntary deference to
state licensing requirements - Review and rate any member who desires to be
recognized for a higher level of compliance - System will seek to build on the existing
independent reviews we are all already paying
for, by adding two more layers of independent
desk review, for clarity and completeness
3Introduction
- CSP should evolve into the recognized
professional association for those who do outside
compliance reviews on MTs/MSBs - Peer review is how every other profession and
industry debates and agrees on standards,
implements testing, certification, and
self-policing - Members may excel, get the recognition they
deserve, and give the banks more detailed
information and comfort when they grant those
members an account
4Purpose
- To establish procedures for
- Member Admissions
- Member Rating
- Member Discipline
- Standards-Setting
- Examination
- Scoring
- Evaluation
- Certification
5Premise
- The same review we do on our members can serve
for banks as well - The value of the independent reviews we already
have, can be enhanced by peer certification
6Why is Rating and Certification so Important?
- To get us bank accounts
- To minimize duplication of effort
- To minimize money, time spent on reviews
- To make reviews do double duty
- To promulgate broad recognition, trust
- To train more people to do reviews
7Why the NMTA?
- A public / private entity is necessary
- Broad industry participation is necessary
- Peer review is necessary
- Lowest cost for the masses is necessary
- No one else will do what needs to be done
- No one else can do what needs to be done
8The Review and Rating System is the Key
- Challenges to be met
- 1. Get reviews standardized, objectified and
endorsed by every sector - 2. Figure out how many man-hours are reasonable
for different size and type of organizations - 3. Figure out who is going to do it
- 4. Figure out who is going to pay for it (share
costs for agents) - 5. Start training programs to train reviewers,
CEOs and COs, familiarize everyone with what the
review proves and how
1.
9Result
If you get a passing score, you get a bank
account.Period.
10Why Colored Logos and Membership Levels?
- Members undergo certification to the extent they
choose to and are willing to pay for - This provides positive incentive, rather than
mere condemnation - Basic (Green) Membership provides broad inclusion
with minimum standards - Higher levels (Silver and Gold) encourage and
recognize excellence and allow for distinction
11General Considerations
- For licensees, we do not need to certify
- Identity
- Corporate existence
- Background check
- Personal and business financials, etc..
- Because states do that.
- But we could, at the members request.
12Basic Membership Requirements
Licensed in any US jurisdiction No pending indictments Fills out self-certified form and pays dues No member objections
13Silver Membership Requirements
Submits assessment and does reasonably well. May be small, but good (manual systems.) No member objections
14Gold Membership Requirements
Submits assessment and does very well. State-of-the-Art systems No member objections.
15The Council on Standards and Practices of the
NMTA
16The Council on Standards and Practices of the
NMTA
- May get involved at any time in
- Standards-setting
- Assessment format / process
- Framing the debate
- Commenting on Green members
- And when called upon to review those applying for
Silver or Gold rating - NMTA retains independent judgment
17The Council on Standards and Practices of the
NMTA
Provides a check and balance to the NMTA Is an outside, professional organization Has a professional relationship with the NMTA Will evolve into standards body for MT/MSB audits and audit professionals Retains its independent judgment and autonomy Withholds its seal of approval at will Serves pro bono at a basic level Licensee may pay for more work, if desired
18The Council on Standards and Practices of the
NMTA
- Avoids one licensee judging another
- competitors opinion not objective
- confidential info guarded from competitors
- Assists the NMTA in complaints, removals
- Provides independence, objectivity and
credibility - E.D. and staff do most of the legwork
19THE SEAL OF THE CSP IS GRANTED AT THE DISCRETION
OF THE CSP
20The NMTA Meta-Assessment
- To be filled out and signed by the existing
outside reviewer - Leverages the outside review
- Acts as a check for completeness
- Adds two more layers of expert opinion, at
minimal cost
21Assessment Format Example
- Licensed Money Transmitter
- BSA/AML Compliance Program Assessment Report
- as of ______________ Assessment on (Company
Name) - A BSA/AML review was performed on ________ from
______ , ______ to ______ , ______ , which
included the following major area - Major Area TRAINING
- Frequency
- Coverage
- Updated Material
- Competence of the Trainer
- Testing
-
- Please rate the performance of the company on
each of the preceding points using the following
scale - 0 No opportunity to observe
- 1 Unsatisfactory
- 2 Below Average
- 3 Average
22Assessment Scale
0 1 2 3 4 5
No opportunity to observe Un-satisfactory Below Average Average Good Excellent
23Methodology Scale
1 2 3 4 5
Interview Personnel Review Paperwork Third Party Verification Direct Sample Verification Total Direct Verification
24Major Area Example
- Compliance Officer
- Competency
- Authority
- Enough personnel
25Major Area Example
- Adequate software
- OFAC
- Agent review and control
- Anti-structuring
- Overall quality standards
- Competency of personnel
26Major Area Example
- Risk Management
- Does the licensee put resources and extra effort
when necessary? - (e.g. high risk countries, high risk agents)
27Major Area Example
- Board Awareness
- Governance
- Policies
- Documentation
28Major Area Example
- Written compliance materials
- Manual
- Other written materials
- Procedures
- Controls
29Major Area Example
- Agent Supervision
- ID threshold
- Computer controls
- Personal visits
- Surprise/undercover visits
- Rehabilitation or cancellation?
30Assessment
- For each Major Area and sub-category
- Raw scores
- Methodology described
- Narrative comments
- Weight-adjusted score with comments
- Bottom Line
- overall executive summary
- overall score
- notes for improvement
31Some Other Major Areas
- Escheatment / Gramm-Leach-Bliley
- OFAC (very important)
- Non-BSA compliance
- Legal matters
- State compliance
- Disaster recovery
- IT Audits
- Due diligence on foreign correspondents
32Standardized BSA/AML Checklist
- Example of a potential CSP application
- This application will help to ensure that you
have not overlooked a potential subject that may
be covered in a review. - But, just as importantly
33Standardized BSA/AML Checklist
- It can help prove to your bank/regulator that
your AML compliance program is taken seriously
and is well managed
34Features
- Easy QA format based on the BSA and FinCEN
guidance - Ability to assign remediation tasks to
responsible parties - Attach notes to each item allows the user to
document current and future needs regarding BSA
implementation and examination status - Printable custom reports to show your bank the
status of your compliance with legislation,
regulation and guidance - Easy to use searchable help file for all
legislation, regulation and MSB guidance - Status graph (histogram) highlights the
completion of your AML responsibilities - Allows you to conduct a self assessment and
reduce costs associated with independent testing
35Made available to youthrough NMTA for a limited
time
- Free download
- Easy to use, no additional software
- No special technical requirements
- Updated regularly
- http//www.impactAML.com/MSBChecklist.html
36Silver and Gold RatingApplication Process
- E.D. accepts application
- E.D. and staff collect info
- E.D. presents info to CSP
- CSP requests more info or proofs
- CSP renders decision
- E.D. presents abstracted case to the full Board
or appointed committee - Member may defend his case
- Board vote is taken on level of certification
- If approved, color announcement is made, if
not - Licensee may show proof of cure and re-apply
37Member Objection Process
- Member with complaint informs E.D. at any time
- E.D. and staff collect info
- E.D. presents info to CSP
- CSP requests more info or proofs, if necessary
- CSP renders opinion
- E.D. presents case to the full Board or appointed
committee - Member may defend his case
- Board vote is taken
- If sustained, Board decides appropriate action
- Licensee may usually show proof of cure and
re-apply
38END RESULT
With prior permission, reviews may be released to specified parties (banks, etc.)Member receives dated certificates from the NMTA and the CSP. Member may display the following logo combinations next to their name With prior permission, reviews may be released to specified parties (banks, etc.)Member receives dated certificates from the NMTA and the CSP. Member may display the following logo combinations next to their name
(or Agent Logo) (No CSP review)
39Next Up.
- International Standardization of the Money
Transfer Business - Requires broad participation from all sectors and
countries - Requires a framework of organization,
communication, deliberation
40Thank You!
- If you are interested in getting involved on the
Steering Committee of the Council of Standards
and Practices (CSP), please contact - Kenneth L. Bryant
- Chairman
- Steering Committee
- NMTA CSP
- ken_at_amlcft.com