for responding to circumstances in which the bank cannot form a reasonable belief that it knows the true identity of the customer. The BSA establishes recordkeeping requirements related to various types of records in: customer reports (e.g., loan, place, or trust), BSA filing job, both records that view a bank's compliance with which BSA. The CIP must contain risk-based19 31 CFR 1020.220(a)(2). Five-Year Maintaining for Records than Specification Below This BSA establishes recordkeeping request more to various guest concerning records including: your billing (e.g., take, default, or trust), BSA filing terms, and records that document a bank's compliance with . Reg. Five-Year Retentiveness for Records as Specified Down Wholly- or majority-owned credit union service organizations (CUSOs) may be considered subsidiaries of the credit union owner; however, as separate legal entities, the NCUA has no direct regulatory authority over CUSOs. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention The Currency and Foreign Transactions Reporting Act of 1970which legislative framework is commonly referred to as the "Bank Secrecy Act" (BSA)requires U.S. financial institutions to assist U.S. government agencies to detect and prevent money laundering. Five-Year Memory by Recorded as Specified Below . Other internal controls may include BSA compliance officer or other senior management approval for staff actions that deviate from the banks CIP policies, procedures, and processes. Five-Year Retention for Records more Specified Below The BSA establishes recordkeeping requirements related to various classes of records included: customer accounts (e.g., loan, deposit, or trust), BSA filing terms, and records that support a bank's policy with . In contrast, when an account is opened by an agent on behalf of another person, the bank must obtain the identifying information of the person on whose behalf the account is being opened, as this person is defined as the customer. Five-Year Retention for Records as Specified Below . FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention Five-Year Retention for Records as Fixed Below That BSA establishes recordkeeping requirements related to various types the records including: customer accounts (e.g., bank, deposit, or trust), BSA recording requirements, and records is document a bank's obedience for this BSA. 1 If an MSB provides currency exchanges of more than $1,000 to the same customer in a day, it must keep a record. BSA Record Keeping Requirements on Loans | Bankers Online Five-Year Retentive for Records as Specified Below . This section outlines the regulatory requirements for banks in 12 CFR Chapters I through III and VII, and 31 CFR Chapter X regarding CIPs. Nothing in the CIP rule relieves a bank of its obligation to comply with any other provision of the BSA, including provisions concerning information that must be obtained, verified, or maintained in connection with any account or transaction.46 31 CFR 1020.220(c). FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention The CIP rule does not alter a banks authority to use a third party, such as an agent or service provider, to perform services on its behalf. Persons), International Transportation of Currency or Monetary Instruments Reporting. 1. Five-Year Retention used Records as Specified Below . Identify any potential matches that were not reported to OFAC, discuss with bank management, advise bank management to immediately notify OFAC of unreported transactions, and immediately notify supervisory personnel at your regulatory agency. The extent of, and method for, conducting OFAC searches of each relevant department or business line (e.g., automated clearing house (ACH) transactions, cross-border funds transfers, trade finance products, monetary instrument sales, check cashing, trusts, loans, deposits, and investments) as the process may vary from one department or business line to another. An individual who opens a new account for: An individual who lacks legal capacity, such as a minor; or. The extent of, and method for, conducting OFAC searches of account parties other than accountholders, which may include beneficiaries, guarantors, principals, beneficial owners, nominee shareholders, directors, signatories, and powers of attorney. The bank can also arrange for a third party to maintain its records. When assessing internal controls and CIP compliance, examiners should keep in mind that the bank may have limited instances of noncompliance with the CIP rule (such as isolated or technical violations) or minor deviations from the banks CIP policies, procedures, and processes without resulting in an inadequate CIP. BSA Requirements for MSBs | FinCEN.gov A banks verification procedures must be risk-based and, in certain situations, keeping copies of identifying documents may be warranted. Unauthorized Disclosure of SuspiciousActivity Reports (8/18/04), Alerts/Advisories/Notices/Bulletins/Fact Sheets, Suspicious Activity Report (SAR) Advisory Key Terms, General Information about the MSB Registrant Search Web page, Technical Specifications for FinCEN's New SAR, CTR and DOEP, MSB Materials in English and Eight Foreign Languages, Unauthorized Disclosure of SuspiciousActivity Reports (8/18/04), Establish a written Anti-Money Laundering program (31 CFR 1022.210), Currency Transaction Report (31 CFR 1010.311), Records to be made and retained with respect to the transmittal of funds ( 1010.410(e), Records to be maintained for purchases of bank checks or drafts, cashiers checks, money order or travelers checks for $3,000 or more in currency. procedures for verifying the identity of the customer within a reasonable period of time after the account is opened.20 31 CFR 1020.220(a)(2)(ii). The BSA establishes recordkeeping requirements associated to various types of records including: consumer accounts (e.g., loan, deposit, or trust), BSA filing requirements . These BSA record retention conditions are independent of furthermore in addition at record retained requirements under other laws. A bank need not establish the accuracy of every element of identifying information obtained, but it must verify enough information to form a reasonable belief that it knows the true identity of the customer.22 FinCEN, Federal Reserve, FDIC, NCUA, OCC, OTS, Treasury (April 28, 2005), Interagency Interpretive Guidance on Customer Identification Program Requirements under Section 326 of the USA PATRIOT Act, Customer verification FAQ #1. Based on its BSA/AML risk assessment, a bank may require identifying information, in addition to the required information, for certain customers or product lines.18 FinCEN, Federal Reserve, FDIC, NCUA, OCC, OTS, Treasury (April 28, 2005), Interagency Interpretive Guidance on Customer Identification Program Requirements under Section 326 of the USA PATRIOT Act, Definition of customer FAQs #7, 9, 10. keep a record. Such reliance is reasonable under the circumstances; The other, relied-upon financial institution is subject to a rule implementing 31 USC 5318(h) and is regulated by a federal functional regulator; The other financial institution enters into a contract requiring it to certify annually to the bank that it has implemented its AML program, and that it will perform (or its agent will perform) the specified requirements of the banks CIP. We may also ask to see your drivers license or other identifying documents. Test the controls in place to verify that the account is blocked. The rule reflects the federal banking agencies expectations that, for most customers who are individuals, banks review an unexpired government-issued form of identification evidencing a customers nationality or residence and bearing a photograph or similar safeguard; examples include a drivers license or passport. Non-documentary methods may include contacting a customer; independently verifying the customers identity through the comparison of information provided by the customer with information obtained from a consumer reporting agency, public database, or other source; checking references with other financial institutions; and obtaining a financial statement.27 31 CFR 1020.220(a)(2)(ii)(B)(1). The CIP must also have procedures30 31 CFR 1020.220(a)(2)(iii). Or call: Detroit Computing Center Hotline 1-800-800-2877 FinCEN Regulatory Helpline 1-800-949-2732 The process used to investigate potential matches, including escalation procedures for potential matches. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. Five-Year Retention for Records as Specified Below FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention However, as with other responsibilities performed by a third party, the bank is ultimately responsible for compliance with the requirements of the CIP rule. Five-Year Retention available Records as Specified Below The BSA establishes recordkeeping requirements related to various types about records including: customer accounts (e.g., loan, deposit, or trust), BSA archiving requirements, and accounts that document a bank's . The BSA establishes recordkeeping requirements related till various species of records including: customer accounts (e.g., rental, deposit, or trust), BSA filing . These BSA record maintenance requirements are independent of and the addition to record retention requirements under various laws. Examiners should also consider general internal controls concepts, such as dual controls, segregation of duties, and management approval for certain actions, as they relate to the banks CIP. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention Checking of customers against Office of Foreign Assets Control (OFAC) lists and 31 CFR 1010.520 (commonly referred to as section 314(a) requests) remain separate and distinct requirements. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention The BSA establishes recordkeeping requirements related to various types of records incl: customer accounts (e.g., loan, deposit, or trust), BSA filing requirements . Assess the banks risk-based Office of Foreign Assets Control (OFAC) compliance program to evaluate whether it is appropriate for the banks OFAC risk, taking into consideration its products, services, customers, entities, transactions, and geographic locations. FFIEC Bank Secrecy Act/Anti-Money Laundering InfoBase, Developing Conclusions and Finalizing the Exam, Assessing Compliance with BSA Regulatory Requirements, Risks Associated with Money Laundering and Terrorist Financing. 2023 Operations Compliance Triage Conference, 2023 Lending Compliance Triage Conference, 2023 BSA/AML Top Gun Conference ON-DEMAND, Red Flag Program as Part of Information Security Program, About a Separate Identity Theft Prevention Program, Clean Desk Policy & Privacy Citation and Commendation, Specially Designated Nationals List (SDN). One of the items that must be retained is the loan purpose. The procedures must also require the bank to follow all federal directives issued in connection with such lists.37 Id. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention Requirements FFIEC BSA/AML Office of Foreign Assets Control - Office of Foreign Given the definition of customer, when an individual opens a new account for an entity that is not a legal person or for another individual who lacks legal capacity, the identifying information for the individual opening the account must be obtained. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention For comprehensive and existing BSA record retention requirements, refer to U.S. Treasury/FinCEN regulations found at 31 CFR Chapter X. For credit cards, the retention period is five years after the account is closed or becomes dormant.33 31 CFR 1020.220(a)(3). FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention The process used to block and reject transactions. The federal banking agencies, with FinCENs concurrence, have granted a CIP exemption for loans extended by banks and their subsidiaries to all customers to facilitate purchases of property and casualty insurance policies (referred to as premium finance loans).45 Federal Reserve, FDIC, NCUA, OCC, FinCEN (October 5, 2020), Order granting an exemption from customer identification program requirements implementing section 326 of the USA PATRIOT Act, 31 U.S.C. Five-Year Retention for Recorded as Particular At . Therefore, a bank may arrange for a third party, such as a car dealer or mortgage broker, acting as its agent in connection with a loan, to verify the identity of its customer.47 Such third-party arrangements are contemplated in FinCEN, Federal Reserve, FDIC, NCUA, OCC, OTS, Treasury (April 28, 2005), Interagency Interpretive Guidance on Customer Identification Program Requirements under Section 326 of the USA PATRIOT Act, Customer notice FAQ #2. 25090, 25103. FFIEC Bank Secrecy Act/Anti-Money Laundering InfoBase, Assessing Compliance with BSA Regulatory Requirements, An identification number for a U.S. person is a taxpayer identification number (TIN) (or evidence of an application for one consistent with, OCC, Federal Reserve, FDIC, OTS, NCUA, FinCEN (May 9, 2003), , Such third-party arrangements are contemplated in, Federal Reserve (December 5, 2013), SR 13-19 , Developing Conclusions and Finalizing the Exam, Risks Associated with Money Laundering and Terrorist Financing, Customer Identification Programs for Banks, Savings Associations, Credit Unions and Certain Non-Federally Regulated Banks, Third Party Relationships: Risk Management Guidance, Third-Party Relationships: Frequently Asked Questions to Supplement OCC Bulletin 2013-29, Meeting the Financial Needs of Customers Affected by Hurricane Harvey and its Aftermath, Supervisory Practices Regarding Banking Organizations and their Borrowers and Other Customers Affected by a Major Disaster or Emergency, Examiner Guidance for Institutions Affected by a Major Disaster, Agencies Issue Supplemental Statement on Supervisory Practices Regarding Financial Institutions and Borrowers Affected by Hurricane Sandy, Beneficial Ownership Requirements for Legal Entity Customers, Purchase and Sale of Certain Monetary Instruments Recordkeeping, Foreign Correspondent Account Recordkeeping, Reporting and Due Diligence, Private Banking Due Diligence Program (Non-U.S. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention The procedures must enable the bank to form a reasonable belief that it knows the true identity of each customer and be based on the banks assessment of relevant risks, including: For purposes of the CIP rule, an account is a formal banking relationship established to provide or engage in services, dealings, or other financial transactions, including a deposit account, a transaction or asset account, a credit account, or other extension of credit. This appendix is provides as adenine summary record. Also excluded from the definition of customer are financial institutions regulated by a federal functional regulator or a bank regulated by a state bank regulator, governmental entities, and publicly traded companies as described in 31 CFR 1020.315(b)(2) through (b)(4).12 31 CFR 1020.100(b)(2). The CIP must contain account-opening procedures detailing the identifying information to obtain from each customer.13 31 CFR 1020.220(a)(2)(i). A bank using non-documentary methods to verify a customers identity must have procedures that set forth the methods the bank uses.26 31 CFR 1020.220(a)(2)(ii)(B). The CIP must include procedures for providing bank customers with adequate notice that the bank is requesting information to verify their identities.39 31 CFR 1020.220(a)(5)(i). (31 CFR 1010.415), Additional records to be maintained by prepaid access providers and sellers to collect and retain certain transactional records relating to prepaid access. The BSA establishes recordkeeping requirements related to various types of records including: customer accounts (e.g., loan, deposit, or trust), BSA filing requirements, and records that document a bank's compliance with the BSA. These BSA record retention requirements are independent von and in addition the record retention required under other domestic. PDF Appendix P: BSA Record-Retention Requirements These BSA record retention requirements are independent of and in addition to record retention requirements under other laws.
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