- Today’s BSA/AML challenges demand realtime, intensive focus and in-depth knowledge.
- Each bank and depository institution must
have a “qualified” Bank Secrecy & Anti-Money Laundering Executive.
- Today’s BSA/AML official must possess management and operations skills beyond mere knowledge of laws and regulations .
- The BSA examination has asked much more of
today’s financial institutions, and has expected much more from the BSA program than ever before.
- The interagency exam takes a risk-based
approach, expecting financial institutions to understand their appetite for, and exposure to, risk and implement practices to mitigate risks.
- Community banking is vastly different from regional, super-regional, and multinational
- Knowing the customer and knowing the banking regulations are no longer enough.
There are numerous workshops, seminars,
and conferences dealing with current money
laundering related events, from politics to
program deficiencies to “PEPs.” There are
telephone and web-based programs that
discuss the nuances of new regulations. There
are symposiums to deliberate the impact of
world events affecting BSA enforcement. But
this is the first and only SCHOOL designed,
developed, and presented by today’s bankers
with subjects for today’s bankers. And it’s the
first such event offered in an academic setting
to today’s bankers.
The 2008 BSA School curriculum
incorporates changes based on comments
from 2007. The program reflects more
relevant, topical issues and is focused on more
hands-on, problem-solving discussions. The
2008 agenda contains more “advanced” and
emerging topics for seasoned BSA officials in
the school syllabus, and reserves its treatment
of BSA fundamentals for case study and
interactive knowledge-sharing.
- More opportunity for in-depth thinking and deliberation
- A learning environment focused on how to think, reason, process, and analyze relevant information
- A proactive and positive approach to interactive problem-solving
- Exercises and group discussion focused on shared knowledge and experience
- More hands-on value than traditional question-and-answer sessions
- A way to “validate” what you know and how you use it – knowledge and the application of knowledge
- Experienced faculty discussing issues in an engaging and thoughtful environment
- Discussion, regulatory requirements and step-by-step guidance on new and emerging BSA/AML matters
- Practical tips on developing and refining management skills to deal with AML challenges
- “Credentials” from an academic approach – shared knowledge and “take-aways”
- The perspective, skill-set, tools, and understanding to help deal with pertinent issues
- A unique opportunity for peer exchange and interactive discussion
Real-life solutions and “best practices” for meaningful program management
- Valuable networking opportunities
- Value-added benefits, including learning how to:
- Build, maintain, and refine an effective risk-based BSA/AML program
- Research and find answers to everything from fundamentals to technical questions
- Recognize and respond to red-flag indicators
- Analyze and resolve issues relating to your institution’s program
- Apply an analytical approach to determine the best course of action
- Identify and weigh the risks relating to money laundering
- Survive the intensified exam environment
— This session highlights the significance of each of the major BSA/AML-related requirements and the implications of each of the requirements relative to the bank’s management of BSA/AML risks.
— Each bank must have in place a formal, written BSA/AML program. This session will review the basic requirements, together with increasing expectations that have arisen on examination. The session examines the key elements of the BSA/AML program from both a management and compliance standpoint.
— Exam expectations have raised the bar for the bank’s OFAC program. This session highlights the requirements of foreign asset laws and discusses the elements of an effective risk-based management program; including the preparation of the OFAC risk assessment and how a bank’s program may impact the determination of a penalty should an OFAC violation occur.
— With the Memorandum of Understanding between OFAC and banking agencies, banks are subject to even more rigorous scrutiny. This session will consider industry practices and the impact from OFAC pronouncements, including very substantial changes with respect to North Korean sanctions.
— Discussion of common violations being identified on examination, including those related to CTRs, exemptions, monetary instrument sales, funds and wire transfers, suspicious activity reporting, and OFAC.
— The Identity Theft Red Flag Guidelines require banks to develop procedures to detect identify theft and suggest that to some extent this can be accomplished through a bank’s CIP procedures. This session will address whether your customer identification program is up-to-date and whether CIP can be used to fully address identity theft procedure requirements and will identify exceptions to CIP that do not apply to identity theft requirements, as well as the broader scope of the identity theft requirements.
— As financial institutions cope to find the necessary resources to address increasing regulatory expectations, relief is sometimes sought in the use of the automated systems. What do these systems do? Do they all have the same functionality or are there significant differences? What kinds of questions should be raised before the system is purchased? Why it is important to set, monitor, and respond to customer parameters and “anomaly” filtering criteria very, very carefully?
— This session will describe the information provided by FINCEN on the major increase in mortgage fraud-related SARs. We will also discuss the two types of mortgage fraud and how they are perpetrated, as well as the concept of money laundering and structuring through the mortgage process.
— The “benefits” of FinCEN’s proposed new exemption rules that are outlined in the press release will be discussed as well as the “rest of the story.” We will discuss the proposed requirements for yet another risk assessment, in this instance to determine eligibility for Phase II exemptions. We will also discuss legislation in process to clarify that banks that serve MSBs are not responsible for those entities’ compliance with anti-money laundering laws and any other applicable Bank Secrecy Act (BSA) requirements. Other changes related to new forms and FinCEN rulings will also be addressed.
— This session will identify the best time to prepare for your next exam and what to do if the exam is already at hand. It will look at important considerations in responding to the exam request list and managing the communications between the examiner and bank, including how to set up an issue tracking system to reduce the risk of repeat examination issues.
— The exam manual provides that procedures should allow the bank to differentiate between lower and higher risk customers at the time of account opening. Beyond risk-based CIP, customer due diligence and enhanced due diligence means understanding the customer’s expected and lawful business activity and financial transactions and establishing a program to identify and deal with customer BSA/AML risk.
— This session focuses on three specific high-risk groups. Why is each group viewed as high-risk? Since the exam manual makes clear that banks are not to treat all members of a high-risk group the same, how can a bank identify low-risk versus high-risk customers within a high-risk group? What should a bank be doing once a truly high-risk customer is identified?
— This session highlights the basic premise of money laundering and terrorist financing, along with the banker’s role in combating them. The stages of money laundering and “reverse” money laundering are discussed, along with key elements of the process by which the customer tries to disguise or conceal the ownership or control of the funds, and the true source and origin of assets.
— The reporting requirements of Title 31 are discussed, including the managerial aspects of CTR filing (not just how to complete the form). The establishment and maintenance of exemptions are addressed in detail. This session also introduces participants to filing CMIRs and those pertaining to Foreign Bank Account Reports (“FBARs”).
— The Bank Secrecy Act is designed to create paper trails that are useful to law enforcement. In addition to the reporting aspects of cash and certain cross border transactions, the regulations provide for extensive recordkeeping. This session explains the general rules of Title 31, along with specific rules pertaining to records arising from the USA PATRIOT Act: general recordkeeping standards; special rules for banks and for non-bank financial institutions; 314(a) and 314(b); timely retention and retrieval of customer records; and program for handling legal orders & requests.
— As one of the recordkeeping requirements, the funds transfer rule is both complex and easily automated. This session describes the coverage and capture requirements, along with the impact of self-imposed restrictions.
— This “anti-smurf” recordkeeping requirement has evolved overtime. This session discusses the coverage and recordkeeping aspects, along with the advisability of self-imposed restrictions.
— The bank’s risk assessment should help identify strengths and weaknesses in the BSA/AML and OFAC programs and help prioritize the bank’s efforts. It also provides an integral link with customer due diligence and activity monitoring. This session will focus on the current environment and expectations, and will discuss revising the risk assessment and identifying the need for enhancements to the BSA/AML and OFAC programs.
— “Know Your Customer” has been effectively removed from the examination procedures, replaced by “Customer Due Diligence.” This replacement phrase continues to reflect the concept that identifying and verifying customer identity through CIP alone is not enough. This session helps identify the circumstances under which CDD needs to be a part of one’s compliance efforts.
— This session addressees the fundamental SAR requirements, with emphasis on where banks run into difficulties because they don’t fully understand the requirements. We will also discuss “SAR Review” guidance, trends, and key issues from the exam manual. The discussion will include identifying money laundering red flags and documenting SAR/No-SAR decisions.
Compliance, legal, audit, risk management and operations employees and managers; trainers, internal control specialists, bank security officers and risk managers; BSA and AML specialists – from experienced veterans to new recruits; serious professionals with banking background looking for “in-depth” knowledge and articulation of the issues.
Phillips G. Gay, Jr., CAMS, CRCM and CRP, is the principal of the Compliance Advisory Service, Coral Springs, FL, and is a frequent speaker at state and national compliance programs, and senior advisor to a national compliance training concern. He was a former Senior Vice President of a community bank and former Vice President of regulatory compliance for First Union Corporation (now Wachovia) and a Senior Vice President for Bank of North America. Gay has served in an advisory capacity on numerous government and American Bankers Association (ABA) committees dealing with regulatory compliance matters.
Participants are required to make their own reservations. The seminar hotel is The Wynfrey which is located in Birmingham. The room rate is $145 for a single or double room. Please reference The Alabama Bankers Association room block to get the group rate. To make reservations, call The Wynfrey at (205) 987-1600 or (800) 996-3739. The cut off date for room reservations is November 3, 2008. After November 3, 2008, reservations will be accepted on a space available basis.
The registration fee for this two-day program is $525 before November 1, $575 after November 1 and $625 after December 1 for The Alabama Bankers Association members and $825 before November 1, $875 after November 1 and $925 after December 1 for nonmembers. Fees include instruction, materials, lunch and refreshments. No written confirmation of seminar registration will be sent from the ABA. Full registration will be refunded if a cancellation is received on or before ten days prior to the meeting. If date of cancellation is less than ten days business days prior to the meeting, one-half of the registration fee will be retained. No refunds will be given for cancellations after December 1. Substitutions are welcome. All cancellations and substitutions must be received in writing.
All students receive a certificate of completion and a comprehensive course textbook, with both teaching and take-home reference materials. The course book will include valuable information on each subject, along with useful tools, case study examples, sample program materials and useful reference materials. Each student will also receive a free CD based supplemental guide containing regulatory guidance and reference materials in an easy-to-use format.
Dress for the seminar is business casual. To ensure your comfort, please bring a jacket or sweater as we cannot always control the temperature of the meeting rooms.. If you need additional information, contact The Association office at (334) 834-1890 or by email at info@alabamabankers.org.
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