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 union’s 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
MSB education materials
FinCEN Regulatory Helpline

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. O’Donnell