Workshop On BSA/AML/OFAC Risk Assessments - Are you Doing them Correctly

The seminar highlights BSA/AML/OFAC risk assessments. The areas of focus outlined in this session are based on best industry practice, supervisory experience and cover the major components of an effective BSA risk assessment program that audit focuses on. The instructor will look at these areas and the specifics of each area as it pertains to BSA compliance.

This Bank Secrecy Act risk Assessment training will emphasize BSA best practices that are being acknowledged and recognized by regulators and examiners and will discuss each risk assessment area. The areas covered in the session:

• Implementing BSA risk assessment
• Assessing policies and procedures for risk assessments
• Comprehensive risk assessment review for BSA / AML / OFAC
• Review of risk assessment matrixes
• Determining effectiveness and thoroughness of risk assessments
• Performing risk assessments

Financial institutions are required to be compliant with BSA rules and regulations. Such compliance needs to be well documented and consistent to ensure financial institutions avoid BSA violations and implications. Financial institutions’ BSA Programs must have adequate risk assessment policies and procedures, monitoring programs, training programs, qualified employees overseeing the BSA daily operations and independent testing programs. An effective BSA risk assessment program will ensure that all areas are being evaluated for risk appropriately and being monitored on a routine basis. Having a strong BSA risk assessment program will ensure that financial institutions are proactive in assisting the Bank in mitigating risk that can negatively impact its strategic and business plans for growth, development, and compliance.

All financial institutions have some level of risk to money laundering, terrorist financing, or financial fraud. The cornerstone of any good anti-money laundering (AML) compliance program is an assessment of these risks in order to develop strategies to manage and mitigate them.  The principle of the risk-based approach is that resources are directed congruently with priorities so that the greatest risks receive the highest attention.

Risk assessments are the foundation of a BSA/AML Program. The purpose is to identify the BSA/AML risk profile and use the results to apply appropriate controls to mitigate risk. Steps to identify specific risk categories, such as: customers, products, services, and geographies and quantify the specific risk categories.

An Office of the Treasury that administers and enforces economic and trade sanctions based on U.S. foreign policy objectives and national security goals against targeted: Foreign countries and regimes, Individuals, Entities, and Practices. The sanctions programs administered by OFAC require transactions, accounts and/or other property to be blocked or rejected; depending on the specific program requirements. OFAC can assess Civil Money Penalties (CMPs) for processing or engaging in an apparent violation of a U.S. sanctions program. OFAC operates under a clause of strict liability. If a sanctioned transaction is processed, there is a violation of law. When determining whether a CMP is appropriate, or in calculating the CMP amount, OFAC reviews the existence, nature, and adequacy of the bank’s OFAC compliance program, including the views of the institution’s regulator.

Register yourself for this brainstorming session now- BSA/AML/OFAC Risk Assessments - Are you Doing them Correctly