It is being requested from some examiners that we show them an independent test of the S.A.F.E. Act. Trying to find out what others do on this, how do you test?. We are a small bank (less than 100 mil) with only a few MLOs that have been around forever and it's never been an issue but now it seems to be. Any suggestions?!?!?!?

Start with the exam procedures from your regulator.

Annual independent testing is a requirement of the act.

You must have an independent test of your MLOs. That does not mean that you must hire a third-party to conduct it. You can have a bank employee conduct it provided they are independent of the function (not an administrator, not an MLO, etc). In our bank, I (compliance) conduct the independent test because HR is the administrator and I am not an MLO.

I'm a co-administrator at my bank; we've added a SAFE Act audit to our normal compliance auditor's schedule.

^^^ Ditto.

Thanks everyone! Yes I think it may be time to add this to our compliance audit schedule so that it gets reviewed every year and there will be no question from examiners whether we do it or not.

Yes I think it may be time to add this to our compliance audit schedule so that it gets reviewed every year

Just a FYI. An annual review has been required by the regulation since it was implemented. See section 104 of your agency's regulation.

(f) Provide for independent testing for
compliance with this subpart to be
conducted at least annually by bank
personnel or by an outside party;

This is included in our external compliance audit as well.

Included in our compliance audit schedule each year. We use the exam procedures.