In a recent exam, it was mentioned that we should be checking non-customers who we cash an on-us check for potential matches with the requests. I was wondering what other people are doing for this? How would we obtain an accurate ID number without forcing them to provide proper documentation when cashing the check?

Was there any citation to the 314a instructions? It would have to be a transaction for which you already have a recordkeeping requirement that includes the name of the payee. Unless it is one that trips a CTR filing, I don't see that you'd have the information.

What I was told was in reference to the FFIEC Exam Manual, which can be found on page 92 of the manual under "Search Requirements":

"financial institutions must search their records for current accounts, accounts maintained during the preceding 12 months, and transactions conducted outside of an account by or on behalf of a named suspect during the preceding six months."

"Transactions outside of an account" is very narrowly defined in the 314(a) instructions, and refers only to transactions with certain recordkeeping requirements. I recommend obtaining a copy of those instructions and sharing them with the examiner.

You might also read FAQs Concerning the 314a Process from Feb 22, 2013. Read #5 and #13.

Log into the 314a website to find the FAQs.

I am embarrassed for your examiner...

OFAC compliance is "risk based." There is no "violation" if you do not check the list, so you check the list at the pulse points when your judgment tells you it is appropriate.

314(a) compliance is "rules based." FinCEN directs your bank to look at certain things. If you fail to look at them, it's a violation. If you look at additional pulse points it's a sure indicator that your bank did not read the instruction on the bottom of the boot.

If you did get a "hit" on the payee of an on-us check and notified FinCEN then you get a subpoena for documentation, what documentation is it that you have? None.

You have wasted your time. You have wasted their time. The want the bank where the account is actually located to tell them they have a hit; they are looking for the institutions where the individual has connections that would be supported by CIP information and, possibly, other documentation that could be reached by subpeona.

I will not spell it out further as we generally refrain from discussing 314(a) in public fora... Read the instructions located on the secure portion of the FinCEN website. Follow the instructions.

Hardest of all, develop the ability to identify examiners who really have no comprehension of what they are talking about.

Read the FAQs as *W*W* suggested, found my answer. Thanks for the guidance.

Ken, I completely agree. Wasted a lot of our time searching for requirements that don't exist. The worst part is the examiner was a subject matter expert.

Which regulatory agency and what region?

FDIC Chicago region.

Okay - that's the same region that decided a few years back that banks had to put existing insurance and property tax information on the Good Faith Estimate for REFINANCE and EQUITY loans.

Yeah - so bankers had to ask their customers to tell them how much they paid for their homeowners insurance in order to provide them a Good Faith ESTIMATE of how much they will need to pay for their homeowners insurance.

Must be something in the water....