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#323107 - 02/28/05 12:53 PM "New" OCC requirements for BSA/AML Program
Kathleen O. Blanchard Offline

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Kathleen O. Blanchard
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The OCC wants our BSA program to be all encompassing. It presently contains he overarching BANK policies and procedures on BSA, AML, CIP, OFAC, 314a and b, investigating suspicious activity, etc. that each line of business much comply with and semi-high level information on investigations, 314a and b, etc.

What they want is going to take careful wording to avoid needing the board every time we change a departmental procedure in the bank. They want all line of business policies and procedures that carry out the program, including OFAC, to be part of the program. They want all BSA unit procedures - down to the level of what is done to research 314a requests - to be part of the program.

This is not a recommendation. They say we must have one document that can be picked up that explains in one place how our bank complies with BSA, AML, KYC, OFAC, Patriout Act, etc. in one place.

We will probably incorporate much of the line of business policies and procedures via appendices with language carefully stating what needs board approval. I don't want to get into a situation where a simple procedural change can't happen until the board meeting.

The line of business info would include departments instructions to their staff for OFAC, CIP, etc.

Less than a year ago, the OCC found our program to be satisfactory.
Last edited by kaybee; 02/28/05 02:21 PM.
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BSA/AML/CIP/OFAC Forum
#323108 - 02/28/05 01:30 PM Re: "New" OCC requirements for BSA/AML Program
Elwood P. Dowd Offline
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I think you have been victimized by doing too good a job; i.e. given the current emphasis on BSA they have to critcize something. I know of other national banks that don't have a BSA program anywhere near the sophistication level of yours, but they were not given the same target, only one higher than their current level.

There is no uniformity in what banks are being told, even if they have the same regulator. (Given that the OCC updated only a small portion of its published examination procedures, it's no great surprise that their examiners are offering inconsistent advice.) Another BOL poster shared a very sophisticated AML risk assessment with me the other day, but indicated it was not yet "perfected." I suggested that she should not make any attempt to perfect it, but to leave it "as is" to give the regulator something legitimate to talk about. I genuninely dislike games, but if I am forced to play I have no intention of losing.
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#323109 - 02/28/05 02:24 PM Re: "New" OCC requirements for BSA/AML Program
Kathleen O. Blanchard Offline

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The way this was presented was not the way you would expect a recommendation. This was presented in a "what were you thinking of, why do we have to figure out what you are doing at this bank" way. Very confrontational.
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#323110 - 02/28/05 04:12 PM Re: "New" OCC requirements for BSA/AML Program
Princess Romeo Offline

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We had a huge stack of training documentation for BSA/AML. During the exam, the OCC examiners criticized it because we did not have a "grid" of all employees with their job functions listed and then columns listing specialized training for each employee. The specialized training has to be "face to face" training with the use of specific forms and procedures applicable to that employee. Video training, training using PowerPoint and phone conference, etc., would not be "good enough."

They complained that the training records were "too confusing" and they want to see one overall document that accounts for all of it for all employees.

THEN - one examiner told us that on-line training was not good enough, and another examiner told us that we should be using MORE on-line training.

Deep breaths.....deep breaths....deep breaths...
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#323111 - 02/28/05 04:29 PM Re: "New" OCC requirements for BSA/AML Program
Kathleen O. Blanchard Offline

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Yes, we have to create a grid as well. It is under way. They have their marching orders. That much is obvious.
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#323112 - 02/28/05 04:40 PM Re: "New" OCC requirements for BSA/AML Program
Elwood P. Dowd Offline
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Opposite ends of the country, but you were both were told you needed a "grid" to reflect BSA training? Sounds like they may have exam procedures, they have just not made them public.
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#323113 - 02/28/05 04:45 PM Re: "New" OCC requirements for BSA/AML Program
Kathleen O. Blanchard Offline

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And with OCC examiners being reassigned due to failure to identify suspicious activity at Arab Bank, it will just get more interesting.
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#323114 - 02/28/05 07:29 PM Re: "New" OCC requirements for BSA/AML Program
Princess Romeo Offline

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The question I need to ask is that effective training is effective training. Whether it is documented on a "grid" or a ferris wheel doesn't change the effectiveness of the training itself.

Form over substance wins out again.
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#323115 - 02/28/05 07:47 PM Re: "New" OCC requirements for BSA/AML Program
thomasj Offline
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Pennsylvania
A couple of years back I did different training for different areas of the bank. Front line, deposit operations, wire, loan, finance, etc. I tried to tailor it to their function and get specific with procedures. I was told by an OCC examiner that my training was not sufficient because for example I did not cover CTR filing procedures with the accounts payable folks. He told me that everyone was to be trained on every aspect of BSA. We do online training now and it covers everything imaginable. When the OCC took a brief look at BSA during a safety and soundness exam last year, they were impressed with the training. I would love to ask one of them to take the exam, but that is kind of like poking a grizzly bear with a sharp stick......
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#323116 - 02/28/05 08:17 PM Re: "New" OCC requirements for BSA/AML Program
Princess Romeo Offline

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Thomasj - that's interesting because I had one OCC examiner tell me that for example, people in our wire processing department do not need training on CTR filing procedures.

Go figure....

BTW - it's okay to poke a grizzly bear with a sharp stick, but it has to be a very long sharp stick!!!!
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#323117 - 02/28/05 08:49 PM Re: "New" OCC requirements for BSA/AML Program
E.E.G.B Offline
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the sandy shore
Quote:

I suggested that she should not make any attempt to perfect it, but to leave it "as is" to give the regulator something legitimate to talk about.




Ken, this is something I bring up with my banks too. They're going to find SOMETHING, you might as well leave them something so they don't have to make stuff up. Just make sure you know about it before they do.
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#323118 - 02/28/05 09:48 PM Re: "New" OCC requirements for BSA/AML Program
thomasj Offline
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Pennsylvania
Quote:

Quote:

I suggested that she should not make any attempt to perfect it, but to leave it "as is" to give the regulator something legitimate to talk about.




Ken, this is something I bring up with my banks too. They're going to find SOMETHING, you might as well leave them something so they don't have to make stuff up. Just make sure you know about it before they do.




I agree with this 100%. I know that we have a better grip on BSA than many banks in our peer group. After talking with other BSA officers at conferences and seminars it is quite apparent that in many cases if there is low hanging fruit the examiner will pick it and move on but if there is none they will start climbing the tree.....
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#323119 - 02/28/05 10:49 PM Re: "New" OCC requirements for BSA/AML Program
Kathleen O. Blanchard Offline

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In our case, there was plenty of little stuff to criticize, so I have to disagree on this one. We have done a lot but have some loose ends, plenty that could be improved. I had a BSA officer quit mid-October and leave many things incomplete so we were not where I would like to have been. But still doing much more than others.

They are totally covering their own you know whats, don't want to have to ask for departmental policies that carry out the corporate program, they want a write up on each and every situation that comes to our attention with a conclusion in a file (even the stuff our AML system finds that one look at a check etc. shows it is ok), and so forth.

There has been some implication that being 60 miles from NYC raises the expectations.

These people aren't moving on to anything. They are making sure they don't end up transferred due to missing anything like the Arab Bank examiners.
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