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#1061718 - 10/09/08 02:20 PM Exempt List
SueBonen Offline
New Poster
Joined: Mar 2005
Posts: 20
Massachusetts
Does the regulation require the Board to approve the exempt list? We never have, I don't see it anyway, I have never been written up for not. Our Senior VP-Internal Auditor approves it. Our policy does not state specifically who approves the list either.

I am in MA, and the state exam request list asked for date the Board last reviewed and approved the exemptions.

I have a Board meeting next Thurs. Should I put on agenda? Am I required? Or am I reading to much into the wording of the sentence.

Thank you! Susan

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#1061840 - 10/09/08 03:15 PM Re: Exempt List SueBonen
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Board review and approval of the list of exempt persons is not a requirement of law or regulation. As for whether it is a "best practice," my opinion is an emphatic "No."

My perspective is that it reduces the board to a rubber stamp and it's a shallow attempt at an upward delegation of responsibility.

What on earth would a "No" vote from a board member mean?

Please note, I'm not a representative of MA's state regulatory agency and it's their opinion you're really interested in. Call them and ask if they will criticize you for not doing this and, if they will, set about doing it. If you're short on entertainment for the day, ask them what the point is and whether the board should also vote on your list of high risk customers too. (Just kidding about the last part, they might say "yes.")
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#1061871 - 10/09/08 03:25 PM Re: Exempt List Elwood P. Dowd
SueBonen Offline
New Poster
Joined: Mar 2005
Posts: 20
Massachusetts
Thank you Ken. I am MOST pleased with your reply. Will do.

Susan

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#1061883 - 10/09/08 03:28 PM Re: Exempt List SueBonen
Maytagman Offline
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Maytagman
Joined: Jun 2008
Posts: 285
South
This thread makes me rethink a part of our periodic reporting to the Board. Our report to the board includes a list of newly exempted names, just as an FYI, to explain what has been done in that arena since the previous report. I wonder if that constitutes tacit board approval, since the board does not take issue with the information provided in that section.

BTW, I've found in other areas that the state's understanding of BSA issues is very different from the federal regulator's understanding. Terminology used in the state's request list has been confusing and has not always applied to the situation or the requested item. I just provide them the closest thing I can think of that they are asking for, and they haven't complained. For that request item, I would simply provide them a copy of the exempt list, and not mention that it was or was not board-approved. If they later came back and said "Where's your board approval?" that's when I would explain that nothing in regulation or FI policy requires board-approval.
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#1062373 - 10/09/08 08:26 PM Re: Exempt List Maytagman
P*Q Offline

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P*Q
Joined: May 2001
Posts: 8,458
Somewhere
We report in our risk assessment the number of exempt customers we have, the types of customers exempted but we don't actually have the board "approve them".

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#1062404 - 10/09/08 08:54 PM Re: Exempt List P*Q
WonderWoman Offline
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WonderWoman
Joined: Mar 2007
Posts: 2,108
gone fishin'
I report the newly exempted customers and renewed customers once a year (typically April after I've renewed everyone). Mainly as an FYI. The Board does not "approve" them. & I count it as training for the Board cuz I have a small paragraph explaining the exempt process.

I'm a tiny bank though too & we don't have that many ... so it's not burdensome here. At my other bank - we never reported this information.
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#1072062 - 10/28/08 06:05 PM Re: Exempt List WonderWoman
SueBonen Offline
New Poster
Joined: Mar 2005
Posts: 20
Massachusetts
thank you everyone. I forgot I have them in the Risk Assessment, which the Board approves. So I think I am all set. They arrive tomorrow! Whew!

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