For BSA/AML compliance, do all loans (or loans > 10,000) need a purpose stated on the application to comply? We require the lenders to insure that the purpose of the loan is stated per our internal lending procedures. However, I want to know if the purpose is left incomplete on the application, is it also a BSA/AML finding?

It doesn't necessarily have to be stated on the application form itself if you have it documented somewhere else. The key is to have it documented in a fashion that you can demonstrate compliance. In other words, don't lose it.

It applies to extensions of credit over $10,000 unless it is secured by an interest in real property.

Does the >$10,000 threshold apply to loans only, or does it apply to lines of credit as well?

A line of credit is an extension of credit, so the answer is yes.

As noted, the regulation does not require a statement of purpose on all loans or stipulate where the information should be recorded. However, if your own policy requires it on all loans then a failure to obtain it on any loan could/should be listed as a criticism in a BSA/AML examination.

"Personal" or "business" is not a statement of purpose. The description should be adequate to allow a reviewer to "chase proceeds" and compare the borrower's use of the funds to the stated purpose of the loan.