The owner of an insurance agency is seeking to establish his main operating account with us. In addition, he would like to open a general savings account for a trust that was established for their profit sharing/401(k) retirement plan. They have approximately three employees. The purpose of the general savings account is to collect employee retirement account transfers, deposit employee salary deferrals, deposit employer contributions, and to make disbursements based on employee investment directions or requested transfers. Checks deposited will be payable to "ABC Retirment Plan FBO employee." Are there any BSA/AML considerations for this type of account?

Who is the current custodian of the 401K plan for this company and why would these funds go in and out of an unrelated account that the company controls from a fiduciary standpoint?

I don't know about BSA/AML but I would absolutely have a written agreement in place clarifying that you are not acting as the plan administrator and assume no fiduciary responsibility over the plan, the plan documents, tax reporting or investment choices. They should also affirm that they have a plan administrator that has properly established and managers the plan.

Or just say no.

According the documentation provided, the plan is an employer sponsored, self custodianed, and self trusteed plan. The plan requires no additional 401(k) or trust department services. The Trustee (the trustee and employer are one in the same) will use the account as a temporary holding account of employee retirement funds prior to disbursing the funds in accordance to the direction of the plan participants.

A QRP is a trust and it needs a checking account just like any other trust does. You need documentation of its existence and the signers' authority. In the mechanism that I am familiar with, the plan's assets are held elsewhere and funds are transferred to the checking account only when they are paid out to plan participants. (It's effectively zero balance account and no interest is paid, partially because it would screw up their accounting.)

As far as anything "special" for BSA purposes, nothing that I'm aware of.

Thank you once again for your guidance!