Question about using NAICS codes in the monitoring process. Do you have these codes at the account level, or at the customer/entity level?

Until a recent BSA seminar, I had never thought of using them for DDA Operations. As of yet, our organization does not use them.

We use them at the customer/entity level.

i would use them at the customer level

I'm sorry, I'm going to ask a stupid question...
what are NAICS codes?

NAICS codes allow banks to identify customers by their industry. They were originally used by banks to identify concentrations of credit, but have proven useful in identifying potentially high risk customers for analysis. For example if you code customers at the CIF level by their industry and you need a list of all convenience stores, attorneys, etc. you can get one with a simple computer query.

Not a stupid question.

North American Industry Classification System. They are 6 digit codes that define the type of business and is a way that you could categorize your business accounts for potential AML risk. I prefer to look at the activity in all accounts as a better way to identifying risk, but that is a conversation for another time.

has anyone come up with a list of NAICS codes that they are considering to be high risk?

The codes do not/cannot identify high risk customers. They help you identify the customers whom you should evaluate. The revised examination procedures contain the starter list; e.g. attorneys, etc.