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#583104 - 07/13/06 06:47 PM NAICS Codes for monitoring
Becky Offline
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Becky
Joined: Feb 2003
Posts: 216
Dallas, Texas
Question about using NAICS codes in the monitoring process. Do you have these codes at the account level, or at the customer/entity level?

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#583105 - 07/13/06 06:50 PM Re: NAICS Codes for monitoring
mck401 Offline
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Joined: May 2006
Posts: 1,168
Texas
Until a recent BSA seminar, I had never thought of using them for DDA Operations. As of yet, our organization does not use them.
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#583106 - 07/13/06 07:41 PM Re: NAICS Codes for monitoring
P*Q Offline

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P*Q
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Somewhere
We use them at the customer/entity level.

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#583107 - 07/13/06 08:09 PM Re: NAICS Codes for monitoring
Dip Offline
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Dip
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San Diego, CA
i would use them at the customer level
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#583108 - 07/13/06 09:03 PM Re: NAICS Codes for monitoring
MadisonCali Offline
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Joined: Jun 2006
Posts: 2,515
I'm sorry, I'm going to ask a stupid question...
what are NAICS codes?
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#583109 - 07/13/06 09:08 PM Re: NAICS Codes for monitoring
Elwood P. Dowd Offline
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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.
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#583110 - 07/13/06 09:09 PM Re: NAICS Codes for monitoring
devsfan Offline
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Joined: Jun 2004
Posts: 1,927
NYC
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.

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#583111 - 07/14/06 12:09 AM Re: NAICS Codes for monitoring
Dip Offline
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Dip
Joined: Mar 2005
Posts: 6,298
San Diego, CA
has anyone come up with a list of NAICS codes that they are considering to be high risk?
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#583112 - 07/14/06 02:07 AM Re: NAICS Codes for monitoring
Elwood P. Dowd Offline
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Elwood P. Dowd
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Next to Harvey
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.
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#583113 - 07/20/06 01:17 PM Re: NAICS Codes for monitoring
MackenzieS Offline
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MackenzieS
Joined: Jul 2002
Posts: 1,722
Oklahoma
Quote:

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




I have a list. If you will PM then I will be glad to share these with you. As Ken mentioned, just because the business falls into a "high risk" industry does not mean the business is necessarily high risk. This is just merely a tool to get you started in the long road of performing customer risk assessments on your customer base.
Last edited by MackenzieS; 07/20/06 01:18 PM.
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