BSA Reports & Training for CU Officials Presented by Rusty Vellek NCCO, NCRM, BSACS Compliance Officer Transportation FCU
Disclaimer I am not an attorney. Nothing in this presentation should be construed as legal advice. Instead, we’ll discuss some more practical aspects of BSA reports and training for officials.
Topics We Will Discuss • Responsibilities under BSA: – Board of Directors, Management & Staff – Supervisory Committee • Reporting to the Board of Directors (or designated committee).
Topics We Will Discuss • Training for Officials: – Differences between training Staff & Officials – In house training vs. other alternatives – Combining Board training with policy reviews – Sample training presentation slides
Poll Question #1a,1b • Does your credit union separate BSA training for officials from training for staff? – Yes – No • Is the Supervisory Committee included in BSA training? – Yes – No
Board Responsibilities • Review and approve BSA and OFAC policies (generally annually). • Appoint BSA/OFAC Compliance Officer(s) and ensure that adequate resources are provided. • Review periodic BSA reports. • Participate in training (generally annually).
Mgmnt/Staff/Supervisory Comm • Management & Staff are generally responsible for executing Board-approved BSA/OFAC programs. • The BSA/OFAC Compliance Officer(s) should have specific responsibility and authority under the policies. • Supervisory Committee responsibility as part of their general oversight function.
Reporting to your Board • Regulatory requirements are fairly general – NCUA Rules and Regulations Part 748.1(c)(4) requires that: “ The management of the credit union must promptly notify its board of directors, or a committee designated by the board of directors to receive such notice, of any SAR filed.”
When to report SAR filings “. . . must promptly notify . . .” is generally interpreted to mean at the next monthly meeting of the Board (or committee).
How Much to Report? • The regulations are not very specific in this regard • Caution: SAR filings and investigations are strictly confidential -- keep this in mind when preparing your reports. – Especially important if suspect is an official, employee, friend or relative – you must not tip them off.
If suspect is a director . . . • The suspect may not be notified of the SAR filing or investigation, but the other directors or committee members must still be notified. • How you handle that would depend in large part on the particular situation at your credit union.
What we do at TFCU • We have a standard monthly report template that includes: – Number of CTR filings for the month & YTD – Number of SAR filings for the month & YTD – A brief summary sentence or two describing any SARs filed, leaving out names, account numbers or other identifying information
SAR Description Samples • Member made cash withdrawals of $5,000 each [totaling $30,000] on six consecutive business days. [Structuring] • The member tried to negotiate a fraudulent “Certified Check” drawn on a Federal Reserve Bank. [Check Fraud/Counterfeit Check]
Other Reports to the Board • BSA/AML/OFAC Risk Assessment(s) & Policies • You should also provide your board with additional reports as needed to keep them informed of new developments or changes to your BSA programs, regulations, risk parameters, etc.
Training for Officials
Some Training Objectives • Meet regulatory requirements [this should really be last] • Educate officials about BSA requirements in general, and their responsibilities in particular • Inform officials about your programs, strengths and areas for improvement, any resource needs (get their support!)
Board vs. Staff Training • Generally, your Staff needs more specific, detailed technical training – the “how-to” practices suited to their roles. • Most officials do not need or want to be involved with that level of detail.
Officials vs. Staff Training • The Board needs a good understanding of BSA and related laws and regulatory requirements in order to ensure that they – and the credit union – are fulfilling their responsibilities under BSA. • Including the Supervisory Committee helps ensure that everyone is “on the same page.”
Board Responsibilities • Review and approve BSA and OFAC policies. • Appoint BSA/OFAC Compliance Officer(s) and ensure that adequate resources are provided. • Review periodic BSA reports. • Participate in training.
Some Training Options • Live in-house training vs. alternatives: – On-line training (in-house or outside) – NAFCU or other association training events – Outside consultants, instructors – Combinations of the above • Plenty of resources available: – NAFCU, FinCEN, NCUA, etc.
How to decide? • Factors guiding how you approach Board training may include: – Your credit union’s size, FOM, risk profile, complexity of operations – Your credit union’s culture – Board and management structure and preferences – Their previous BSA training – Your training objectives – To quiz or not to quiz . . .
Poll Question #2 • How does your credit union conduct BSA training for officials? –On-line training –Outside training events –In house using outside presenter –In house presented by staff –Combination of methods
In-House Training Tips • Some tips if you are going to conduct training for your Officials in house: –Define your specific training objectives. In addition to those already mentioned, for example: • Do you need approval for new program or policy changes? • Any particular issues to address, resolve? • Any audit or exam findings?
More In-House Tips –Consider the time allotted – an agenda item at a Board meeting vs. separate session. –Consider the size of the group, location.
More In-House Tips –Use of PowerPoint slides • Keep them brief • Avoid a lot of clutter, fancy graphics or effects – those mostly just distract from the material • Don’t just read them!
More In-House Tips –NEVER apologize in advance of your presentation [“I know this is boring, but . . .”] –Shape your presentation to your style and personality, not the other way around – if you’re not good at telling jokes, DON’T!
More In-House Tips – Know your material – be prepared for questions, including the “I’ll find out for you” kind. • Make a note of any such questions and move on . . . And be sure to FOLLOW UP ! – Remember that your audience is on your side and wants you to do well. Relax, remember to breathe and let it flow.
Training + Policy Review • This works for us: – At TFCU, we combine the Officials’ BSA training session with the annual review and approval of our BSA/AML/OFAC risk assessment and policy package. – Materials are sent out well in advance. – Training session is at the beginning of a regular board meeting, followed by adoption of the policies.
Advantages of this Approach • Great chance to relate training to policies – Can stimulate good questions, better understanding by officials • Tends to lead to better informed discussion and votes • Helps officials develop confidence in your BSA programs
Poll Question #3 • Does your credit union combine BSA related training with review & approval of the BSA Risk Assessment and Policies? –Yes –No –Not yet, but I like the idea
Sample Presentation • Following are some slides that I used for recent BSA Training for TFCU Officials. • The training was conducted at the beginning of the Board’s regular meeting, with policy review/approval afterwards. • The session was conducted in our Board Room with most officials present in person, some by phone.
Sample Presentation • We have experienced officials – most members have some familiarity with BSA • The session was scheduled for 15-20 minutes, plus time for questions.
Sample Presentation • The BSA policy package, including policies, risk assessment and a transmittal letter, were sent out well in advance of the meeting, along with the training slides. – Sending the slides out in advance makes it easier for any official attending remotely to follow along.
2015 BSA/AML/OFAC Compliance Training For Transportation FCU Officials Presented by Rusty Vellek, BSACS, NCCO, NCRM TFCU Compliance Officer
The Bank Secrecy Act The Bank Secrecy Act is a combination of statutes enacted to help in the investigation of money laundering, tax evasion, terrorist financing , and various other criminal activities. BSA was updated by the USA PATRIOT Act in October, 2001, following the 9/11 terrorist attacks.
Topics • Bank Secrecy Act ( BSA ) – including the USA PATRIOT Act [ U niting and S trengthening A merica by P roviding A ppropriate T ools R equired to I ntercept and O bstruct T errorism Act of 2001] • Member Identification Program ( MIP ) • Member Due Diligence ( MDD ) • Office of Foreign Assets Control ( OFAC ) • New Developments – Current Issues
Recommend
More recommend
