FFIEC updates BSA/AML examination manual

Agency Rule-Making & Guidance FDIC Federal Reserve OCC FFIEC NCUA Bank Secrecy Act Financial Crimes Bank Regulatory Anti-Money Laundering

On August 2, the Federal Financial Institutions Examination Council (FFIEC) updated its Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual, which provides examiners with instructions for assessing a bank or credit union’s BSA/AML compliance program and adherence to BSA regulatory requirements. The revisions include updates to the following sections:

• Special Information Sharing Procedures to Deter Money Laundering and Terrorist Activity
• Due Diligence Programs for Correspondent Accounts for Foreign Financial Institutions
• Due Diligence Programs for Private Banking Accounts
• Prohibition on Correspondent Accounts for Foreign Shell Banks; Records Concerning Owners of Foreign Banks and Agents for Service of Legal Process
• Summons or Subpoena of Foreign Bank Records; Termination of Correspondent Relationship; Records Concerning Owners of Foreign Banks and Agents for Service of Legal Process
• Reporting Obligations on Foreign Bank Relationships with Iranian-Linked Financial Institutions

The FFIEC noted that the “updates should not be interpreted as new instructions or as a new or increased focus on certain areas,” but rather are intended to “provide information and considerations related to certain customers that may indicate the need for bank policies, procedures, and processes to address potential money laundering, terrorist financing, and other illicit financial activity risks.” In addition, the Manual itself does not establish requirements for financial institutions, which are found in applicable statutes and regulations but rather reinforce the agency’s risk-focused approach to BSA/AML examinations.