Procedures for Monitoring BSA Compliance -12 CFR 21.21 requires every national bank to have a written, board approved program that is reasonably designed to assure and monitor compliance with the BSA. The program must, at a minimum:

1. provide for a system of internal controls to assure ongoing compliance;
2. provide for independent testing for compliance;
3. designate an individual responsible for coordinating and monitoring day-to-day compliance; and
4. provide training for appropriate personnel. In addition, the implementing regulation for section 326 of the PATRIOT Act requires that every bank adopt a customer identification program identification program as part of its BSA compliance program.

Reports of Suspicious Activities - 12 CFR 21.11 requires every national bank to file a Suspicious Activity Report (SAR) when they detect certain known or suspected violations of federal law or suspicious transactions related to a money laundering activity or a violation of the BSA. A SAR filing is required for any potential crimes:

1. involving insider abuse regardless of the dollar amount;
2. where there is an identifiable suspect and the transaction involves $5,000 or more; and
3. where there is no identifiable suspect and the transaction involves $25,000 or more. A SAR filing also is required in the case of suspicious activity that is indicative of potential money laundering or BSA violations and the transaction involves $5,000 or more.

Links to BSA Related Statutes

• Financial Record Keeping and Reporting of Currency and Foreign Transactions - 31 CFR 103
• Foreign Assets Control Regulations (OFAC) 12 CFR 500
• Bank Secrecy Act - 31 USC 5311 - 5330
• USA PATRIOT Act

Institutions of Primary Laundering Concerns - Section 5318A of the Bank Secrecy Act, as added by section 311 of the USA PATRIOT Act, authorizes the Secretary of the Treasury to designate a foreign jurisdiction, institution, class of transaction, or type of account as being of "primary money-laundering concern," and to impose one or more of five "special measures."

• Imposition of Special Measures Against Banco Delta Asia
• Designation of Commercial Bank of Syria as a Financial Institution of Primary Money Laundering Concern - proposed rule imposing special measures against Commercial Bank of Syria
• Proposed Rules Imposing Special Measures Against Infobank and First Merchant Bank OSH Ltd - Determined to be financial institutions of primary money laundering concern
• Imposition of Special Measures Against Burma, Myanmar Mayflower Bank, and Asia Wealth Bank
• Revocation of Designation of Ukraine as Primary Money-Laundering Concern - proposed rule imposing special measures against the country of Naur
• Designation of Nauru and Ukraine as Primary Money Laundering Concerns

BSA Reporting Requirements

BSA-related reporting requirements for national banks are administered by the US Department of Treasury's Financial Crimes Enforcement Network (FinCEN).

These forms include:

• FinCEN Form 104 - Currency Transaction Report (CTR)
• FinCEN Form 105 - Report of International Transportation of Currency or Monetary Instruments (CMIR)
• Treasury Department Form 90.22.1 - Report of Foreign Bank and Financial Accounts (FBAR)
• Treasury Department Form 90.47 - Suspicious Activity Report
• Treasury Department Form 90-22.53 - Designation of Exempt Person Form

The following FinCEN publications provide additional guidance and information to bankers:

• FinCEN FAQs - This document, published by FinCEN, provides answers to frequently asked BSA questions.
• FinCEN Guidance on Preparing a Complete & Sufficient Suspicious Activity Report Narrative - Provides guidance to SAR filers on how to organize and write narrative details of the SAR form.
• SAR Activity Review - By the numbers
• SAR Activity Review, Trends, Tips and Issues