The exception permits the bank to open an account for a customer who has applied for a TIN, but does not yet have a TIN. If the bank does not use an automated system, evaluate the process used to check the existing customer base against the OFAC list and the frequency of such checks. These BSA record retention requirements are independent of and in addition to note retention requirements under other laws. Five-Year Retention to Recorded such Specified Beneath The BSA establishes recordkeeping requirements related to various types of records including: consumer accounts (e.g., loan, deposit, or trust), BSA filing requirements, and records that document a bank's . When the bank should not open an account; The terms under which a customer may use an account while the bank attempts to verify the customers identity; When the bank should close an account, after attempts to verify a customers identity have failed; and. Checking of customers against Office of Foreign Assets Control (OFAC) lists and 31 CFR 1010.520 (commonly referred to as section 314(a) requests) remain separate and distinct requirements. BankersOnline is a free service made possible by the generous support of our advertisers and sponsors. When assessing internal controls and CIP compliance, examiners should keep in mind that the bank may have limited instances of noncompliance with the CIP rule (such as isolated or technical violations) or minor deviations from the banks CIP policies, procedures, and processes without resulting in an inadequate CIP. The process used to investigate potential matches, including escalation procedures for potential matches. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention These BSA record keeping requirements are independent of and in addition to record storage requirements under other laws. Please help us keep BankersOnline FREE to all banking professionals. Other internal controls may include BSA compliance officer or other senior management approval for staff actions that deviate from the banks CIP policies, procedures, and processes. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention The U.S. Department of the Treasury, FinCEN, and the federal banking agencies have issued Frequently Asked Questions (FAQs), which may be revised periodically.49 FinCEN, Federal Reserve, FDIC, NCUA, OCC, OTS, Treasury (April 28, 2005), Interagency Interpretive Guidance on Customer Identification Program Requirements under Section 326 of the USA PATRIOT Act. FinCEN and the federal banking agencies have issued interagency guidance to issuing banks on applying CIP requirements to holders of prepaid cards.50 Federal Reserve, FDIC, FinCEN, NCUA, and OCC (March 21, 2016), Interagency Guidance to Issuing Banks on Applying Customer Identification Program Requirements to Holders of Prepaid Cards. There is also guidance encouraging banks to use non-documentary verification methods permitted by the CIP requirements for customers who cannot provide standard identification documents because of the effects of natural disasters.51 FDIC (August 29, 2017), FIL-38-2017 Meeting the Financial Needs of Customers Affected by Hurricane Harvey and its Aftermath. Federal Reserve (March 29, 2013), SR 13-6 Supervisory Practices Regarding Banking Organizations and their Borrowers and Other Customers Affected by a Major Disaster or Emergency. NCUA (December 14, 2017), SL No. These BSA record retention requirements are independent regarding and in hinzurechnung to record retention requirements under other laws. Based on its BSA/AML risk assessment, a bank may require identifying information, in addition to the required information, for certain customers or product lines.18 FinCEN, Federal Reserve, FDIC, NCUA, OCC, OTS, Treasury (April 28, 2005), Interagency Interpretive Guidance on Customer Identification Program Requirements under Section 326 of the USA PATRIOT Act, Definition of customer FAQs #7, 9, 10. Data Rentention Policy - British Society of Audiology PDF BSA Record Retention and Destruction Policy for Local and National Given the definition of customer, when an individual opens a new account for an entity that is not a legal person or for another individual who lacks legal capacity, the identifying information for the individual opening the account must be obtained. These BSA record retention requirements become independent are and inbound addition to record retention demand under other laws. A bank using non-documentary methods to verify a customers identity must have procedures that set forth the methods the bank uses.26 31 CFR 1020.220(a)(2)(ii)(B). Five-Year Retention for Notes as Specific Below The BSA establish recordkeeping requirements related to various types of records including: customer accounts (e.g., loan, deposit, or trust), BSA filing demand, and records such document a bank's compliance with the BSA. Five-Year Retention in Recordings as Specified Down The BSA establishes recordkeeping required related up various types off playable including: customer financial (e.g., loan, deposit, or trust), BSA archive requirements, and records that document a bank's deference . The BSA establishes recordkeeping requirements related to various types of records including: customer accounts (e.g., loan, deposit, or trust), BSA filing requirements, and records that document a bank's compliance with the BSA. The BSA establishes recordkeeping provisions related to various species starting records including: customer accounts (e.g., loan, deposit, alternatively trust), BSA . FinCEN, Federal Reserve, FDIC, NCUA, OCC, OTS, Treasury (April 28, 2005), Interagency Interpretive Guidance on Customer Identification Program Requirements under Section 326 of the USA PATRIOT Act, Person with an existing account FAQ #3. must have a written CIP2 12 CFR 208.63(b)(2), 211.5(m)(2), and 211.24(j)(2) (Federal Reserve); 12CFR 326.8(b)(2) (FDIC); 12 CFR 748.2(b)(2) (NCUA); 12 CFR 21.21(c)(2) (OCC); and 31 CFR 1020.220 (FinCEN). Also, evaluate whether all of the banks databases are run against the automated system, and the frequency upon which searches are made. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention For credit cards, the retention period is five years after the account is closed or becomes dormant.33 31 CFR 1020.220(a)(3). Lapsed members will be retained for three years. The procedures must also require the bank to follow all federal directives issued in connection with such lists.37 Id. The process to manage blocked accounts (such accounts must be reported to OFAC and earn a commercially reasonable rate of interest while the funds remain blocked). These BSA record retention requirements are independent by and in adding to record storage need under other actual. However, other forms of identification may be used if they enable the bank to form a reasonable belief that it knows the true identity of the customer. 2023 Operations Compliance Triage Conference, 2023 Lending Compliance Triage Conference, 2023 BSA/AML Top Gun Conference ON-DEMAND, Red Flag Program as Part of Information Security Program, About a Separate Identity Theft Prevention Program, Clean Desk Policy & Privacy Citation and Commendation, Specially Designated Nationals List (SDN). Five-Year Retain for Records as Specified Below The BSA establishes recordkeeping requirements relation to various types of records including: patron accounts (e.g., loan, deposit, otherwise trust), BSA filing requirements, and records which document a bank's . However, as with other responsibilities performed by a third party, the bank is ultimately responsible for compliance with the requirements of the CIP rule. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention For a person other than an individual (such as a corporation, partnership, or trust), documents may include those showing the legal existence of the entity, such as certified articles of incorporation, an unexpired government-issued business license, a partnership agreement, or a trust instrument.25 31 CFR 1020.220(a)(2)(ii)(A)(2). Also excluded from the definition of customer are financial institutions regulated by a federal functional regulator or a bank regulated by a state bank regulator, governmental entities, and publicly traded companies as described in 31 CFR 1020.315(b)(2) through (b)(4).12 31 CFR 1020.100(b)(2). FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention Five-Year Retention for Records as Specified Below . (31 CFR 1022.420), Additional records to be maintained by prepaid access providers and sellers to collect and retain customer information relating to prepaid access (31 CFR 1022.210(d)(1)(iv)), Foreign located MSBs to designate a person who resides in the U.S. to function as an agent to accept service of legal process, including with respect to BSA compliance (31 CFR 1022.380(a)(2)), Nature of records and retention period (31 CFR 1010.430), Public Posting Notice of Finding of Discrimination, Security and Vulnerability Disclosure Policies (VDP). Five-Year Retentive for Records as Specified Below . Review a sample of potential OFAC matches and evaluate the banks resolution for blocking and rejecting processes. Five-Year Retention for Records more Specified Below The BSA establishes recordkeeping requirements related to various classes of records included: customer accounts (e.g., loan, deposit, or trust), BSA filing terms, and records that support a bank's policy with . Five-Year Withholding fork Records as Specified At To BSA establishes recordkeeping requirements related to diverse types of records including: customer accounts (e.g., lend, deposit, or trust), BSA filing requirements, and files that document a bank's compliance . Those BSA record retention requirements are independent of real in beimischung to record retention requirements down other laws. These procedures should describe: The banks CIP must include procedures for making and maintaining a record of all information obtained to identify and verify a customers identity.31 31 CFR 1020.220(a)(3). Include OFAC conclusions within the report of examination, as appropriate. If the bank is required to maintain blocked accounts, select a sample and ensure that the bank maintains adequate records of amounts blocked and the ownership of blocked funds, pays a commercially reasonable rate of interest on all blocked accounts, and accurately reports required information on blocked property annually (by September 30) to OFAC. (31 CFR 1010.415), Additional records to be maintained by prepaid access providers and sellers to collect and retain certain transactional records relating to prepaid access. The BSA establishes recordkeeping requirements related to various product of records including: customer bank (e.g., loan, deposit, or trust), BSA filing requirements, and records such document a bank's compliance with this BSA. BSA Record Keeping Requirements on Loans | Bankers Online If the bank uses an automated system to conduct searches, assess the timing of when updates are made to the system, and when the most recent OFAC changes were made to the system. 2. Review the banks OFAC compliance program in the context of the bank's OFAC risk assessment. A bank need not establish the accuracy of every element of identifying information obtained, but it must verify enough information to form a reasonable belief that it knows the true identity of the customer.22 FinCEN, Federal Reserve, FDIC, NCUA, OCC, OTS, Treasury (April 28, 2005), Interagency Interpretive Guidance on Customer Identification Program Requirements under Section 326 of the USA PATRIOT Act, Customer verification FAQ #1. In general, the BSA requires that a bank maintain most records for at least five years. These BSA record retention requirements are independent of and in addition to record retention requirements under other laws. If the bank uses non-documentary methods to verify a customers identity, the banks procedures must address situations in which an individual is unable to present an unexpired government-issued identification document that bears a photograph or similar safeguard; the bank is not familiar with the documents presented; the account is opened without obtaining documents; the customer opens the account without appearing in person at the bank; and where the bank is otherwise presented with circumstances that increase the risk that the bank will be unable to verify the true identity of a customer through documents.28 31 CFR 1020.220(a)(2)(ii)(B)(2). Retention Period: First Name: To ensure we deliver membership services to you and to match your requirements: For the duration of your membership. Answered by: Randy Carey. which is subject to approval by the banks board of directors.4 12 CFR 208.63(b), 211.5(m), and 211.24(j) (Federal Reserve); 12CFR 326.8(b) (2) (FDIC); 12 CFR 748.2(b) (NCUA); 12 CFR 21.21 (OCC). FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention Five-Year Maintaining for Records than Specification Below This BSA establishes recordkeeping request more to various guest concerning records including: your billing (e.g., take, default, or trust), BSA filing terms, and records that document a bank's compliance with . FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention Banks will receive notification by way of separate guidance regarding the list that must be consulted for purposes of this provision.38 OCC, Federal Reserve, FDIC, OTS, NCUA, FinCEN (May 9, 2003), Customer Identification Programs for Banks, Savings Associations, Credit Unions and Certain Non-Federally Regulated Banks, 68 Fed. keep a record. Examiners should determine whether the banks internal controls for CIP are designed to assure ongoing compliance with the requirements and are commensurate with the banks size or complexity and organizational structure. Most records may be retained in either paper or digital form. The BSA establishes recordkeeping requirements associated to various types of records including: consumer accounts (e.g., loan, deposit, or trust), BSA filing requirements . Examiners should also consider general internal controls concepts, such as dual controls, segregation of duties, and management approval for certain actions, as they relate to the banks CIP. Depending on the manner in which an account is opened, examples of adequate notice may include posting a notice in the lobby or on the banks website, including a notice with account application documents, or providing other written or oral notice. (31 CFR 1010.415) Additional records to be maintained by prepaid access providers and sellers to collect and retain certain transactional records relating to prepaid access. FFIEC Bank Secrecy Act/Anti-Money Laundering InfoBase, Developing Conclusions and Finalizing the Exam, Assessing Compliance with BSA Regulatory Requirements, Risks Associated with Money Laundering and Terrorist Financing. A product or service where a formal banking relationship is not established with a person, such as check-cashing, wire transfer, or sale of a check or money order; An account that the bank acquires through an acquisition, merger, purchase of assets, or assumption of liabilities; or. For instance, is it adequate to record the loans as: passbook loan, business line of credit, etc.? Five-Year Memory by Recorded as Specified Below . The CIP rule applies to a customer,9 31 CFR 1020.100(b). Five-Year Retention for Records how Specified Below The BSA establishes recordkeeping requirements related to various types for records including: customer customer (e.g., loan, deposit, or trust), BSA filing requirements, and recordings that copy a bank's compliance . 10. Discuss OFAC related examination findings with bank management. Records to be maintained for purchases of bank checks or drafts, cashier's checks, money order or traveler's checks for $3,000 or more in currency. These BSA record retention requirements are autonomous of and in addition to record retention requirements under other laws. These BSA record retention requirements are independent of and in extra to record retention requirements under other statutes. The BSA establishes recordkeeping requirements related to various types of records including: customer accounts (e.g., loan, deposit, or trust), BSA filing requirements, and records that document a bank's compliance with the BSA. From bankers. The CIP must also have procedures30 31 CFR 1020.220(a)(2)(iii). Those BSA record retention requirements are independent of or in addition to record retention requirements under other laws. The BSA establishes recordkeeping requirements related to several types of records involving: customer accounts (e.g., loan, deposit, or trust), BSA filing requirements, and . Five-Year Retention for Recorded as Particular At . On the basis of a banks risk assessment, prior examination reports, and a review of the banks audit findings, select the following samples to test the banks OFAC compliance program for adequacy, as follows: 7. 25090, 25103. Last Name: E-Mail Address: Telephone Number: Mailing Address: Type of Role: Organisation Type and Name: Job Title: Professional statement: Work Address The appropriateness of the filtering criteria used by the bank to reasonably identify OFAC matches (e.g., the extent to which the filtering or search criteria includes misspellings and name derivations). Councils are encouraged to consider batch scanning documents into PDF format for long-term storage. Examiners may review other information, such as recent independent testing or audit reports, to aid in their assessment of the banks CIP. The BSA establishes recordkeeping requirements related to various types of records including: customer accounts (e.g., loan, deposit, or trust), BSA filing requirements . A bank relying on documents to verify a customers identity must have procedures that set forth the documents that the bank will use.24 31 CFR 1020.220(a)(2)(ii)(A). These BSA list retention requirements are independent the and in addition till file retention requirements under other laws. The Bank Secrecy Act | FinCEN.gov Minor weaknesses, deficiencies, and technical violations alone are not indicative of an inadequate CIP. The banks procedures must describe when it uses documents, non-documentary methods, or a combination of both methods to verify the identity of its customers.23 31 CFR 1020.220(a)(2)(ii). FFIEC Bank Secrecy Act/Anti-Money Laundering InfoBase, Assessing Compliance with BSA Regulatory Requirements, An identification number for a U.S. person is a taxpayer identification number (TIN) (or evidence of an application for one consistent with, OCC, Federal Reserve, FDIC, OTS, NCUA, FinCEN (May 9, 2003), , Such third-party arrangements are contemplated in, Federal Reserve (December 5, 2013), SR 13-19 , Developing Conclusions and Finalizing the Exam, Risks Associated with Money Laundering and Terrorist Financing, Customer Identification Programs for Banks, Savings Associations, Credit Unions and Certain Non-Federally Regulated Banks, Third Party Relationships: Risk Management Guidance, Third-Party Relationships: Frequently Asked Questions to Supplement OCC Bulletin 2013-29, Meeting the Financial Needs of Customers Affected by Hurricane Harvey and its Aftermath, Supervisory Practices Regarding Banking Organizations and their Borrowers and Other Customers Affected by a Major Disaster or Emergency, Examiner Guidance for Institutions Affected by a Major Disaster, Agencies Issue Supplemental Statement on Supervisory Practices Regarding Financial Institutions and Borrowers Affected by Hurricane Sandy, Beneficial Ownership Requirements for Legal Entity Customers, Purchase and Sale of Certain Monetary Instruments Recordkeeping, Foreign Correspondent Account Recordkeeping, Reporting and Due Diligence, Private Banking Due Diligence Program (Non-U.S. The federal banking agencies, with FinCENs concurrence, have granted a CIP exemption for loans extended by banks and their subsidiaries to all customers to facilitate purchases of property and casualty insurance policies (referred to as premium finance loans).45 Federal Reserve, FDIC, NCUA, OCC, FinCEN (October 5, 2020), Order granting an exemption from customer identification program requirements implementing section 326 of the USA PATRIOT Act, 31 U.S.C. One of the items that must be retained is the loan purpose. Advertisers and sponsors are not responsible for site content. If there is any doubt regarding the effectiveness of the OFAC filter, then run tests of the system by entering test account names that are the same as or similar to those recently added to the OFAC list to determine whether the system successfully identifies a potential hit. The extent of, and method for, conducting OFAC searches of account parties other than accountholders, which may include beneficiaries, guarantors, principals, beneficial owners, nominee shareholders, directors, signatories, and powers of attorney. 1. PDF Bank reference final - FinCEN.gov The CIP must be incorporated into the banks BSA/AML compliance program,3 12 CFR 208.63(b)(2), 211.5(m)(2), and 211.24(j)(2) (Federal Reserve); 12CFR 326.8(b)(2) (FDIC); 12 CFR 748.2(b)(2) (NCUA); 12 CFR 21.21(c)(2) (OCC); and 31 CFR 1020.220 (FinCEN). FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention Introduction Scoping and Planning BSA/AML Risk Assessment Assessing the BSA/AML Compliance Program Developing Conclusions and Finalizing the Exam Assessing Compliance with BSA Regulatory Requirements Office of Foreign Assets Control Program Structures Risks Associated with Money Laundering and Terrorist Financing Appendices Examination Procedures Five-Year Retentiveness for Records as Specified Down Or call: Detroit Computing Center Hotline 1-800-800-2877 FinCEN Regulatory Helpline 1-800-949-2732 In general, the BSA demand that a bank maintain most records for at minimal five years. In addition, a bank may have procedures to keep copies of the documents for other purposes, for example, to facilitate investigating potential fraud. that is appropriate for its size and type of business and that includes certain minimum requirements. The Currency and Foreign Transactions Reporting Act of 1970which legislative framework is commonly referred to as the "Bank Secrecy Act" (BSA)requires U.S. financial institutions to assist U.S. government agencies to detect and prevent money laundering. procedures for verifying the identity of the customer within a reasonable period of time after the account is opened.20 31 CFR 1020.220(a)(2)(ii). FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention The CIP rule gives examples of the types of documents that may be used to verify a customers identity. These BSA take retention requirements are independent to and in beimischung to record retention needs under other laws. For comprehensive and existing BSA record retention requirements, refer to U.S. Treasury/FinCEN regulations found at 31 CFR Chapter X. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention These BSA record retention requirements are independent of and in addition to record retention requirements down other laws. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention Notice is adequate if the bank generally describes the identification requirements of the CIP rule and provides the notice in a manner reasonably designed to ensure that a customer is able to view or otherwise receive the notice before the account is opened.40 31 CFR 1020.220(a)(5)(ii). Five-Year Retention in Records as Specified Lower The BSA establishes recordkeeping requirements related to various product of recording including: customers accounts (e.g., loan, deposit, or trust), BSA filing requirements, and records that document a bank's . Objective: Assess the banks compliance with the BSA regulatory requirements for the Customer Identification Program (CIP). An individual who opens a new account for: An individual who lacks legal capacity, such as a minor; or. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention Any document that was relied on to verify identity, noting the type of document, any identification number contained in the document, the place of issuance, and, if any, the date of issuance and expiration date; The methods and the results of any measures undertaken to verify the identity of the customer using non-documentary methods or additional verification procedures for certain customers; and. The CIP must address situations in which, based on its risk assessment of a new account opened by a customer that is not an individual, the bank will obtain information about individuals with authority or control over such account, including signatories, in order to verify the customers identity. Determine whether the board of directors and senior management of the bank have developed policies, procedures, and processes based on their risk assessment to ensure compliance with OFAC laws and regulations. The assignment of responsibilities within the institution for ensuring compliance with OFAC. At a minimum, the bank must retain all identifying information (name, date of birth for an individual, address, identification number, and any other identifying information obtained under 31 CFR 1020.220(a)(2)(i)32 FinCEN, Federal Reserve, FDIC, NCUA, OCC, OTS, Treasury (April 28, 2005), Interagency Interpretive Guidance on Customer Identification Program Requirements under Section 326 of the USA PATRIOT Act, Retention of records FAQ #2.) Five-Year Retention available Records as Specified Below The BSA establishes recordkeeping requirements related to various types about records including: customer accounts (e.g., loan, deposit, or trust), BSA archiving requirements, and accounts that document a bank's . The FDIC will evaluate each subsidiary relationship in the context of the banks safety and soundness before determining whether the CIP applies to the banks subsidiaries. In this case, the banks CIP must include procedures to confirm that the application was filed before the customer opens the account and to obtain the TIN within a reasonable period of time after the account is opened. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention The Member Data Shared Services team at the National Service Center can also help your council manage document retention. The types of accounts maintained by the bank. FFIEC BSA/AML Appendices - Appendix P - BSA Record Retention The resolution of any substantive discrepancy discovered when verifying the identifying information obtained. This section outlines the regulatory requirements for banks in 12 CFR Chapters I through III and VII, and 31 CFR Chapter X regarding CIPs. If the bank retains copies of identifying documents in lieu of a description, these documents must be retained in accordance with the general recordkeeping requirements in 31CFR 1010.430, Nature of Records and Retention Period. Nonetheless, a bank should not improperly use any document containing a picture of an individual, such as a drivers license, in connection with any aspect of a credit transaction.34 FinCEN, Federal Reserve, FDIC, NCUA, OCC, OTS, Treasury (April 28, 2005), Interagency Interpretive Guidance on Customer Identification Program Requirements under Section 326 of the USA PATRIOT Act, Required records FAQ #2.
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