What are the recordkeeping requirements of the BSA?
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. In general, the BSA requires that a bank maintain most records for at least five years.
Does the BSA require a bank to maintain records for transfers?
The BSA does not require a bank to maintain records for the following types of funds transfers: (1) funds transfers where both the originator and beneficiary are the same person and that originator’s bank and the beneficiary’s bank are the same bank; and (2) transfers where the originator and beneficiary are any of the following: A bank.
What is the threshold for recordkeeping and travel?
Threshold Changes to the Recordkeeping and Travel Rules This proposed rule would reduce from $3,000 to $250 the threshold for the requirement to collect, retain, and transmit information on funds transfers and transmittals of funds that begin or end outside the United States.
What are the BSA requirements for evading the CTR?
Under the BSA ( 31 USC 5324 ), no person shall, for the purpose of evading the CTR or a geographic targeting order reporting requirement, or certain BSA recordkeeping requirements: Cause or attempt to cause a bank to fail to file a CTR or a report required under a geographic targeting order or to maintain a record required under BSA regulations.
How long is BSA record retention?
How long do banks keep SAR records?
How old do you have to be to open a thrift account?
What information does a bank need to obtain for an originator's bank?
How much money do banks need to keep?
Who does not need to maintain TIN?
Do banks have to keep records for BSA?
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Record Retention | Bankers Online
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Appendix P: BSA Record-Retention Requirements
Appendix P: BSA Record Retention Requirements FFIEC BSA/AML Examination Manual P–2 2/27/2015.V2 Account Statements A statement, ledger card, or other record on each deposit account showing each transaction
FFIEC BSA/AML Assessing Compliance with BSA Regulatory Requirements ...
View the FFIEC Bank Secrecy Act/Anti-Money Laundering Manual Funds Transfers Recordkeeping page under the Assessing Compliance with BSA Regulatory Requirements section.
Document Retention Policy for Banks - Spencer Fane LLP
Document retention sounds like a boring topic until you realize that your bank can be subject to huge monetary damages and possible regulatory action if it doesn’t handle document retention correctly.
Answers to Frequently Asked Bank Secrecy Act (BSA) Questions
Answer 3: One of the purposes of filing SARs is to identify violations or potential violations of law to the appropriate law enforcement authorities for criminal investigation.This is accomplished by the filing of a SAR that identifies the activity of concern. Should this activity continue over a period of time, it is useful for such information to be made known to law enforcement (and the ...
FDIC: Federal Deposit Insurance Corporation
FDIC: Federal Deposit Insurance Corporation
What is the BSA amendment?
An amendment to the BSA incorporates provisions of the USA Patriot Act, which requires every bank to adopt a customer identification program as part of its BSA compliance program.
What is the purpose of the Bank Secrecy Act?
Bank Secrecy Act (BSA) The OCC prescribes regulations, conducts supervisory activities and, when necessary, takes enforcement actions to ensure that national banks have the necessary controls in place and provide the requisite notices to law enforcement to deter and detect money laundering, terrorist financing and other criminal acts and ...
What is the OCC implementing regulations?
The BSA was amended to incorporate the provisions of the USA PATRIOT Act which requires every bank to adopt a customer identification program as part of its BSA compliance program.
Does structuring occur before a customer brings funds to a bank?
Even if structuring has not occurred, the bank should review the transactions for suspicious activity. In addition, structuring may occur before a customer brings the funds to a bank. In these instances, a bank may be able to identify the aftermath of structuring.
Should a bank review transactions for suspicious activity?
Instead, further review and research may be necessary to determine the nature of the transactions, prior account history, and other relevant customer information to assess whether the activity is suspicious. Even if structuring has not occurred, the bank should review the transactions for suspicious activity.
Can you be penalized for evading the BSA?
Under the BSA ( 31 USC 5324 ), no person shall, for the purpose of evading the CTR or a geographic targeting order reporting requirement, or certain BSA recordkeeping requirements:
What is the BSA threshold for funds transfers?
The modifications would reduce the threshold from the current $3,000 to $250 for funds transfers and transmittals of funds that begin or end outside the United States. The proposed rule likewise would modify the threshold in the rule requiring financial institutions to transmit to other financial institutions in the payment chain information on funds transfers and transmittals of funds from $3,000 to $250 for funds transfers and transmittals of funds that begin or end outside the United States. The proposed rule would also clarify the meaning of “money,” making more clear the transactions in relation to which financial institutions must comply with the Recordkeeping Rule and the Travel Rule.
What is the BSA rule?
The Board and FinCEN (collectively, the “Agencies”) are issuing this proposed rule to modify the threshold in the rule implementing the Start Printed Page 68006 Bank Secrecy Act (“BSA”) requiring financial institutions to collect and retain information on certain funds transfers and transmittals of funds. The proposed modification would reduce this threshold from $3,000 to $250 for funds transfers and transmittals of funds that begin or end outside the United States. FinCEN is likewise proposing to reduce from $3,000 to $250 the threshold in the rule requiring financial institutions to transmit to other financial institutions in the payment chain information on funds transfers and transmittals of funds that begin or end outside the United States. The Agencies are also proposing to clarify the meaning of “money” as used in these same rules to ensure that the rules apply to domestic and cross-border transactions involving convertible virtual currency (“CVC”), which is a medium of exchange (such as cryptocurrency) that either has an equivalent value as currency, or acts as a substitute for currency, but lacks legal tender status. The Agencies further propose to clarify that these rules apply to domestic and cross-border transactions involving digital assets that have legal tender status.
What is the recordkeeping rule?
The Recordkeeping Rule and Travel Rule collectively require banks and nonbank financial institutions to collect, retain, and transmit information on funds transfers and transmittals of funds in amounts of $3,000 or more.
How much does the recordkeeping rule reduce?
The proposed changes to the Recordkeeping Rule and Travel Rule would reduce from $3,000 to $250 the threshold for the requirement to collect, retain, and transmit information on funds transfers and transmittal of funds for transactions that begin or end outside the United States. These changes are necessary because funds transfers and transmittals of funds related to terrorist financing, narcotics trafficking, and other crimes are occurring well below the current $3,000 threshold. It therefore would benefit law enforcement for this additional information to be collected, retained, and transmitted by financial institutions.
What is the effect of lowering the $3,000 threshold on financial institutions?
The Agencies believe that the effect of lowering the $3,000 threshold on financial institutions and on the cost and efficiency of the payments system is likely to be low . As demonstrated by the SARs described in the preceding section, some financial institutions are already collecting information on at least a portion of transactions taking place under the current threshold for purposes of reporting suspicious transactions to FinCEN. FinCEN is also aware that some financial institutions already collect information on the originator and beneficiary for transmittals below the $3,000 threshold for reasons separate from reporting suspicious transactions to FinCEN, for instance because it is cost-effective to maintain a single set of processes for all transactions..
What is the BSA?
The Currency and Foreign Transactions Reporting Act of 1970 , as amended by the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (“USA PATRIOT Act”) ( Pub. L. 107-56) and other legislation, is the legislative framework commonly referred to as the BSA. The Secretary of the Treasury (“Secretary”) has delegated to the Director of FinCEN (“Director”) the authority to implement, administer, and enforce compliance with the BSA and associated regulations. [ 1] Pursuant to this authority, FinCEN may require financial institutions to keep records and file reports that the Director determines have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, or in intelligence or counterintelligence matters to protect against international terrorism. [ 2]
What is the threshold for de minimis?
First, the Agencies considered the possibility of modifying the proposed rule by applying the FATF's suggested de minimis threshold of $1,000 to transactions that begin or end outside the United States. However, this threshold would exclude an unacceptably large percentage of transactions. It is unclear what impact this alternative would have on small entities and it might not reduce the impact on affected small entities in a meaningful way.
How long is BSA record retention?
These BSA record retention requirements are independent of and in addition to record retention requirements under other laws. Five-Year Retention for Records as Specified Below. The BSA establishes recordkeeping requirements related to various types of records including: customer accounts (e.g., loan, deposit, or trust), BSA filing requirements, ...
How long do banks keep SAR records?
A bank must maintain a record of any SAR filed and the original or business record equivalent of any supporting documentation for a period of five years from the date of filing.
How old do you have to be to open a thrift account?
A person under 18 years of age with respect to an account opened as a part of a school thrift savings program, provided the annual dividend is less than $10.
What information does a bank need to obtain for an originator's bank?
For each payment order that a bank accepts as the originator’s bank, the bank must obtain and retain a record of the following information: Name and address of originator. Amount of the payment order. Execution date of the payment order.
How much money do banks need to keep?
A bank must maintain a record of each bank check or draft, cashier’s check, money order, or traveler’s check for $3,000 or more in currency.
Who does not need to maintain TIN?
Exceptions. A bank does not need to maintain TIN for accounts or transactions with the following: Agencies and instrumentalities of federal, state, local, or foreign governments. Judges, public officials, or clerks of courts of record as custodians of funds in controversy or under the control of the court.
Do banks have to keep records for BSA?
These records can be maintained in many forms including original, microfilm, electronic, copy, or a reproduction. A bank is not required to keep a separate system of records for each of the BSA requirements; however, a bank must maintain all records in a way that makes them accessible in a reasonable period of time.
