Bank Secrecy Act/Anti-Money Laundering: Updated Sections of the FFIEC BSA/AML Examination Manual

The Office of the Comptroller of the Currency, OCC, has published a press statement to announce that the Federal Financial Institutions Examination Council (FFIEC) – which is composed of members of the five banking regulators in the U.S. – has updated several parts of its Examination Manual on the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML). The affected sections are the following and contain the following revisions – as mainly quoted:
– Special Information Sharing Procedures to Deter Money Laundering and Terrorist Activity which was updated and retitled (previously, it was named „information sharing“) to align with regulations at 31 CFR 1010.520 and 31 CFR 1010.540.
– Due Diligence Programs for Correspondent Accounts for Foreign Financial Institutions which was updated and combines the previous sections “Foreign Correspondent Account Recordkeeping, Reporting, and Due Diligence” and “Correspondent Accounts (Foreign)” to align with the regulation at 31 CFR 1010.610.
– Due Diligence Programs for Private Banking Accounts which was updated and combines the previous “Private Banking Due Diligence Program (Non-US Persons)” and “Private Banking” sections to align with the regulation at 31 CFR 1010.620.
– Prohibition on Correspondent Accounts for Foreign Shell Banks; Records Concerning Owners of Foreign Banks and Agents for Services of Legal Process which was newly created as a stand-alone section from the previous section “Foreign Correspondent Account Recordkeeping, Reporting, and Due Diligence” to align with the regulation at 31 CFR 1010.630.
– Summons or Subpoena of Foreign Bank Records; Termination of Correspondent Relationship; Records Concerning Owners of Foreign Banks and Agents for Service of Legal Process which was newly created as a stand-alone section from the previous section “Foreign Correspondent Account Recordkeeping, Reporting, and Due Diligence” to align with the regulation at 31 CFR 1010.670 and 31 CFR 1010.630.
– Reporting Obligations on Foreign Bank Relationships With Iranian-Linked Financial Institutions which was newly created as a stand-alone section from the previous section “Foreign Correspondent Account Recordkeeping, Reporting, and Due Diligence” to align with the regulation at 31 CFR 1060.300.
Although the manual provides „instructions to examiners for assessing the adequacy of a bank’s or credit union’s BSA/AML compliance program and its compliance with BSA regulatory requirements“, financial institutions are strongly recommended by the regulators to review the document to stay informed on the expectations of the supervisory authorities regarding AML and CFT practices and required due diligence measures.