Project Description

Bank Secrecy Act and Anti-Money Laundering Management

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What is the Bank Secrecy Act?

The Bank Secrecy Act, also known as Anti-Money Laundering (AML) Management is a piece of legislation passed by the United States Congress in 1970 requiring U.S. financial institutions to collaborate with the U.S. government in the event of suspected money laundering, or fraud. More specifically, financial institutions are required to keep record of cash purchases of negotiable instruments. In addition, they are required to report singular, or multiple related transactions that exceed $10,000 in a 24-hour period and also file a report for suspicious activity.

The Office of the Comptroller of the Currency (OCC) also conducts regular examinations of national banks, federal savings associations, federal branches, and agencies of foreign banks in the U.S. to ensure they can prove BSA compliance.

Leverage a Risk-Based Approach to Meet BSA Requirements

Organized crime and terrorism are pervasive threats, and regulatory expectations for financial institutions are at an all-time high. Financial institutions have no choice but to mature their abilities to comply with these regulations, fight crime, and expose illicit activity. As financial institutions become more adept at identifying suspicious transactions, money launderers, terrorists, and other criminals also mature in their ability to find loopholes in existing processes and procedures.

With criminals trying anything in their power to launder their funds, it’s essential for organizations to cover all bases by using a risk-based methodology. Centralized management of Bank Secrecy Act requirements results in improved BSA compliance. Meeting all of the bank secrecy act requirements leads to more effective resistance against risks including but not limited to terrorism financing. Much like cyberattackers and cybersecurity programs, financial institutions are forced to consistently “one-up” the improved strategies employed by criminals. Taking a risk-based approach makes it easy to find the gaps in your compliance program and then incorporate the appropriate controls.

Meeting all of the BSA requirements is essential to protecting your customers, and your organization. While the major purpose of the bank secrecy act is to decrease money-laundering, it also prevents banks from becoming unknowing intermediaries in illegal activity. Taking a risk-based approach enables banks to break down the BSA regulation into actionable steps so they can seamlessly achieve compliance.

Achieve BSA and AML Compliance with LogicManager

LogicManager’s compliance software breaks down silos and ensures that the policies and procedures set in place to fight crime touch the front lines, where this crime often takes place. When information can be collected and aggregated across the organization, as well as across geographic areas, trends can be identified and suspicious activities flagged for investigation and remediation. LogicManager assists organizations in remaining compliant and identifying gaps using a number of resources including:

Compliance Frameworks: LogicManager’s  pre-built frameworks, including the BSA Management Framework help you break down the regulation into separate line items and identify the areas you have covered and those you need to improve on.

Centralized Platform: Knowing the data your business collects, where it’s kept, and what it’s used for requires engagement. Communicating between subject matter experts is easy and efficient within LogicManager’s centralized system and out-of-the-box risk assessments.

Risk Assessment Templates: LogicManager provides pre-built, customizable risk assessments, including both the BSA Risk Assessment template and Anti-Money Laundering (AML) Risk Assessment backed by automated workflows so you never lose sight of an incident. Notify appropriate personnel of non-compliance and security risks and ensure they’re remediated in time.

Checklists and Questionnaires: Identify gaps using The Wolfsburg Group’s Anti-Money Laundering Questionnaire aimed to provide guidance for the management of financial crime risks, particularly with respect to AML, Counter Terrorist Financing policies, and Know Your Customer Laws.

Reporting Engine: Report your compliance status to regulators using LogicManager’s award-winning reporting capabilities that drastically reduce time and money spent on manual reporting. Generate pre-built compliance reports with a click of a button, or create custom reports with the help of your advisory analysts.  

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If you’re already a LogicManager customer, you can contact your business analysts to activate this plugin! If you’re new to LogicManager, you can request a personalized demo to see our compliance solution in action.

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