Since 2017, regulated financial institutions in New York have been required to maintain a Certification of Compliance with Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) regulations with the Department of Financial Services. The certification is to be submitted annually, meaning that it’s especially important for your firm to stay up to date with the most current policies. At Bates Group, we offer both individual and team training programs for you to improve your company’s compliance program in New York.
The Bank Secrecy Act is another name for the Currency and Foreign Transactions Reporting Act of 1970, which requires regulated financial institutions to record transactions over $10,000 and report suspicious activities that might be related to money laundering or terrorist activity.
The Federal Deposit Insurance Corporation provides resources on compliance for bankers, and defines the series of regulations’ purpose as following:
“The BSA provides a foundation to promote financial transparency and deter and detect those who seek to misuse the U.S. financial system to launder criminal proceeds, finance terrorist acts, or move funds for other illicit purposes.”
The list of institutions which must comply with BSA regulation is extensive; among the most notable are banks, insurance companies, loan or finance companies and credit unions. Foreign financial institutions are also required to maintain compliance for U.S. operations.
At its most basic, the law requires institutions to keep records of certain transactions for five years and to provide documentation of suspicious activity to the U.S. government. It’s important to be aware of the sort of transactions your business may be involved in, so you know which regulations apply to your New York financial institution. The Federal Financial Institutions Examination Council (FFIEC) has more in-depth information available, although it may be helpful to discuss the matter with an expert consultant.
According to the FFIEC, banks must train personnel in BSA/AML compliance. That training may be tailored to an employee’s specific role, but BSA compliance staff may need periodic training to remain “informed of changes to regulatory requirements and changes to the bank’s risk profile”.
BSA compliance is a serious matter, as your New York financial institution can incur serious penalties for violations. The minimum civil penalties in 2022 began at $10,000, but can be far higher depending on the severity of violations. Compliance training with Bates Group can help protect your business, keeping you up to date on the most important aspects of the law.
Compliance training with an expert from Bates Group can be an effective way to keep your New York financial institution up to date with the most current BSA and AML regulations. At Bates Group, we have over 40 years of proven experience in consulting to help protect your business. To learn more about how our experts can help, contact us today.
Please fill out all fields marked with* and submit the following form to
request your consultation.
Please fill out all fields marked with * and submit the following form to request your consultation.