Money-service businesses and financial institutions nationwide are required to adhere to regulations set forth under the Bank Secrecy Act (BSA), which includes the creation of an anti-money laundering (AML) compliance program. At Bates Group, our professionals have expertise in BSA and AML compliance, as well as experience guiding institutions like yours in maintaining AML compliance. Reach out to us today for the professional support your institution needs.
The Bank Secrecy Act and AML Compliance
Originally passed in 1970 (and since expanded), the Bank Secrecy Act subjects financial institutions and money-service businesses to a complex regulatory framework designed to identify, prevent, and respond to acts of money laundering, including terrorist-financing activities. These laws and regulations include Know Your Customer (KYC) compliance, customer due diligence (CDD), and more. Anti-money laundering compliance refers to the broad bucket of laws, rules, and regulations related to the BSA, and KYC and CDD describe the level of scrutiny that money-service businesses are required to perform to maintain AML compliance.
Which Companies Are Required to Maintain an AML Compliance Program?
According to FINRA—the Financial Industry Regulatory Authority—the BSA requires that financial institutions, including broker-dealers, develop and implement AML compliance programs. If there is any question as to whether your business is subject to the BSA and therefore required to develop an AML compliance program, reach out to our professionals for more information.
Effective AML Compliance
Creating and maintaining an AML compliance program requires more than just meeting the Know Your Customer and customer due diligence requirements discussed above; there are specific elements of an AML program that must be included in order to be in compliance with the law. These elements include:
- Independent auditing and testing of the AML compliance program by a third-party
- Development of a system of internal controls for ongoing compliance
- Development of a risk-based customer identification program (CIP)
- Business risk assessment followed by the development of risk-based techniques for conducting CDD
- Ongoing training for all relevant employees
- Assignment of a BSA compliance officer who is responsible for implementing and overseeing the day-to-day operations of the program
How Bates Group Can Help
At Bates Group, our professionals have years of experience developing, implementing, and maintaining AML compliance programs for financial institutions and money-service businesses throughout the country. If your institution needs to implement or improve its AML compliance program, we can help. Call us today to get started.
