June 01, 2020

BSA Blast details updated FFIEC guidance, FinCEN enforcement action

BSAA new edition of NAFCU's BSA Blast – in its user-friendly digital format with direct links to each section – is now available on the NAFCU website. The May issue features a review of recent guidance added to the Bank Secrecy Act (BSA)/Anti-Money Laundering (AML) Examination Manual and a summary of a recent Financial Crimes Enforcement Network (FinCEN) enforcement action holding the former chief operational risk officer personally liable for continued BSA violations.

The BSA Blast is a NAFCU member-only, quarterly e-newsletter offering coverage and analysis of credit union compliance issues and industry activity concerning the BSA and related issues.

In the first article, NAFCU Regulatory Compliance Counsel David Park outlines recent updates to the BSA/AML Examination Manual released by the Federal Financial Institutions Examination Council (FFIEC), which includes the NCUA, in an interagency statement.

"These updates to the Manual can help credit unions understand what examiners’ expectations are in the context of a risk-based supervisory approach," writes Park. "This can ultimately help credit unions review their current policies to see whether they meet the existing supervisory expectations."

In another article, NAFCU Senior Regulatory Compliance Counsel Jennifer Aguilar discusses FinCEN’s 2018 assessment of a civil money penalty against U.S. Bank for its failure to have an effective AML program, among other things.

In a related action filed in March 2020, Aguilar explains that FinCEN assessed a civil money penalty against Michael LaFontaine, former chief operational risk officer at U.S. Bank, for his role in the failure to prevent U.S. Bank’s BSA violations. Aguilar breaks down LaFontaine’s participation and the U.S. Bank enforcement action.

This edition also includes a round-up of recent financial regulator activity and a Q&A forum, with questions and answers on a credit union’s requirement to submit currency transaction report filings and requesting a new beneficial ownership form.

The BSA Blast will continue to publish quarterly throughout the year. Access more from NAFCU's award-winning Compliance Team, including the latest version of NAFCU's compliance calendar, here.