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colspan="9"><img src="../media/int-inner-up/int_13.jpg" WIDTH=720 HEIGHT="12" ALT=""></td> </tr> <tr> <td colspan="9"><table class="tableBorder1" width="100%" border="0" cellspacing="0" cellpadding="0" summary="layout table"> <tr> <td colspan="5">&nbsp;</td> </tr> <tr valign="top"> <td>&nbsp;</td> <td colspan="3"><div id="dropdownarea"> <form name="form1" action="javascript://"> <div> <label for="resDocsMenu">Resource Documents</label> <select name="resDocsMenu"> <option value="../pages_resource_docs/bg_frs.htm">Board of Governors of the Federal Reserve System</option> <option value="../pages_resource_docs/fdic.htm">Federal Deposit Insurance Corporation</option> <option value="../pages_resource_docs/ncua.htm">National Credit Union Administration</option> <option value="../pages_resource_docs/occ.htm">Office of the Comptroller of the Currency</option> <option value="../pages_resource_docs/ots.htm">Office of Thrift Supervision</option> <option value="../pages_resource_docs/fce.htm">Financial Crimes Enforcement Network</option> <option value="../pages_resource_docs/ofac.htm">Office of Foreign Assets Control</option> </select> <input type="button" class="button_go" value="Go" onClick="MM_jumpMenuGo('resDocsMenu','parent',0)"> </div> <div> <label for="presMenu">Examination Procedures</label> <select name="presMenu"> <option value="../procedures/core.doc">Core Procedures</option> <option value="../procedures/expanded.doc">Expanded Procedures</option> </select> <input type="button" class="button_go" value="Go" onClick="goPresentation('presMenu')"> </div> </form> </div></td> <td>&nbsp;</td> </tr> <tr valign="top"> <td>&nbsp;</td> <td colspan="3"><hr></td> <td>&nbsp;</td> </tr> <tr valign="top"> <td width="10">&nbsp;</td> <td><div id="mainContent"><!-- InstanceBeginEditable name="mainPgContent" --> <table width="100%" border="0" cellspacing="0" cellpadding="0"> <tr> <td class="style2"><h2>Bank Secrecy Act<br> Anti-Money Laundering <br> Examination Manual</h2></td> <td class="style2"><p align="right"><a href="OLM_061.htm">Backward</a> | <a href="manual_online.htm">Table of Contents</a> | <a href="OLM_063.htm">Forward</a></p></td> </tr> </table> <h1 align="center" class="style6"><strong>EXAMINATION PROCEDURES </strong></h1> <h1 align="center" class="style6">Electronic Cash</h1> <p class="style2">&nbsp;</p> <p class="style2"><strong>Objective</strong>. <em>Assess the adequacy of the bank s systems to manage the risks associated with electronic cash (e-cash), including prepaid cards, and management s ability to implement effective monitoring and reporting systems.</em></p> <p class="style2">1. Review the policies, procedures, and processes related to e-cash, including prepaid cards. Evaluate the adequacy of the policies, procedures, and processes given the bank s e-cash activities, including prepaid cards, and the risk they present. Assess whether the controls are adequate to reasonably protect the bank from money laundering and terrorist financing.</p> <p class="style2">2. From a review of MIS and internal risk rating factors, determine whether the bank effectively identifies and monitors higher-risk e-cash transactions, including prepaid card transactions.</p> <p class="style2">3. Determine whether the bank s system for monitoring e-cash transactions, including prepaid card transactions, for suspicious activities, and for reporting suspicious activities, is adequate given the bank s size, complexity, location, and types of customer relationships.</p> <p class="style2">4. If appropriate, refer to the core examination procedures,  Office of Foreign Assets Control, pages 157 to 159, for guidance.</p> <p class="style7">Transaction Testing </p> <p class="style2">5. On the basis of the bank s risk assessment of its e-cash activities, including prepaid card activities, as well as prior examination and audit reports, select a sample of e-cash transactions. From the sample selected perform the following examination procedures:</p> <ul> <li>Review account opening documentation, including CIP, ongoing CDD, and transaction history.</li> <li>Compare expected activity with actual activity. </li> <li>Determine whether the activity is consistent with the nature of the customer&rsquo;s business. </li> <li>Identify any unusual or suspicious activity. </li> </ul> <p class="style2">6. On the basis of examination procedures completed, including transaction testing, form a conclusion about the adequacy of policies, procedures, and processes associated with e-cash relationships. </p> <p class="style2">&nbsp;</p> <p align="right" class="style2"><a href="OLM_061.htm">Backward</a> | <a href="manual_online.htm"> Table of Contents</a> | <a href="OLM_063.htm">Forward</a></p> <!-- InstanceEndEditable --></div></td> <td width="10">&nbsp;</td> </tr> <tr> <td height="30" colspan="5">&nbsp;</td> </tr> </table></td> </tr> <tr> <td><img src="../media/int-up/spacer.gif" WIDTH="110" HEIGHT="1" ALT=""></td> <td><img src="../media/int-up/spacer.gif" WIDTH="129" HEIGHT="1" ALT=""></td> <td><img src="../media/int-up/spacer.gif" WIDTH="79" HEIGHT="1" ALT=""></td> <td><img src="../media/int-up/spacer.gif" WIDTH="54" HEIGHT="1" ALT=""></td> <td><img src="../media/int-up/spacer.gif" WIDTH="74" HEIGHT="1" ALT=""></td> <td><img src="../media/int-up/spacer.gif" WIDTH="51" HEIGHT="1" ALT=""></td> <td><img src="../media/int-up/spacer.gif" WIDTH="73" HEIGHT="1" ALT=""></td> <td><img src="../media/int-up/spacer.gif" WIDTH="33" HEIGHT="1" ALT=""></td> <td><img src="../media/int-up/spacer.gif" WIDTH="117" HEIGHT="1" ALT=""></td> </tr> </table> </body> <!-- InstanceEnd --></html>