ÿþ<!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN" "http://www.w3.org/TR/html4/loose.dtd"> <html lang="en-us"><!-- InstanceBegin template="/Templates/bsa-inner.dwt" codeOutsideHTMLIsLocked="false" --> <head> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> <link href="../include/global.css" rel="stylesheet" type="text/css" /> <script language="javascript" src="../include/global.js" type="text/javascript"></script> <!-- InstanceBeginEditable name="doctitle" --> <title>Online Manual - BSA InfoBase - FFIEC</title> <!-- InstanceEndEditable --> <script language="JavaScript" type="text/JavaScript"> <!-- function MM_preloadImages() { //v3.0 var d=document; if(d.images){ if(!d.MM_p) d.MM_p=new Array(); var i,j=d.MM_p.length,a=MM_preloadImages.arguments; for(i=0; i<a.length; i++) if (a[i].indexOf("#")!=0){ d.MM_p[j]=new Image; d.MM_p[j++].src=a[i];}} } function MM_swapImgRestore() { //v3.0 var i,x,a=document.MM_sr; for(i=0;a&&i<a.length&&(x=a[i])&&x.oSrc;i++) x.src=x.oSrc; } function MM_findObj(n, d) { //v4.01 var p,i,x; if(!d) d=document; if((p=n.indexOf("?"))>0&&parent.frames.length) { d=parent.frames[n.substring(p+1)].document; n=n.substring(0,p);} if(!(x=d[n])&&d.all) x=d.all[n]; for (i=0;!x&&i<d.forms.length;i++) x=d.forms[i][n]; for(i=0;!x&&d.layers&&i<d.layers.length;i++) x=MM_findObj(n,d.layers[i].document); if(!x && d.getElementById) x=d.getElementById(n); return x; } function MM_swapImage() { //v3.0 var i,j=0,x,a=MM_swapImage.arguments; document.MM_sr=new Array; for(i=0;i<(a.length-2);i+=3) if ((x=MM_findObj(a[i]))!=null){document.MM_sr[j++]=x; if(!x.oSrc) x.oSrc=x.src; x.src=a[i+2];} } function MM_openBrWindow(theURL,winName,features) { //v2.0 window.open(theURL,winName,features); } function MM_jumpMenu(targ,selObj,restore){ //v3.0 eval(targ+".location='"+selObj.options[selObj.selectedIndex].value+"'"); if (restore) selObj.selectedIndex=0; } function MM_jumpMenuGo(selName,targ,restore){ //v3.0 var selObj = MM_findObj(selName); if (selObj) MM_jumpMenu(targ,selObj,restore); } //--> </script> <!-- InstanceBeginEditable name="head" --> <style type="text/css"> <!-- .style2 {color: #000066} --> </style> <!-- InstanceEndEditable --> <style type="text/css"> <!-- .style6 { font-size: x-large; color: #000066; } a:link { color: #000066; } a:active { color: #000066; } --> </style> </head> <body onLoad="MM_preloadImages('../media/int-inner-ov/int_regulations.jpg','../media/int-inner-ov/int_onlineproc.jpg','../media/int-inner-ov/int_procprint.jpg','../media/int-inner-ov/int_span.jpg','../media/int-inner-ov/int_gloss.jpg','../media/int-inner-ov/int_forms.jpg','../media/int-inner-ov/int_red.jpg','../media/int-inner-ov/int_faq.jpg', '../media/int-ov/int_pres.jpg')"> <a name="pagetop"></a> <table WIDTH="720" BORDER="0" align="center" CELLPADDING="0" CELLSPACING="0" bgcolor="#EFE5CB" summary="Main layout table"> <tr> <td colspan="9"><a href="../default.htm"><img src="../media/int-inner-up/int_01.jpg" ALT="Federal Financial Institutions Examination Council Bank Secrecy Act/Anti-Money Laundering InfoBase" WIDTH="720" HEIGHT="70" border="0"></a></td> </tr> <tr> <td COLSPAN="7"><img src="../media/int-inner-up/int_02.jpg" WIDTH=570 HEIGHT=26 ALT=""></td> <td COLSPAN="2"><a href="../pages_misc/regulations.htm" onMouseOver="MM_swapImage('but_reg','','../media/int-inner-ov/int_regulations.jpg',1)" onMouseOut="MM_swapImgRestore()"><img src="../media/int-inner-up/int_regulations.jpg" ALT="Regulations" name="but_reg" WIDTH=150 HEIGHT=26 border="0" id="but_reg"></a></td> </tr> <tr> <td colspan="9"> <table cellpadding="0" cellspacing="0" width="720"> <tr> <td><a href="manual_online.htm" onMouseOver="MM_swapImage('but_online','','../media/int-inner-ov/int_onlineproc.jpg',1)" onMouseOut="MM_swapImgRestore()"><img src="../media/int-inner-up/int_onlineproc.jpg" ALT="Online Manual" name="but_online" WIDTH=110 HEIGHT=29 border="0" id="but_online"></a></td> <td><a href="manual_print.htm" onMouseOver="MM_swapImage('but_procprint','','../media/int-inner-ov/int_procprint.jpg',1)" onMouseOut="MM_swapImgRestore()"><img src="../media/int-inner-up/int_procprint.jpg" ALT="Manual Print/Search" name="but_procprint" WIDTH=129 HEIGHT=29 border="0" id="but_procprint"></a></td> <td><a href="../pages_misc/spanish_translation.htm" onMouseOver="MM_swapImage('but_span','','../media/int-inner-ov/int_span.jpg',1)" onMouseOut="MM_swapImgRestore()"><img src="../media/int-inner-up/int_span.jpg" ALT="Spanish Translation" name="but_span" WIDTH=118 HEIGHT=29 border="0" id="but_span"></a></td> <td><a href="../pages_misc/definitions.htm" onMouseOver="MM_swapImage('but_gloss','','../media/int-inner-ov/int_gloss.jpg',1)" onMouseOut="MM_swapImgRestore()"><img src="../media/int-inner-up/int_gloss.jpg" ALT="Definitions" name="but_gloss" WIDTH=79 HEIGHT=29 border="0" id="but_gloss"></a></td> <td><a href="../pages_misc/forms.htm" onMouseOver="MM_swapImage('but_forms','','../media/int-inner-ov/int_forms.jpg',1)" onMouseOut="MM_swapImgRestore()"><img src="../media/int-inner-up/int_forms.jpg" ALT="Forms" name="but_forms" WIDTH=54 HEIGHT=29 border="0" id="but_forms"></a></td> <td><a href="OLM_106.htm" onMouseOver="MM_swapImage('but_red','','../media/int-inner-ov/int_red.jpg',1)" onMouseOut="MM_swapImgRestore()"><img src="../media/int-inner-up/int_red.jpg" ALT="Red Flags" name="but_red" WIDTH=74 HEIGHT=29 border="0" id="but_red"></a></td> <td><a href="../pages_misc/faq.htm" onMouseOver="MM_swapImage('but_faq','','../media/int-inner-ov/int_faq.jpg',1)" onMouseOut="MM_swapImgRestore()"><img src="../media/int-inner-up/int_faq.jpg" ALT="FAQs" name="but_faq" WIDTH=51 HEIGHT=29 border="0" id="but_faq"></a></td> <td COLSPAN="2"><img src="../media/int-inner-up/int_self.jpg" ALT="" name="but_self" WIDTH=105 HEIGHT=29 border="0" id="but_self"></td> </tr> </table> </td> </tr> <tr> <td 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_075.htm">Backward</a> | <a href="manual_online.htm">Table of Contents</a> | <a href="OLM_077.htm">Forward</a></p></td> </tr> </table> <h1 align="center" class="style6"><strong>EXAMINATION PROCEDURES </strong></h1> <h1 align="center" class="style6">Concentration Accounts</h1> <p class="style2">&nbsp;</p> <p class="style2"><strong>Objective</strong>. <em>Assess the adequacy of the bank&rsquo;s systems to manage the risks associated with concentration accounts, and management&rsquo;s ability to implement effective monitoring and reporting systems. </em></p> <p class="style2">1. Review the policies, procedures, and processes related to concentration accounts. Evaluate the adequacy of the policies, procedures, and processes in relation to the bank&rsquo;s concentration account activities and the risks they represent. 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 concentration accounts. </p> <p class="style2">3. Review the general ledger and identify any concentration accounts. After discussing concentration accounts with management and conducting any additional research needed, obtain and review a list of all concentration accounts and the bank&rsquo;s most recent reconcilements. </p> <p class="style2">4. Determine whether the bank&rsquo;s system for monitoring concentration accounts for suspicious activities, and for reporting of suspicious activities, is adequate given the bank&rsquo;s size, complexity, location, and types of customer relationships. </p> <p class="style2">5. If appropriate, refer to the core examination procedures,  Office of Foreign Assets Control, pages 157 to 159, for guidance.</p> <h2 class="style2">Transaction Testing </h2> <p class="style2">6. On the basis of the bank&rsquo;s risk assessment of its concentration accounts, as well as prior examination and audit reports, select a sample of concentration accounts. From the sample selected, perform the following examination procedures: </p> <ul> <li>Obtain account activity reports for selected concentration accounts. </li> <li>Evaluate the activity and select a sample of transactions passing through different concentration accounts for further review. </li> <li>Focus on higher-risk activity (e.g., funds transfers or monetary instruments purchases) and transactions from higher-risk jurisdictions. </li> </ul> <p>7. On the basis of examination procedures completed, including transaction testing, form a conclusion about the adequacy of policies, procedures, and processes associated with concentration accounts. </p> <p class="style2">&nbsp;</p> <p align="right" class="style2"><a href="OLM_075.htm">Backward</a> | <a href="manual_online.htm"> Table of Contents</a> | <a href="OLM_077.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>