Anti Money Laundering and Suspicious Activity Reporting Training

The Financial Crimes Enforcement Network (FinCEN) has issued regulations requiring financial institutions to implement anti-money laundering (AML) programs to help curtail suspicious financial activity as it relates to transactions like mortgages.

FinCEN has finalized regulations that require non-bank residential mortgage lenders and originators develop anti-money laundering programs and file suspicious activity reports (SARs) as FinCEN has traditionally required other types of financial institutions to do.

Just like the Federal Trade Commission (FTC) Red Flags Rule and Grim-Leach Bliley (GLB) Safeguard Rule requirements, the Anti Money Laundering (AML) plan will be different for every company as all companies vary based on size, scope, complexity. In other words, plans will not be identical. Financial Strategies AML / SARS training course accomplishes 1 of the 4 minimum requirements under the new rules:

  • the development of internal policies, procedures, and controls;
  • the designation of a compliance officer;
  • an ongoing employee training program; and
  • an independent audit function to test programs.

This course will give an overview of the changes for non-bank lenders and originators and can be used as a guide to creating internal policies and procedures as well as appropriate tools needed to monitor employee’s compliance. Included is a short exam to complete prior to certification.

Those who are exempt from these requirement are as follows:

  • Agency of the US government, state, or local government doing business as 31 U.S.C. 5312(a)(2)
  • Pawnbrokers
  • Travel agency
  • Telegraph company
  • Seller of vehicles, aircraft, boats
  • Person in real estate closings and settlements
  • Private banker
  • Commodity pool operator/trading advisor
  • Investment company
  • Bank not subject to regulation by federal functional regulator
  • Persons described in section 1010.100(t)(7)

You may research the above mentioned laws on the FDIC web site.

Those who are not exempt must develop a written AML program to prevent money laundering or financing of terrorist activities. The program must incorporate policies, procedures and internal controls in compliance with FinCEN rules. In addition, a compliance officer must be designated for the company.

On-going training and program maintenance must be performed in compliance with schedules mandated by FinCEN. Testing and monitoring of the program must also be in compliance with FinCEN. Non-compliant entities may be in violation of BSA.

Companies must develop an AML program by August 13th, 2012. Failure to complete an AML program may constitute a violation of BSA.

You may review the rules and regulations in full and in their final state on the FinCEN website at http://www.FinCEN.gov.