BSA/AML Manual

BSA/AML RISK ASSESSMENT EXAMINATION PROCEDURES

Objective. Determine the adequacy of the bank’s BSA/AML risk assessment process, and determine whether the bank has adequately identified the ML/TF and other illicit financial activity risks within its banking operations.

1. Determine whether the bank has identified ML/TF and other illicit financial activity risks associated with the products, services, customers, and geographic locations unique to the bank.
2. Determine whether the bank has analyzed, and assessed the ML/TF and other illicit financial activity risks within the products, services, customers, and geographic locations unique to the bank.
3. Determine whether the bank has a process for updating its BSA/AML risk assessment as necessary to reflect changes in the bank’s products, services, customers, and geographic locations and to remain an accurate reflection of its ML/TF and other illicit financial activity risks.
4. If the bank has not developed a BSA/AML risk assessment, or if the BSA/AML risk assessment is inadequate, complete a BSA/AML risk assessment for the bank.
5. Document and discuss with the bank any findings related to the BSA/AML risk assessment process.