Advanced BSA/AML

Tuesday, December 08, 2020 - Wednesday, December 09, 2020   iCalendar Central Standard Time

Compliance with the Bank Secrecy Act (BSA) continues to be a top priority of the regulators. Examiners are increasing their focus to ensure financial institutions are complying with all aspects of the Bank Secrecy Act (BSA) and its many regulatory requirements. Potential legislative changes to the Bank Secrecy Act are in the works in the U.S. House and Senate.  In addition, the dramatic increase in the number of sanctioned individuals and entities and the growing complexity of the OFAC sanctions. And, the changing landscape of banking the cannabis industry continues to be an evolving hot topic.

This comprehensive 2-day program features industry specialists who will discuss the latest changing BSA topics above as well as other BSA/AML priorities, and offer tips and tools to develop and manage an effective BSA program. Topics this year include Updating Your Policy and Procedures, Cannabis Banking Policy Revisions, BSA Implications with COVID-19, and more. Attendees will review "real world” situations, and develop "take-aways” that can be implemented back at their banks, and will benefit from shared knowledge, networking, and best practices. This school assists financial institutions in fulfilling the annual training requirements by the BSA regulations. Be sure and register for this timely program which provides an in-depth coverage of current trends and tools for today's BSA officers and team members.  

Day 1

Recap of Major AML/BSA Trends in 2020 
During this update, we will focus on current BSA/AML hot topics, COVID-19 impact to BSA ML/TF trends and the supervisory and regulatory guidance that outlines the responsibility for BSA/AML compliance.  This session will highlight recent FinCEN CTR updates, updated 314(a) fact sheet and additional new FinCEN initiatives impacting financial institutions.

Update of FFIEC BSA/AML Examination Manual - April 15, 2020, Step-by-Step Guide for Update Your BSA Program  
This interactive session will highlight the April 15, 2020 update, provide a step-by-step implementation strategy, outline the key components, and develop a template of the revised sections of the Manual.

Managing Alerts and False Positives
Despite decades and billions of dollars in industry investment, over 95 percent of system-generated alerts are closed as “false positives” in the first phase of review, with approximately 98 percent of alerts never culminating in a suspicious activity report (SAR).  In 2018, FinCEN issued a $185 million civil money penalty (CMP) against a large financial institution for “willfully violating the Bank Secrecy Act”.  One of the primary violations uncovered was that “…. Bank chose to manipulate their AML software to cap the number of suspicious activity alerts, rather than increasing staffing to comply with anti-money laundering laws in a timely manner." This session focuses on tools and best practices for managing alert case management and identifying what might be excessive false positives for your institution and how to appropriately respond.

Best Practices: Protecting Your Financial Institution – Breakout Session
Often bankers comment that enforcement actions only happen to the big banks.  Regulators are encouraging senior management and boards to stay abreast of enforcement actions. During this session, we will examine recent consent order(s) with specific BSA violations to share with senior management.  This session also includes recommendations and best practices for on-going preparation and organization for audits and examinations.  During the breakout session, bankers have the opportunity to share and learn from other Illinois Bankers what the current hot topics are during recent BSA/AML examinations and audits.

SAR Completion: Tips and Tools – To File or Not File  
So, what are the key SAR tips, tools, and best practices for completing the SAR investigation, writing the report and the decision to file or not file these reports incorporating 2020 FinCEN updates.  This session includes both key recommendations and an exercise of reviewing a SAR filing and what could have improved the narrative as well as the documentation. 

Cannabis Banking: MRB, Hemp, and CBD – To Bank or Not Bank? 
Marijuana continues to be one of the key topics in financial institutions with over 30 states legalizing medical or recreational marijuana. What lessons can be learned from around the state?  What are the risks and rewards of cannabis banking?  What if you have customers that want a loan for hemp-related business? How do you decide what to do? This session will review the current and proposed legislation as well as providing practical guidelines in determining how your financial institution could service these industries. 

Cannabis Banking: Update Your Policy and Procedures

OFAC Update
More than $8 billion in AML fines handed out in 2019, with USA and UK leading the charge: Barring a massive $9 billion penalty in 2014, last year could have been a record at nearly double the overall actions and total penalty figure of the prior year.  And, this year, the trend of increased penalties has continued.   This session will explore both recent enforcement actions, high risk OFAC areas, as well as best practices.

Ensuring BSA Team Cross Training and Development
Regardless of a bank’s asset size, ensuring BSA compliance mandates that cross training and team development is a critical component of the BSA/AML function.   This session highlights best practices and tools for on-going learning for the BSA team and documented accountability.

Day 2

Recap of Day 1

Insider Abuse and Complicity and Red Flags
Sadly, there are many insider fraud schemes and related scenarios that can be perpetrated against your institution in an attempt to hide money laundering (ML) activities. Discovering employees in the early stages of their complicit acts is crucial to avoidance or mitigation of serious impact on the financial institution.  During this session, we will focus on the what are the insider red flags and tools, tips, and takeaways for monitoring and proactively minimizing these types of losses. 

A fast-paced, bonus session highlighting key BSA hot topics including:

  • Common Beneficial Ownership Challenges and Recommendations
  • POATMs and MSBs Tips and Tools
  • Trade-Based Money Laundering Trends
  • Banking Non-Resident Aliens
  • Top 5 Risk Assessments and Risk Ratings Musts
  • and more…

Getting the Most from Your Core Provider – Breakout Group
Is your bank considering purchasing or adding AML Software?  What are the pros and cons of the AML software companies?  Attendees will have an opportunity for sharing, networking, and problem solving around key challenges with core processors and BSA/AML software implementation as well as no AML software.  

Elderly and Vulnerable Adults Financial Exploitation – Can We Really Make a Difference?
Elder and at-risk abuse happens every day and takes many forms. It’s estimated that only one out of 10 cases of elder abuse are actually reported. As a result, no one knows exactly how many older Americans are being abused, neglected or financially exploited every year. But we do know that financial exploitation is the fastest growing form of abuse of seniors and vulnerable adults in the country today.  In this session, we will discuss the financial abuse of the elderly Illinois statutes with a focus on recommendations for helping combat the financial exploitation of elderly and at-risk customers.

Tips, Tools, and Takeaways
Sharing of best practices, tips, and tools, discussion of common challenges and opportunities will highlight the action plan for implementation back at the bank.

What’s Ahead in 2020

Learning Objectives
At the conclusion of this program, participants should be able to:
•    Prepare for immediate and upcoming BSA/AML regulatory changes and challenges
•    Minimize BSA/AML risks in a heightened expectation environment
•    Explore the latest updates and changes to the BSA/AML laws and regulations
•    Prepare for your next BSA examination and audit
•    Network with other banking BSA/AML compliance professionals in experiences and solutions 

Audience Designed for those who have a working knowledge of BSA compliance including BSA, AML, Compliance and Fraud Officers Team Members, and Auditors. Individuals with accountability for BSA Compliance will also benefit from this program, such as: retail management, risk management, operations, and employee development.

Continuing Education
ABA 14.50 CAFP, 14.50 CRCM Credits

Facilitator Dianne Barton, President, Performance Solutions, Inc. (PSI)

Per Person Fee (Includes Limited Time OnDemand Access)
M $489 / NM $829