Completion of independent testing for BSA/AML compliance is one of the original pillars of a financial institution’s BSA program. While the frequency of this audit is not specifically defined in any statute, a sound practice is for the financial institution to conduct independent testing every 12 to 18 months, commensurate with the BSA/AML risk profile of the bank.
The goal of a BSA/AML Audit is to identify and document all known compliance issues with the bank’s BSA/AML program in accordance with FFIEC Guidelines. Each audit is tailored to the client’s individual risk profile, but at a minimum will include:
- An evaluation of the overall adequacy and effectiveness of the BSA/AML compliance program, including policies, procedures and processes;
- A review of the financial institution’s risk assessment for reasonableness given its risk profile;
- Appropriate risk-based transaction testing to ensure compliance with recordkeeping and reporting requirements (e.g., SARs, CTRs, CTR exemptions, CIP, and information sharing requests);
- An evaluation of management efforts to resolve past audit or exam violations and deficiencies;
- A review of training for adequacy, accuracy, and completeness;
- A review of the effectiveness of the suspicious activity monitoring systems used for BSA/AML compliance;
- An assessment of the overall process for identifying and reporting suspicious activity; and
- An assessment of the integrity and accuracy of reports used in monitoring for BSA/AML compliance.
Our testing will also cover pertinent sections of the Patriot Act and requirements specified through the Department of Treasury’s Office of Foreign Assets Control (OFAC).
The resulting audit report will give the institution an overall rating and show any compliance issues found.
10-D has developed a reporting process that delivers “Risk Based” facts in a universally readable language and format.
The 10-D Security Difference
- Audit performed by former auditor and examiners with vast experience of the inner workings of financial institutions AND in-depth compliance knowledge.
- Easy to read and understand reports which are delivered promptly.
- Examiner approved work paper solution.
Who Benefits from a BSA/AML Audit?
This service applies to organizations:
- Require quick turnaround of reports and deliverables.
- Whose budget constraints do not allow for “Big Accounting Firm” prices.
- Whose management values their time and lack resources to conduct their own audits.
The Scope of Work
- The scope of our compliance audits follow regulatory requirements and best practices.
- Each engagement will be tailored to meet each client’s unique needs.
- On-site and remote audits available.