Independent BSA/AML Audit

Credit Unions are subject to Bank Secrecy Act and anti-money-laundering (BSA/AML) regulations. Every 12 to 18 months they are required to conduct annual independent audits of their AML compliance programs. Many find the challenge to maintain staff members with the appropriate experience in this highly specialized area. Credit Unions wonder how they will remain current with the regulations and subsequent areas that must be prioritized. Managing to the Audit can be costly and extremely time consuming even to the largest credit union.

With AuditLink’s qualified staff and innovative approach to business, we are able to conduct your credit unions required annual BSA Audit in a timely and personalized manner. Our engagements include 8 facets and can be customized based upon the needs of our credit union and overall urgency.

  1. An evaluation of the overall integrity and effectiveness of the BSA/AML compliance program, including policies, procedures and processes.
  2. A review of the Member Identification Program (MIP) to verify the credit union’s adherence to proper identification and Office of Foreign Assets Control (OFAC) requirements.
  3. A review of the credit union’s risk assessment for reasonableness given the institution’s risk profile (products, services, members, and geographic locations).
  4. Appropriate transaction testing to verify the credit union’s adherence to the BSA record keeping and reporting requirements (such as MIP, SARs, CTRs, CTR exemptions and information sharing requests).
  5. An evaluation of management’s efforts to resolve violations and deficiencies noted in previous audits and regulatory examinations, including progress in addressing outstanding supervisory actions, if applicable. A review of staff training for adequacy, accuracy, and completeness.
  6. A review of the effectiveness of the suspicious activity monitoring systems (manual, automated or combination) used for BSA/AML compliance. Related reports may include suspicious activity monitoring reports, large currency aggregation, monetary instrument, funds transfer, nonsufficient funds (NSF), large balance fluctuation and account relationships.
  7. An assessment of the overall process for identifying and reporting suspicious activity, including a review of filed or prepared SARs to determine the accuracy, timeliness, completeness, and effectiveness of the credit union’s policy.
  8. A review of filed or prepared CTRs to determine the accuracy, timeliness, completeness, and effectiveness of the credit union’s policy.

 

 

At the end of the review period your credit union will receive a comprehensive report and list of recommendations. This report can be shared with your regulators and service providers. Further strategic planning based on the recommendations can be provided upon request.

Since signing on with AuditLink 2 years ago, Northern Hills FCU has saved thousands of dollars in compliance and audit services. AuditLink performs the daily log management and saves us time by helping us concentrate on only those transactions that require further scrutiny. They help us keep pace with the regulatory changes on the horizon and provide valuable advice about potential changes we need to implement.