Pocket Program Includes Full Conference Schedule Pre-Conference Workshop BSA Immersion Workshop conducted by Ken Golliher Monday, February 23rd Attend it as a stand alone seminar or add it to the BSA Top Gun Conference FULL CONFERENCE Topics Include... FinCEN In the keynote address, Tom Fleming, Assistant Director for FinCEN’s Office of Compliance will address recent developments in anti-money laundering. How does the current economic situation affect AML compliance, your institution, and your customers? Is there a nexus between fighting fraud and fighting money laundering? How can you leverage your limited resources and fine tune your risk based approach? These questions and more will be answered by one of the leading experts in the field.” OFAC Jerry LiVigni, senior compliance officer at OFAC, will beam into the conference via his office in Washington to answer your OFAC questions and fill you in on constructing an appropriate compliance program, factors to consider in doing your risk assessment, internal controls you should have in place (with details about what OFAC thinks you should be doing in the way of due diligence), audit characteristics, training tips, and the current approach to enforcement (including the new guidelines). ID Theft & CIP Implications CIP regulations require your bank to obtain four pieces of identifying information and use them to verify the customer’s identity “within a reasonable time” after opening an account. Your window for verification also represents the best opportunity your institution has to realize that the person across the desk is an identity thief. The “red flags” that draw identity theft to your attention may trigger specific actions required by other regulations. Finally, reverting to BSA compliance again, your CIP must incorporate a direct pipeline between CIP failures and SAR filing. This area is a microcosm for the increasingly common understanding that anti-fraud and anti-money laundering programs are symbiotic. This presentation deals with these overlapping legal requirements, integrating the two legal structures and helping attendees avoid confusion and missteps. Common Audit/Independent Examination Violations Join our seasoned “common-slipup-investigators” (CSIs) who are accustomed to conducting on site BSA/AML audits for their clients. They explore the most common violations they see in those reviews, explain how to avoid them, and, if necessary, how to correct them. Their comments address both technical compliance with BSA and the development of an appropriate AML program for your institution. Tips for identifying and avoiding common slip-ups are included. Preparing For Your Next On-site BSA/AML Examination You know your regulator will eventually be stopping by to evaluate your institution’s BSA/AML compliance program. This segment focuses on the idea that by actively preparing for that examination, not just waiting for it, you may be able to improve the results. It addresses such things as staying abreast of regulatory hot buttons, reviewing the results of the previous examination, responding to the pre examination questionnaire, the first on site meeting, identifying contact personnel, and a variety of other things you can do to prepare for the inevitable and make certain the evaluation you receive is accurate. Switching to Electronic Filing – Depositary institutions are now down to two ways to file BSA required forms: electronic and on paper. Increasingly, even low volume filers are deciding that electronic filing is the wisest choice. This session will be led by a panel of program attendees that have already made the jump from paper to electronic filing. They will talk about their experiences, what went right and what went wrong and the advice they would offer to banks preparing to make the jump. (If are going to attend the conference and want to be a panelist, send an e-mail to kennyg@bankersonline.com including information about the size of your institution and number of annual filings as well as any other information you care to include.) Salvaging or Responding to An On-site Examination Gone Wrong Somewhere in the course of your on-site BSA/AML examination it becomes apparent that there is a problem. How and when do you begin working toward resolution? What problems can be resolved while the examiners are still on site? What actions might soften a regulator’s perception that an enforcement action may be necessary? When should outside assistance; e.g. consultants or legal be sought? What can be done in anticipation of receiving the written report of examination? How do you prioritize tasks after receiving the written report? How do you report progress or lack of progress on resolution to the Board of Directors? Conducting an AML Investigation Your sensors have brought a brought a specific customer to your attention; e.g. he’s shown up on a report, been named in a grand jury subpoena, or is the subject of a newspaper article that suggests he’s on the wrong side of the law. A decision has been made to investigate. How do you decide what resources to allocate, what activity and documentation to review and how far back do you go? Are other customers involved? Other banks? Does the documentation you have support your theory of what the suspicious activity might be? SAR or no SAR? At what point do we contact law enforcement and/or our regulatory agency? If “no SAR” how do you document your decision not to file? What have you learned from this scenario about your systems’ strengths and weaknesses or those of your personnel? SAR Review Teams: What They Do and How Banks Can Help Creating and supporting SAR Review teams is a top priority of the Department of Treasury and the Department of Justice. The SARs your bank generates ARE being scrutinized by one of these teams. This session explains how these teams operate and what they look for. You will hear some suggestions for more efficient and effective SAR narratives and how your bank can best cooperate with law enforcement. Several criminal cases that were developed from SARs are highlighted. Q & A Session Attendees who have a nagging question that they did not get a chance to ask in a general session get a real opportunity in this module. We will have several of our gurus on the stage for your convenience and will have questions submitted in advance during the preceding two days. We will also take questions from the audience. Finally attendees who have a specific question they would like to submit to all or part of the audience; e.g. “How many banks with less than $500 million in assets have a full time BSA/AML officer?” This session is yours to design as you see fit to maximize your benefits from the conference. (Polling questions must be turned in before the end of Day Two. Best Practices for Banking MSBs Banking MSBs can be complicated. First you need to be sure you found them all! Then, you must obtain adequate documentation and determine their individual risk levels in compliance with published Interagency Guidance. Most importantly, you need to monitor MSBs more closely for suspicious activity. This session discusses detailed "best practices" for banking MSBs from a bank's perspective. It is not an academic discussion; it focuses on the program implemented by a financial institution whose MSB compliance efforts have been proven to be both efficient and effective. Writing or Evaluating Independent Reports of Examination Per the FFIEC BSA/AML Handbook, regulatory personnel use this written report to scope their on site examinations. BSA Officers use it to allocate resources and establish priorities. Finally, board members rely on it to gauge the quality of their institution’s compliance efforts. What should the written report from the BSA/AML audit contain? How should it be organized? How should findings be prioritized? Who is the expected readership? These panelists, all experienced BSA/AML auditors, discuss the development of the written report beginning with the drafting of the engagement letter and key decisions as to how the independent examination is to be tailored to the institution. This is a practical, how to session presented from the perspective of both the architect and the end user of this critical document. BSA/AML Implications of Remote Deposit Capture New products and services require a risk analysis for BSA/AML implications. This session will discuss the risks inherent in Remote Deposit Capture services, with a focus on potential money laundering and other BSA risks. As Mary Beth and John involve you in their discussion, you'll learn how you can identify Remote Deposit Capture risks in your institution, and what you can do to mitigate and manage them. Writing the SAR Narrative & Describing Supporting Documentation Okay, you get the part about telling them “Who, what, when, where, why, & how?” in the SAR narrative. Yet, you also want to know how to balance out the amount of detail you include, supplying law enforcement enough information to peak their interest without burying a non banker in minutiae. Also, how do you make certain your narrative supports “data mining” that might help law enforcement link your SAR with others filed on the same types of activity or even the same individuals? Finally, does your description of “supporting documentation” provide your institution with an internal control or just a guess on what documentation you may turn over to law enforcement after a SAR filing? This presentation focuses on rendering an effective narrative and describing the documentation necessary to give another reader the same suspicions you have. Transaction Testing: What & How Much Our experienced panel of BSA auditors addresses the key issue of transaction testing and the role it plays in both the regulatory review process and the independent examination. The panelists explain how to use a "risk based" approach in the independent examination to determine where testing is appropriate, how much testing should be done, and how testing should be documented. They also explain how to draw conclusions from the results and how those conclusions can be supported. Each panelist will focus on a circumstance where transaction testing brought forth critical information in an independent examination that a review of policies, procedures, and processes would have never brought to light. Prepaid Cards The popularity of prepaid cards and payroll cards continues to grow and well-managed card programs can be quite profitable. They aren't without risks, however, and the AML/BSA implications of card activity must be understood and managed. In this session, Brenda Canterbury and Mary Beth Guard team up to provide practical tips for assessing the risks and utilizing the tools at your disposal to identify problem cardholders and transactions. They'll give you a quick rundown of the AML-related regulatory issuances on prepaid cards, and they will provide real-life cases to illustrate how money laundering and other financial crime can take place with the cards. From setting parameters for doing CIP to working with your card processors and having an escalation process for SAR-worthy incidents, you'll get guidance and information you can take home and put to use immediately, whether you're just getting into a card program or already have one in place. Insider Tips for Finding Just About Anything Online When it comes to performing due diligence on your customers, the Internet can be your best friend if you know where to search and what to look for. Criminal records, negative news stories, tax liens, civil suits. Lies about property. Enforcement actions from agencies like the FTC. Addresses associated with known fraud. Property values. Clues to identity theft. Information discrepancies. Risky activities. Shady business practices. Relationships. Insight into character from social networking sites. Addresses or lifestyles that don't comport with what you know about the customer. We show you where and how to dig up whatever dirt there might be with tips and tricks that will make you a searching whiz. Mortgage Fraud and BSA/AML Considerations When regular payments are being made on mortgage loans, it's easy to believe all is well, but the fact is mortgage fraud is rampant and the dollar amount involved is staggering. This SAR-triggering activity needs to be unearthed at the earliest possible opportunity to cut losses. In this session, Mary Beth Guard will provide details about a wide range of mortgage fraud schemes and equip you with checklists for what to look for at the time of loan application, as well as within your existing mortgage loan portfolio. From a $100 million scam by a single mortgage broker to frauds by attorneys, title companies, so-called foreclosure consultants, crooked loan officers, and lying homebuyers, you'll hear the techniques that were used to fool lenders and what you need to do to discover and report them. New CTR Filing Exemption Rules Take Effect Effective January 5, 2009 new rules simplified and streamlined the process for "mandatory" and "discretionary" exemptions from Currency Transaction Report (CTR) filing. This session incorporates analysis of the new rules into a detailed review of the overall exemption process. Early analysis and adoption of the new rules will allow attendees to take advantage of some of the time saving features regarding biennial filings in the first quarter of 2009.