(a)
Purpose. This section is issued to ensure that all state member banks establish
and maintain procedures reasonably designed to ensure and monitor
their compliance with the provisions of the Bank Secrecy Act (31 U.S.C.
5311
et seq.), and the implementing regulations promulgated
thereunder by the Department of Treasury at 31 CFR 103,
* requiring recordkeeping
and reporting of currency transactions.
(b) Establishment of BSA compliance program.
(1) Program requirements. Each bank shall develop
and provide for the continued administration of a program reasonably
designed to ensure and monitor compliance with the recordkeeping and
reporting requirements set forth in subchapter II of chapter 53 of
title 31, United States Code, the Bank Secrecy Act, and the implementing
regulations promulgated thereunder by the Department of Treasury at
31 CFR 103.* The compliance program shall be reduced to writing, approved
by the board of directors, and noted in the minutes.
(2) Customer
identification program. Each bank is subject to the requirements
of 31 U.S.C. 5318(l) and the implementing regulation jointly
promulgated by the Board and the Department of the Treasury at 31
CFR 103.121, which require a customer identification program to be
implemented as part of the BSA compliance program required under this
section.
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(c) Contents of compliance
program. The compliance program shall, at a minimum—
(1) provide for a system of internal
controls to ensure ongoing compliance;
(2) provide for independent testing for compliance to be conducted
by bank personnel or by an outside party;
(3) designate an individual or individuals
responsible for coordinating and monitoring day-to-day compliance;
and
(4) provide training for appropriate
personnel.
