BSA for Lenders

BSA examiners are digging deeper and beginning to ask more questions about the lending function in recent BSA exams. Could a BSA examiner possibly find loan fraud in your files that had not been detected by your bank's or credit union’s due diligence process? Your financial institution should have a system in place for detecting false statements and attempts at identity theft on a loan application. Will lenders know these activities may require a SAR (Suspicious Activity Report) to be filed? Does your “system” work?

QUESTION: What does the FFIEC Exam Manual for BSA say about the training requirement for lenders?

ANSWER: "Examples of money laundering activity and suspicious activity monitoring and reporting can and should be tailored to each individual audience. For example, training for tellers should focus on examples involving large currency transactions or other suspicious activities; training for the loan department should provide examples involving money laundering through lending arrangements.”

QUESTION: Can your financial institution pass this exam objective?

ANSWER: "Assess the adequacy of the financial institution’s systems to manage the risks associated with lending activities, and management’s ability to implement effective due diligence, monitoring, and reporting systems.”

Register for this short training session and help the lenders and loan staff at your bank or credit union understand their responsibilities by hearing “real life” examples of situations that could trigger a filing of a SAR (Suspicious Activity Report).

What You Will Learn:

  • What are five reasons to conduct BSA training for Lenders?
  • What are the three stages of money laundering and can this happen in the lending area?
  • What are some of the BSA “red flags” and risk factors in lending?
  • What types of due diligence questions should you ask a loan applicant for BSA compliance?
  • Steps for BSA due diligence throughout the life of the loan
  • What are the six types of lending-related reasons of attempted or actual suspicious activity that must be reported on SAR’s? What are some examples that have resulted in prosecution?
  • Steps for effective CIP loan compliance. NEW!! – Overview of beneficial ownership rule that becomes the 5th pillar for BSA on May 11, 2018; it’s not too early to start an implementation plan.
  • Examples of Loan Fraud and suggestions for prevention

Who Should Attend?

Loan Officers, Loan Assistants, Loan Administration personnel, Compliance & BSA Officers, Risk Managers.