AML TS - Final Handouts

8/6/2019 AML TS - Final Handouts

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OComptroller of the CurrencyAdministrator of National Banks

A Telephone Seminar

USA Patriot Act and Its Impact on

Sound Anti-Money Laundering ProgramsWednesday, December 11, 2002 andThursday, December 12, 2002


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John D. Hawke, Jr. was sworn in as the 28th Comptroller of the

Currency on December 8, 1998. After serving for 10 months undera Recess Appointment, he was sworn in for a full ve-year term as

Comptroller on October 13, 1999.

The Comptroller of the Currency is the Administrator of National

Banks. The Ofce of the Comptroller (OCC) supervises about 2,200

federally chartered commercial banks and about 52 federal branches

and agencies of foreign banks in the United States comprising more

than half of the assets of the commercial banking system. The Comp-

troller also serves as a Director of the Federal Deposit Insurance

Corporation, the Federal Financial Institutions Examination Council,

and the Basel Committee on Banking Supervision.

Prior to his appointment as Comptroller, Mr. Hawke served for 3 years as Under Secretary of the

Treasury for Domestic Finance. In that capacity he oversaw the development of policy and legislation

in the areas of nancial institutions, debt management, and capital markets, and served as Chairman

of the Advanced Counterfeit Deterrence Steering Committee and as a member of the board of the

Securities Investor Protection Corporation. Before joining Treasury, Mr. Hawke was a Senior Partnerat the Washington, D.C., law rm of Arnold & Porter, which he rst joined as an associate in 1962.

At Arnold & Porter he headed the Financial Institutions practice, and from 1987 to 1995 he served as

Chairman of the rm. In 1975 he left the rm to serve as General Counsel to the Board of Governors of

the Federal Reserve System, returning in 1978.

Mr Hawke was graduated from Yale University in 1954 with a B A in English From 1955 to 1957 he

John D. Hawke, Jr.

Comptroller of the Currency


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Virginia Hagan currently serves as director of Compliance for the Ofce of the

Comptroller of the Currency (OCC). Ms. Hagan joined the OCCs Compli-

ance Division on January 14, 2002, after working closely with the Compliance

management team on signicant transition and restructure issues. Prior to that

time, she was assigned to Wachovia as examiner-in-charge.

She joined the OCC in late 1976 moving to Houston, Texas. She worked in

the Houston eld and Dallas district ofces, supervising both community and

regional banks during the boom and bust years.

In 1991, she relocated to New England and served both as examiner-in-charge of Fleet NB and FNB

Boston. In 1995, she assumed duties at First Union NB (now Wachovia) in Charlotte, North Carolina.

Ms. Hagan holds a Bachelor of Science in nance from the University of Virginia, Charlottesville, Vir-

ginia.

Virginia Hagan

Director, Compliance Division

Ofce of the Comptroller of the Currency


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Steven D. Lindsey

Assistant Deputy Comptroller for Compliance, Large BanksWest


Steven Lindsey is assistant deputy comptroller (ADC) of Compliance in Large

Banks West for the Ofce of the Comptroller of the Currency (OCC). He is

also a charter member of the OCCs National Anti-Money Laundering Work-

ing Group. Prior to becoming an ADC, Mr. Lindsey worked as a Compliance

examiner in OCCs Large Bank Supervision.

From 1990-1994, he was responsible for establishing OCC policy on issues

surrounding Anti-Money Laundering/Bank Secrecy Act, the Right to Financial

Privacy Act and the Flood Disaster Protection Act in Washington, D.C. Mr.

Lindsey also served as OCCs liaison with the Financial Crimes Enforcement Network (FinCEN).

In 1993, he was a member of the U.S. Treasury Departments Money Laundering Task Force. The task

force identied ways to reduce the regulatory burden associated with Bank Secrecy Act compliance with-

out compromising law enforcement access to needed information.

Mr. Lindsey joined the OCC as a eld examiner in the Southwestern district, Tulsa, Oklahoma duty sta-

tion. He is a native of Kentucky and holds a B.S. degree from Western Kentucky University.


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Daniel P. Stipano

Deputy Chief Counsel, Law Department


Daniel P. Stipano is the deputy chief counsel for the Ofce of the Comptroller

of the Currency in Washington, D.C. In this position, Mr. Stipano supervises

the OCCs Enforcement and Compliance, Litigation, Community and Con-

sumer Law, and Administrative and Internal Law Divisions. He also super-

vises the OCC district counsel staffs in the Midwestern, Southwestern, and

Western district ofces.

Prior to his appointment as deputy chief counsel, Mr. Stipano served from

1995-2000 as the OCCs director of the Enforcement and Compliance Divi-

sion. In this position, he was responsible for taking administrative enforcement actions against national

banks and their institution-afliated parties, and the development of enforcement-related policies and pro-

cedures. From 1985-1995, Mr. Stipano was an assistant director and staff attorney in the Enforcement and

Compliance Division.

From 1983-1985, Mr. Stipano was a staff attorney at the Federal Energy Regulatory Commission, and an

associate with the law rm of Jackson and Jessup, P.C., in Arlington, Virginia. Mr. Stipano is a member

of the Virginia State Bar and the American Bar Association. He is also a member of the Treasury Depart-

ments Bank Secrecy Act Advisory Group, and the National Interagency Bank Fraud Working Group.


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Susan Quill

Compliance Specialist and National Bank Examiner, Compliance Division


Susan Quill is a compliance specialist and national bank examiner in the

Ofce of the Comptroller of the Currency (OCC). She is one of three OCC

Bank Secrecy Act/Anti-Money Laundering policy specialists and is currently

working with other bank regulators to develop USA Patriot Act examination

procedures.

Ms. Quill chairs the National Anti-Money Laundering Group (NAMLG), the

OCCs focal point on money laundering supervision issues. From 1995 to

2001, she was team leader of the Consumer team in OCCs Community and

Consumer Policy Division.

Ms. Quill joined the OCC in 1983 as a eld examiner in the Miami duty station. She was commissioned a

national bank examiner in 1987 and has worked extensively in the eld examining community banks and

large and problem institutions. She holds a Bachelor of Science in nance from the University of Geor-gia, Athens.


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Polling Question

12/11 and 12/12 Teleconference

1. How many people are at your listening site? Press:

1 for one person

2 for two people

3 for three people

4 for four people5 for five people

6 for six people

7 for seven people

8 for eight people

9 for nine or more people listening at your site.


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USA Patriot Act and I

on Sound AML P

A Telephone Semina

Wednesday, December 1

Thursday December 12


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Intr

Todays Seminar: Requirements of the USA Patrio

Key Provisions and Responsibil Anti-Money Laundering/Bank S


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USA Patriot Act

Was signed into law on 10/26/0

Contains new measures designemoney laundering and terrorist f

Requires numerous regulations


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USA Patriot Ac

Section 312 Special Due Diligence All institutions must have due diligence

foreign correspondent and private bank

Enhanced due diligence for offshore banon-cooperative countries and territorie

money laundering concern countries:


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USA Patriot Ac

Section 312 Special Due Dilig(contd)

Minimum standards for private ba

accounts:

Ascertain identity of nominal and be


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USA Patriot Act (co


Regulations required within 180 d

enactment

Effective 270 days after enactmen


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USA Patriot Ac


Interim rule issued 7/23/02

Statutory requirements apply to all b7/23/02

Private banking requirements apply


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USA Patriot Ac


Interim rule guidance:

High risk areas Deposit accounts or equivalent and

provide third party services or for no


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USA Patriot Ac

Do you have foreign correspondent ac

foreign private banking accounts as de


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USA Patriot Ac

Section 313 Foreign Shell BanProhibition on accounts with offsh

banks

Requirement that institutions take

steps to ensure that their correspon


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USA Patriot Ac

Section 313 Foreign Shell Bank Ba Final rule issued 9/26/02

Defines covered institutions broadly to incl

and others

Adopts broad statutory definition of corresp

Establishes certification procedure


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USA Patriot Ac

Questions?


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USA Patriot Ac

Section 314 Cooperative Efforts Requires Treasury to issue regulations w

of enactment to encourage cooperation

institutions, regulators, and law enforce Regulations may include procedures on

Terrorist financing matters


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USA Patriot Ac

Section 314 Cooperative EfforContents may also include require

Designated contact person at each in

Procedures to protect shared inform

Safe harbor for institutions that sh


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USA Patriot Ac

Section 314 Cooperative EfforFinal rule issued 9/26/02

Establishes reporting mechanism thr

Creates a safe harbor for institutions

information after filing notice with F


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USA Patriot Ac

Questions?


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USA Patriot Ac

Section 319 Bank RecordsBanks must produce records relat

money laundering compliance wit

of examiners request for all U.S.accounts

Institutions must maintain owners


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USA Patriot Ac

Have you notified FinCEN that y

share information as described in


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USA Patriot Ac

Do you maintain the documentation on

of your U.S.-based accounts in offshore


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USA Patriot Ac

Section 326 Customer Identificatio Requires Treasury and agencies to issue

10/25/02 setting forth minimum standa

customer identification at account open Minimum requirements include reasona

for:


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USA Patriot Ac

Section 326 Customer Identifi(contd)

Treasury must consider:

Types of accounts

Methods of opening accounts


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USA Patriot Ac


NPR issued 7/23/02

Definitions: Account: Ongoing relationships, e.g

transaction, or credit accounts of perso


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USA Patriot Ac


NPR (contd)

Minimum requirements:

General:


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USA Patriot Ac

Section 326 Customer IdentificatioNPR (contd)

Minimum requirements (contd):

Identity verification procedures:

Obtain name, date of birth, address, ta

(passport or other government-issued

at opening


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USA Patriot Ac

D tl lt Offi f F


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USA Patriot A

Section 326 Customer IdentificatioNPR (contd)

Minimum requirements (contd):

Maintain records for five years

Check suspected terrorist lists issued by fed

Provide notice to customers


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USA Patriot Ac

Section 327 Consideration of Laundering Record

Requires agencies to take instituti

money laundering record into acc

mergers


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USA Patriot Ac

Questions? BSA/AML E P


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BSA/AML Exam Pr

Commun

Examiners: Evaluate the BSA/AML Compli

Program (policies, controls, train

hiring practices, compliance off

oversight)


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Planned Revisions to Examination

Comm

Compliance examinations integrsafety & soundness examination

OCC risk assessment of each ba

OCC testing done as warranted

t

BSA/AML E P


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BSA/AML Exam Pr

Lar

Quality of risk management evarequired procedures cover polic

processes, personnel, controls

Quantity of risk evaluation proc

performed under certain circum


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Planned Revisions to Examination

Quality of risk management evahowever, no minimum required

Quantity of risk evaluation; as b

performed under certain circum USA Patriot Act exam procedur


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BSA/AML Exam Pr

Community and Lar

Do you have BSA/AML audit/r

programs that focus on high risk


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Results of 2002 Speci

Scope of special examinations

Findings; see also OCC Advisory Letter 20 Have we done a risk assessment to identify high

products? Do we have monitoring systems in place to iden

activity?


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Exam Procedures

Exam

Questions?


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Examination Expectation

USA Patriot Act Exam Procedu 2003 Specialized Examination P

2003-2004 USA Patriot Act Exa



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on Sound AML P

Lays out ID requirements and spdiligence categories

Includes expectations for foreign

correspondent and private banki Strengthens monitoring expecta


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Whats Next at

Money Laundering: A Bankers GuAvoiding Problems

Expanded training for examiners throemployee development program

Primary contacts:

For community banks the assistant dep


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on Sound AML P

Results of Pollin


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on Sound AML P

Question and Ans


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on Sound AML P

Web sites:

To Order Telephone Seminar Publications
http://www.occ.treas.gov/http://www.occ.treas.gov/


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p

PREPAYMENT IS REQUESTED. Please complete the form below with check made payable to the Comptroller of the Currency a

return to: Comptroller of the Currency, PO Box 73150, Chicago, IL 60673-7150.

PUBLICATIONS AMOUNT

Outsourcing Your Audit Function, April 2002 $

Risk Management Principles for Third-Party Relationships, August 2002 $

USA Patriot Act and Its Impact on Sound Anti-Money Laundering Programs, $December 2002 (Available February 2002)

Each package consists of the handouts, a transcript of the seminar, and a tape of the seminar. $75.

TOTAL AMOUNT ENCLOSED $

Name of Firm:

Attention:

Address:

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Taxpayer Identication Number (TIN, EIN, SSN) .This number may be used for the collection and reporting of any delinquent amount arising from doing business with the federal government pe31 USC 7701.

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Documents

AML TS - Final Handouts