Fincen Clarifies Independent Review Requirements for MSB AML Programs
The Department of the Treasury Financial Crimes Enforcement Network (Fincen) recently published Frequently Asked Questions (FAQs) providing guidance for money service businesses (MSBs) in connection with their anti-money laundering (AML) programs.
Under the Bank Secrecy Act (BSA), MSBs must establish an AML program which sets forth at a minimum: internal policies, procedures, and controls; designates a compliance officer; provides for ongoing employee training; and provides for an independent audit function to test programs. 31 U.S.C. Section 5318(h).
BSA regulations state that this AML program must "provide for independent review to monitor and maintain an adequate program." 31 CFR Section 103.125(d)(4).
The new guidance clarifies that while the BSA regulations require an independent review, a formal audit by a certified public accountant or third-party consultant is not required. The independent review may be conducted by an officer, employee or group of employees of the MSB. However, the review may not be conducted by the designated compliance officer or officers or employees that report directly to the compliance officer.
The FAQs also provide clarification as to the scope and frequency of the independent review and documentation and management reporting requirements.
The full text of the guidance can be found at the Fincen website.
