Auditing BSA/AML: Scoping the Audit

When it comes to auditing a BSA/AML program, a good place to start is by looking back at what you’ve done or, in some cases, not done. Reviewing the risk assessment can give a good snapshot of where the potential risks lie and where to concentrate your efforts. Reviewing old audit reports or reviews to see where there have been problems and whether (and or how) those have been addressed/corrected. One important area you don’t want to overlook when determining the scope of an audit is whether any changes have occurred. For example, has the financial institution added any new products or services? Is it expanding into any new geographical areas? Has there been an increase in high-risk customers? There are many such changes that can directly impact a financial institution’s BSA/AML program and it’s important to spend some time here to ensure they have been evaluated, addressed and incorporated, as appropriate.

Kevin explains more in the video.

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Kevin Edwards

Kevin brings years of experience and a unique perspective on regulatory matters to our clients. A self-proclaimed geek and accredited CRCM, Kevin is also a recovering attorney with experience as in-house counsel for a large regional bank and one of the leading national title insurance providers. For reasons unknown, Kevin decided to leave the safety and serenity of his desk job to seek fortune and glory as a wandering adventurer. Like a bank compliance version of Kwai Chang Caine, The Man with No Name or Don Quixote, he now travels the land seeking to help those in need and righting compliance wrongs, wherever he may find them. Kevin lives in Sioux Falls with his two children, who are surprisingly normal after having endured their father’s vivid imagination for their entire lives. He won’t admit to having any hobbies, because apparently “Regulations never sleep.” (While he does say this in his Batman voice, we’re pretty sure he’s joking.) From the looks of his Facebook page, he likes the outdoors and spending time with his large extended family (who seem like relatively normal people).

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Auditing BSA/AML: Scoping the Audit