When it comes to BSA compliance, we like to say your risk assessment is your sword and shield. First, it identifies areas of risk in your institution. It helps you see those higher-risk areas that maybe you should “attack” more robustly with additional policies/procedures. It can also “protect” you from criticism by your examiners. For example, if an examiner asks why you don’t have policies or procedures related to a particular area, you can tell them that your risk assessment has determined it is an area of very low risk for your institution. While your Board may not actually develop the risk assessment, they should have a level of awareness as to the BSA/AML risks facing your institution. They cannot manage what they don’t know.
Kevin explains more in the video.
Video Highlights:
- A risk assessment can be used to both attack and defend BSA/AML risks.
- It’s important the risk assessment addresses products, services, customer types, locations, and potential other risks.
Published
2023/11/06
