FFIEC Releases Updates to the BSA/AML Exam Manual

The updates offer further transparency into the examination process and support risk-focused examination work.

3/9/2021

The Federal Financial Institutions Examination Council (FFIEC) released updates to four sections of the Bank Secrecy Act/Anti-Money Laundering (BSA/AML) Examination Manual. The update includes:

The updates should not be interpreted as new instructions or as a new or increased focus on certain areas; instead, they offer further transparency into the examination process and support risk-focused examination work.

In addition to the BSA/AML compliance program, credit unions must comply with other program, reporting, and recordkeeping requirements.  Although the rules for credit unions are set forth in 31 CFR Part 1020, many of the specific requirements cross-reference to 31 CFR Part 1010.

Question of the Week

Q. Should the credit union know when an entity is subject to back-up withholding?

A. Only if the credit union is informed that the entity is subject to back-up withholding. There are two ways a credit union can be informed. First, the person opening the account on behalf of the entity could tell the credit union when they certify the entity’s TIN either using IRS Forms W-9 or W8-BEN.  Second, the credit union could receive a “B Notice” from the IRS instructing that back-up withholding begin.

Related Links

IRS Topic 307 Backup Withholding
IRS Tax Withholding

 Compliance Alerts

National Credit Union Administration

NCUA Releases Q4 2020 Credit Union System Performance Data: The NCUA released data on the financial performance of federally insured credit unions for the quarter ending Dec. 31, 2020.

Consumer financial Protection Bureau

Proposed Delay of Mandatory Compliance Date for General QM Final Rule: The CFPB is proposing to delay the mandatory compliance date of the General Qualified Mortgage final rule from July 1, 2021 to Oct. 1, 2022. This would also apply to the sunset date of the GSE Patch (unless the GSEs exit conservatorship prior to October 1, 2022).

Housing insecurity and the COVID-19 pandemic: The CFPB released a report which summarizes some of the relevant data and research on the impact of the pandemic on the rental and mortgage market.  11 million renter and homeowner households were significantly overdue on their regular housing payments as of December 2020.

Federal Reserve Board

FRB will Extend PPPLF by Three Months:The FRB announced that it will extend the Paycheck Protection Program Liquidity Facility by three months until June 30.

Office of Foreign Assets Control

OFAC has updated the SDN list as of March 5. The last update prior to this was Feb. 26.

Questions? Contact the Compliance Hotline: 1.800.546.4465; [email protected].