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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
Ofce of the Comptroller of the Currency
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
Ofce of the Comptroller of the Currency
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
Ofce of the Comptroller of the Currency
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
Section 312 Special Due Dilig(contd)
Regulations required within 180 d
enactment
Effective 270 days after enactmen
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USA Patriot Ac
Section 312 Special Due Dilig(contd)
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
Section 312 Special Due Dilig(contd)
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
Section 326 Customer Identifi(contd)
NPR issued 7/23/02
Definitions: Account: Ongoing relationships, e.g
transaction, or credit accounts of perso
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USA Patriot Ac
Section 326 Customer Identifi(contd)
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
USA Patriot Act and I
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USA Patriot Act and I
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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USA Patriot Act and I
on Sound AML P
Results of Pollin
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USA Patriot Act and I
on Sound AML P
Question and Ans
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USA Patriot Act and I
on Sound AML P
Web sites:
To Order Telephone Seminar Publications
http://www.occ.treas.gov/http://www.occ.treas.gov/8/6/2019 AML TS - Final Handouts
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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 $
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