User Name: Kamal Gregory

Date and Time: Apr 02, 2015 2:47 p.m. EDT

Job Number: 18717884

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Kamal Gregory

1-2 Policies and Procedures P2.9

Policies and Procedures > SECTION 2 BSA/Anti-Money Laundering Policies and Procedures

¶2.9 Section 314(a) Policy and Procedures

The following policy/procedures should be modified to fit the specifics of your institution.

[1] POLICY STATEMENT

[Insert the name of your bank] intends to comply with all of the requirements of the USA PATRIOT Act (PL 107-56). In accordance with the requirements of section 314(a) of that act and codified by the Bank Secrecy Act (BSA) at 31 CFR 1010.520(a)(1), our bank has designated [insert the name and title of your contact person] to receive and respond to the Financial Crimes Enforcement Network (FinCEN) requests from law enforcement. This rule, among other things, established a mechanism for law enforcement authorities to communicate names of suspected terrorists and money launderers to financial institutions in order to promptly locate accounts and transactions involving the suspects. Law enforcement authorities include federal, state, local, and foreign law enforcement agencies.

Foreign, state, and local law enforcement agencies will be able to use the 314(a) program in a way analogous to how federal law enforcement agencies access the program. The requesting agency will have to certify that, in the case of a money laundering investigation, the matter is significant, and that it has been unable to locate the information sought through traditional methods of investigation and analysis before attempting to use the 314(a) program. A federal law enforcement official serving as an attach to the requesting jurisdiction will be notified of and will review all foreign requests prior to its submission to FinCEN.

[2] PROCEDURES

[a] Generally

Every two weeks, the BSA officer or designee will access the secure FinCEN web site and download the current suspect list. We will begin the search on the same or the next business day after we download the names. We will search the following records:

• Deposit account records (e.g., DDA, checking, savings, and certificates of deposit) to determine whether a named subject is or was an account holder.

• Fund transfer records maintained pursuant to 31 CFR 1020.410 to determine whether a named subject was an originator/transmittor of a fund transfer for which we are the originator’s/transmittor’s financial institution, or a beneficiary/recipient of a fund transfer for which we are the beneficiary’s/recipient’s financial institution.

• Records of the sale of monetary instruments (e.g., cashier’s checks, money orders, or traveler’s checks) maintained pursuant to 31 CFR 1010.415 to determine whether a named subject purchased a monetary instrument.

• Loan records to determine whether a named subject is or was a borrower.

• Trust department account records to determine whether a named subject matches the name in which an account is titled.

• Records of accounts to purchase, sell, lend, hold, or maintain custody of securities to determine whether a named subject is or was an account holder.

• Commodity futures, options, or other derivative account records to determine whether a named subject is or

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was an account holder.

• Safe deposit box records to determine whether a named subject maintains or maintained, or has or had authorized access to, a safe deposit box, but only if such safe deposit box records are searchable electronically. A manual search of safe deposit box records is not required.

Unless otherwise directed on FinCEN’s request, we will search our records for current accounts and those that were opened during the preceding 12 months. For noncustomer transactions, we will search our records for the preceding 6 months. We will respond by e-mail to FinCEN within 14 days if we have a “hit” by completing a subject information form. The form must include FinCEN’s tracking number from the request.

We are not required to automatically close an account on the list or file a Suspicious Activity Report (SAR). We will, however, conduct an independent investigation of the customer’s account. If we decide to close the account, we will notify law enforcement. We are also not required to file a SAR simply because the person is on a FinCEN request list. However, the board directs management to conduct a thorough investigation of the person/entity on the list and to file a SAR, if appropriate, according to those rules and guidelines.

[b] Confidentiality

31 CFR 1010.620 prohibits our bank from using information provided by FinCEN for any purpose other than responding to the information request or deciding whether to establish or maintain an account or to engage in a transaction. It also prohibits the disclosure of the fact that FinCEN has requested or obtained information under the rule, except to the extent necessary to comply with the request. Therefore, the board directs management to implement procedures to keep copies of the list, documenting that the search was conducted, regardless of whether we have any information to pass on to FinCEN in order to show examiners, auditors, and other interested persons our compliance with the rule. All copies of the list will be kept strictly confidential and copies will be kept in a [locked file cabinet or secured electronic file].

[c] Using Third Parties to Conduct Searches

The law allows our bank to contract with a third party to conduct 314(a) searches. However, if management chooses to do so, the board directs management to conduct third party due diligence according to our general policies regarding third party service providers. Also, the contract with the third party must include confidentiality and nondisclosure requirements consistent with section 314(a).

[d] Right to Financial Privacy Act

31 CFR 1010.620 clarifies the relationship between a financial institution’s obligations under the rule and the Right to Financial Privacy Act (RFPA). Furthermore, section 358 of the USA PATRIOT Act amended RFPA to expressly provide that its disclosure restrictions do not apply to requests from “a government authority authorized to conduct investigations of, or intelligence or counterintelligence analyses related to, international terrorism.”

[e] Changing Our Contact Person for FinCEN Requests

To update, change, add, or delete our point of contact information on FinCEN’s distribution list for receiving section 314(a) information requests, we will contact our primary federal regulator or self regulatory organization.

The board of directors approved and adopted this policy on ____________________.

Policies and Procedures

Copyright 2015, Reed Elsevier Properties SA, used under license by Matthew Bender & Company, Inc.

Kamal Gregory