At our Annual Meeting of the Membership in February, a motion was approved that directed the management of the credit union to provide more transparency into the regulations that we're required to comply with, and the steps we take to do so. In this article, we're going to focus on a federal requirement that helps minimize our risk of losing money to or inadvertently supporting money launderers, drug traffickers, or terrorists.
What is the Bank Secrecy Act (BSA)?
The Bank Secrecy Act (BSA) was enacted in 1970 with the intent to assist the United States government in detecting and preventing money laundering. You may be familiar with the USA Patriot Act, which was signed into law in 2001 following the terrorist attacks on September 11th. Title III of the USA Patriot Act specifically addresses anti-money laundering cooperation by financial institutions as a way to prevent terrorism.
How Does SF Fire Credit Union Comply with the BSA?
SF Fire Credit Union's Board of Directors has approved a system of ongoing controls to ensure that we meet the reporting and record-keeping requirements of the Bank Secrecy Act regulation. There are thresholds for transaction dollar amounts and activity types that, once reached, must be reported. In addition to following the written guidelines, we conduct independent testing for compliance that is conducted by both our internal auditors as well as outside parties. Our employees, Board of Directors, and Supervisory Committee are required to go through BSA compliance training annually.
If you have questions about how we comply with federal regulations, or would like to learn more about a specific regulation or practice that we have not addressed here, please contact our Compliance Officer Chris Van Sickle at firstname.lastname@example.org, or visit our website at www.sffirecu.org and Ask Darren.