Bank Secrecy / USA Patriot Act
Eastpointe Community Credit Union will comply with the Bank Secrecy Act (BSA) by filing reports with the federal government for currency transactions in excess of $10,000; by filing Suspicious Activity Reports (SAR); by collecting required information and verifying member identity; by filing other required reports when appropriate; and maintaining records associated with these reports as required by law.
Eastpointe Community Credit Union will designate a “BSA Compliance Officer” who will be responsible for ensuring that:
A. reports requires by the BSA are filed within a timely manner
B. account opening procedures, including CIP procedures, conform to the provisions of the BSA:
C. appropriate staff training is provided, as necessary
D. annual BSA auditing is performed; and
E. adequate record retention procedures are in place.
A. Currency Transaction Reports
Whenever a non-exempt member deposits or withdraws currency in excess of $10,000, the credit union shall submit an IRS Form 4789 (CTR) – to the IRS by the 15th day following the date of the transaction.
The credit union shall have adequate procedures in place to ensure that:
1. multiple same-day transactions by or on behalf of a member are treated as a single transaction for the purposes of the BSA;
2. the name and address of any member that presents a transaction that is reportable on a CTR is verified and recorded
The credit union will not accept CTR exemption requests. A CTR will be filed by the credit union whenever required by law, regardless of whether those involved with the transaction would qualify for an exemption.
B. Suspicious Activity Reports
Eastpointe Community Credit Union shall have procedures in place to ensure that suspicious financial transactions by any member, whether exempt or not, are reported on a Suspicious Activity Report (SAR) to FinCEN, when appropriate.
When to File a SAR
Within 30 days of becoming aware of facts that form the basis for filing a SAR, the credit union will complete and submit a SAR regarding any transaction involving or aggregating in excess of $5,000 when the credit union knows, suspects (or has reason to suspect) that the transaction:
1. involves funds from illegal activities or is intended to hide funds from illegal activities in order to violate or evade and federal law or regulation or to avoid any CTR requirement;
2. evades any regulation set forth under the BSA;
3. has no business or apparent lawful purpose or is not the sort in which the member would normally be expected to engage, and the credit union knows of no reasonable explanation for the transaction after examining the available facts.
Within 30 days of becoming aware of facts that form the basis for filing a SAR, the credit union will complete and submit a SAR regarding:
1. any known or suspected criminal violation that was committed against the credit union – regardless of the amount of money involved – if the credit union believes the violation was committed by an “insider;”
2. any known or suspected criminal violation has been committed against the credit union by a non-insider, involving $5,000 or more, if the credit union can identify the suspect;
3. any known or suspected criminal violation has been committed against the credit union involving $25,000 or more, regardless of whether any suspects have been identified.
Within 24 hours of filing any CTR or SAR, the credit union shall send a copy of the SAR or CTR to the Michigan Department of State Police, Criminal Intelligence Unit, 2911 Eyde Parkway, Suite 130, East Lansing, Michigan 48823.
ACCOUNT OPENING & IDENTITY VERIFICATION PROCEDURES
(Member Identification Program)
Member identification Program (CIP) procedures are designed to enable the credit union to form a reasonable belief of an applicant’s identity; provide applicants with notice; compare applicant’s names with certain lists; and insure the retention of documents and information for required periods.
INFORMATION REQUIRED FOR ACCOUNT OPENING
Before opening a new account for a person who is not currently a member, the credit union will obtain the following information
1. Name (legal name)
2. Date of birth (for individuals)
4. An identification number
a. A taxpayer identification number
b. Passport number and country of issuance
c. Alien identification card
5. Number and country of issuance of any government issued document evidencing nationality or residence and bearing a photograph.
Using a risk based approach, within a reasonable time after a person provides information required by the credit union, the applicant’s identity information will be verified using documentary or non-documentary means. An applicant will not have full use of services provided to credit union members prior to identity verification.
Using Documentary Evidence to Verify Identity
The credit union will accept un-expired government-issued identification evidencing nationality or residence and bearing a photograph of the applicant, or similar safeguard.
Proof of Identity Verification
The credit union shall retain a description of:
1. Any document relied upon to verify identity, noting the type of document, any identification number on the document, the place of issuance, and, if any, the date of issuance, and the expiration date.
2. The methods and results of any measures undertaken to verify the identity of the member using non-documentary methods and any additional verification measures
NOTICE TO MEMBERS
The BSA Compliance Officer shall ensure that members are provided with notice that the credit union is requesting information to verify their identity.
The BSA Compliance Officer shall ensure that adequate procedures are in place to assure that the names of any applicant are checked for OFAC compliance. The credit union will also compare applicant names with additional lists of known or suspected terrorists designated by the U.S. Treasury Department. After receiving a request from an agency of the federal government – and following the procedures set forth in the Right to Financial Privacy Act – the credit union shall search for the names of terrorists and terrorist organizations in the credit union records.
The credit union shall assure that all appropriate staff receives an appropriate amount of staff training. The BSA Compliance Officer shall ensure that the appropriate staff receive their training and that the records documenting the training are kept. In addition to ongoing training, where appropriate, new staff shall be provided with BSA training.
Internal auditors shall periodically test whether the credit union is following its BSA compliance program by auditing large currency transactions; internal procedures designed to ensure BSA compliance; account-opening procedures; and BSA record retention. Copies of the audit will be signed, dated, and sent to management and the Supervisory Committee.
A. The credit union shall maintain the following records for at least five years after the record is made:
1. Required Reports
Copies of all reports filed pursuant to the BSA, and any supporting documentation, for a period of at least 5 years from the date the report is filed.
2. Transferring currency, instruments or credit outside USA
Details regarding each advice, request or instruction regarding the transfer of over$10,000 in currency, monetary instruments or credit to or from anywhere outside the USA.
3. Monetary Instruments $3,000 and $10,000 – to Members
For monetary instruments purchased by members with currency, with a value between $3,000 and $10,000, the credit union must record the members name; date; type of instrument; serial # of instrument and the dollar amount of the transaction.
4. Wire Transfers
For all wire transfers of $3,000 or more and for all wire transfers covered by Regulation E or the Electronic Funds Transfer Act. For all wire transfers made via ACH, an ATM or point-of-sale system, the following information shall be retained.
Credit union originates wire
When the credit union originates a wire transfer, the credit union shall retain the name; address; amount; date; beneficiary financial institution ID; beneficiary’s name; address; and account number.
Credit union receives wire
When the credit union receives a wire, it shall retain a copy of the payment order; and, if the originator is not an established member, the credit union must verify the originator’s name an d address; keep a record of the means used to verify the name and address, along with the person’s social security #, alien ID or EIN
5. Staff Training
The credit union shall document BSA training provided to staff for a period of 5 years.
6. Documents associated with identity verification
The credit union shall maintain the following information for five years after the record is made;
A description of any document that was relied on to verify identity;
A description of the methods and the results of any measures undertaken to verify the identity of the member using non-documentary methods and any additional verification measures for non-individual members; and
A description of the resolution of any substantive discrepancy discovered when verifying the identifying information obtained.
B. The credit union shall maintain the mandatory identification information obtained from an applicant (name, address, date of birth, identification #) for at least five years after the account is closed.
Eastpointe Community Credit Union Office Procedures
Twice a month the Credit Union receives the OFAC Tracker Report from Fiserve Galaxy. The report is compared to the report issued by the OFFICE OF FOREIGN ASSETS CONTROL (SPECIALLY DESIGNATED NATIONALS AND BLOCKED PERSONS.) Both lists are then compared to our membership.
Opening Account Safety Procedures
- Verify the person opening an account is eligible for membership.
- Membership cards are double-checked to ensure the card is properly signed and filled out correctly.
- Copies of driver’s license and Social Security cards are made and filed.
- Driver’s license is checked under a black light to ensure their validity.
- Approval from Tele Check is obtained.
- New accounts are recorded and filed for verification.