Proper Understanding Of Bank Secrecy Act Audits -


Proper Understanding Of Bank Secrecy Act Audits

By Linda Hayes

Following the passing of the Bank Secrecy Act or BSA also referred to as the Anti-Money Laundering or AML law, financial institutions are currently expected to cooperate with government agencies in the auditing process. This is aimed at preventing and spotting money laundering. However, for many banks, this can be particularly taxing because it is hard to maintain the vital expertise in the highly specialized sections of AML compliance. Thus, there are firms that aid you in conducting your bank secrecy act audits.

These organizations are focused on carrying out as many independent BSA audits yearly. They have competent teams that offer a unique combination of expert gifts among other crucial rewards. First and foremost, they have a responsive style whereby, they are cognizant of the fact that every client is different. Consequently, they customize their auditing programs encompassing scoping procedures, instruments, and work papers. Again, they provide complete outsource services or can co-source with the auditing team of the financial organization.

Some auditing institutions have approaches that offer consistency and they comply with what the regulators require. They also work in accordance to the rules set by government institutions. Apart from providing clients with excellent services they have devices that can test all the concepts that are in line with AML, BSA and the USA PATRIOT Act. There is compliance with all regulations laid down by the state.

Customers seeking services from auditors working in the firms want consistency and the companies work around the clock to give clients consistent services. If a client is not contented with the services the firms respond to all the questions in good time. All along the auditing, they ensure there is a lot of transparency.

Hence, the BSA or AML compliance experts perform the implementation of detailed tests and ready the findings and suggestions. Again, there is a team involved in overseeing the engagement process including the delivery expectations, working as the customer liaison, as well as providing quality assurance on all products. Moreover, the technology experts are tasked with the duty of performing system validation tests, and likewise prepare recommendations and findings.

Likewise, other companies provide complete assessment that focuses on risk-based auditing and they similarly review processes, documents and policies. After the conclusion of this testing, they give out a non-subjective report that notes any places of weakness or violations. Additionally, they provide remedial action plans to assist in bettering and strengthening your AML or BSA programs. Again, they give advice concerning the ways to make sure your BSA compliance programs are more efficient and effective for the long-standing operations of your organization.

It is imperative to note that the individual performing the independent audit ought not to be involved in any section of the BSA or AML compliance program. This is inclusive both internal or external auditors. This encompasses the development of policies and processes as well as carry out the training.

Generally, rather than financial institutions doing their own independent testing of AML or BSA compliance, they can leave this to professionals. This lessens the burden on the banks because the teams tasked with this work are not only knowledgeable but also independent. This, therefore, ensures you gain a high credibility with the regulators.

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1 comment:

  1. Bank Secrecy Law should be abolished as it is very important in discovering corrupt practices of government officials. Filipino attorneys as well as lawmakers should work hand in hand to help our country in alleviating corruption.