Bank Secrecy Act Examination Program Overview

The FDIC has prescribed in its regulations, Section 326, Subpart B - Procedures for Monitoring Bank Secrecy Act Compliance (12 CFR § 326.8) a requirement that depository institutions establish and maintain procedures reasonably designed to assure and monitor the compliance with the BSA and the implementing regulations 31 CFR Part 103. The FDIC monitors compliance with the BSA-related regulations by conducting on-site examinations of every FDIC-supervised depository institution.

BSA compliance is a safety and soundness issue due to the reputational, regulatory, legal, and financial risk exposure to a bank involved in money laundering schemes or willfully violating the BSA statute. Civil money penalties and regulatory enforcement actions may be imposed for noncompliance with money laundering regulations which can endanger the bank's capital and earnings. Furthermore, banks may be criminally prosecuted for willful violations of money laundering statutes that could ultimately lead to termination of FDIC insurance.