Similar to identity theft, this type of fraud happens when an unauthorized individual gain access through online banking applications, capturing the account information to create and write bad checks.
An adverse action notice is a document sent to a loan applicant stating a bank’s rationale for denying a loan. It may also contain a counteroffer, such as a lesser amount or a request for an approved co-borrower.
The term “aging exceptions” refers to a group of critical exceptions that have not been resolved within a reasonable amount of time.
Altered check fraud occurs when a fraudster changes the amounts and Payee from a stolen check.
Audit and exam prep is a process that financial institutions go through in order to adequately prepare for upcoming audits and exams.
An authorized signer form is a document that allows an account holder to grant a range of clearance levels to individuals to perform certain functions within a bank account.

A BSA Compliance Officer coordinates and monitors adherence to Bank Secrecy Act regulatory requirements, which are focused on detecting and halting money laundering. This senior-level position spends much of his or her time analyzing data and ensuring the successful implementation of various policies and procedures. In smaller financial institutions, these functions may fall under the Bank Compliance Officer’s purview, but larger financial institutions often create a specific BSA compliance position.

Pinpointing Anomalies

The BSA Compliance Officer’s responsibilities center around AML (anti-money laundering) efforts. BSA Compliance Officers develop and implement systems to proactively detect suspicious activity, such as:

  • Frequent deposits and/or withdrawals of large amounts, often from one branch to another
  • Shell companies that have been established specifically for money laundering purposes
  • Purchasing large amounts of cashier’s checks
  • Other BSA Compliance Officer Duties

In addition to detecting suspicious activity patterns, BSA Compliance Officers implement and manage the financial institution’s AML programs. This may entail, among other items:

  • Creating internal policies, procedures, and controls to flag potential money laundering schemes
  • Staying up to date on new BSA requirements
  • Training staff as necessary
  • Performing independent testing to measure the bank or credit union’s effectiveness in identifying money laundering attempts
  • Ensuring that identified issues are sufficiently addressed

Leveraging Technology

Modern banks and credit unions are turning to electronic document imaging software, such as AccuDoc, to assist with BSA compliance in a variety of ways. Some examples include:

  • Storing and retrieving Currency Transaction Reports (CTRs), Suspicious Activity Reports (SARs), and internal/external audit reports related to due diligence and independent testing
  • Enabling convenient access to BSA policies and procedures
  • Ensuring tight security at the document level for sensitive information
  • Reducing risk of the loss of (or unauthorized access to) sensitive compliance information

BSA Compliance Officer Resources

Looking for more information about banking compliance? Be sure to check out our extensive resource library with free spreadsheets, whitepapers, and eBooks.

Browse our banking definitions page for more terminology.

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