Lenders play a crucial role under the Bank Secrecy Act. They must be alert to attempts at money laundering, identify theft, loan fraud, and more – some of which require filing a SAR. Take this opportunity to learn more about the BSA implications for lenders and their responsibilities.
- Understand the potential for money laundering in the lending area
- Use the tools provided to detect suspicious activity
- Develop risk profiles for consumer and business loan applicants
- Explain the beneficial ownership requirements to legal entity customers
- Ask appropriate due diligence questions during the loan application process
During exams, BSA examiners have been digging deeper and have begun to ask more
questions about the lending function such as: Could an examiner find loan fraud that has gone
undetected by your due diligence process? Is there a system for identifying false
statements and attempts at identity theft on loan applications? Do lenders know that
these activities may require filing a suspicious activity report? Is the process for
documenting beneficial ownership effective?