Independent Audit Manual: How to Conduct a Bank Secrecy Act/ Anti-Money Laundering Audit - Paperback

by Patrick Kabamba (Author)

An Independent audit of the bank's Bank Secrecy Act/Anti-Money Laundering (BSA/AML) policies, procedures and processes is one statutory requirement of the Bank Secrecy Act (BSA). In addition, it is a regulatory requirement of bank regulators because it is one of the sound risk management practices. The independent audit helps the bank's board of directors and management to evaluate the effectiveness of the bank's BSA/AML policies and implement stronger controls as needed. In addition, one of the most important ways to ensure that bank's anti-money laundering policy is in compliance with BSA/AML regulations is to subject it to independent audits. Regular internal audits are always recommended, but external auditors have the distance and perspective needed to give the bank further confidence in its BSA/AML policies, procedures and processes.The independent audit focuses on how the bank's policies, procedures, and processes are organized to support BSA/AML compliance. Given the complexity and importance of the issue, it is critical for the bank to hire a consultant who is an expert in the BSA/AML policy intent and the regulatory apparatus that goes with it. Best practice is to conduct the external audit every 12 to 18 months.