BSA compliance belongs to the Board, says RMA

NEW YORK -- It is likely that financial institutions will fail to comply with the US Bank Secrecy Act (BSA) unless their boards of directors are strategically involved in fighting financial crime. This view came from participants in a recent Risk Management Association (RMA) audio-conference convened to address the rising expectations of bank regulators’ examinations of anti-money laundering and anti-terrorist financing efforts.

The RMA said the board of each financial institution must be able to assure the adequacy of the BSA compliance programme, and that the programme and the audit process move along with new or expanded products of the bank.

David Baris, the executive director of the American Association of Bank Directors, said board directors in banks should overcome their instincts that BSA laws are just too technical and detailed for the board to be involved.

"Both the law and the regulation require a BSA