Anti-Money Laundering (AML) and the Bank Secrecy Act (BSA) are still relevant in ensuring that enforcement of potentially illegal money laundering via terrorists or other criminal entities.
Banks and Mortgage Companies are required, but more so they should want, to have an AML and BSA process and plan in place. Senior Management should encourage their staff to understand the implications and the safeguards that should be in place to ensure the validity of the funds in place for residential mortgage transactions. This entails the review and understanding of down-payments and/or gift funds for home purchases, as well as recent pay-offs of other debts or assets. The tracking and confirmation of the funds, from whom and how they were gained is vital to understanding the construction of the loan itself and how, why, and who the borrower may have received funds for a down-payment, assets in place and/or the pay-off of other debts or assets in order to assist the borrower(s) better qualify for this particular loan.
The onus is on the company and senior management to best comprehend the importance of this function and ensure the proper process and safeguards are in place to protect the company. Not reporting a SAR (Suspicious Act Report) and being responsible for a possible AML breach can dramatically affect that loan but also the ability for the CFPB to look closer into the company’s overall loan process and approval and act accordingly.
It does not take a lot to properly set-up the proper Policy and Procedures, reporting and overall company attitude to this subject.
Cammarata Associates continues to offer the review, preparing and oversight of this important area.
We can offer the following:
- Establish Policies & Procedures, internal controls and reports
- Assign a Compliance Officer that is responsible for this vital need
- Create and establish an on-going employee training program
- Establish, prepare and monitor an independent Audit function