Compliance and Audit Services for Banks
Bankers Service Corporation stays current on the latest changes in rules and regulations to help your bank remain in compliance with professional consultation, audits, and reviews for all critical areas of your operations, including:
Our internal loan review program incorporates a comprehensive analysis of credit quality and loan administration procedures. We typically conduct reviews annually, semi-annually, or up to four times during a twelve-month period or tailored to individual needs. At the conclusion of each review, a comprehensive report will be prepared and presented to the Directors and management, as requested.
Compliance and Fair Lending Audits and Consulting
Community banks must have a sound Compliance Management System with adequate policies and procedures. Our Compliance Audit Services will help assist in this process. Compliance audits are performed for loans, deposits, Privacy, CRA and other consumer protection areas. The reviews are conducted in accordance with regulatory guidelines and include all aspects of loan and deposit compliance. We also provide fair lending reviews.
Bank Secrecy Act and Anti- Money-Laundering Audits
According to BSA regulations, an independent party must perform an independent test of a bank’s Bank Secrecy Act compliance program at least annually.
Procedures performed in an independent BSA Review primarily consist of the following:
- Review and determine the adequacy of the Board approved BSA/Anti-Money Laundering Policies and Customer Information Program;
- Sample transactions to determine the integrity and accuracy of the systems for reporting large currency transactions;
- Review the accuracy of tellers work and the completion of Forms 104;
- Determine the integrity and accuracy of the institution’s recordkeeping activities;
- Sample new accounts (DDA, Savings, CD’s, Loans, Trust) for CIP requirements;
- Sample wire transfers to determine the accuracy of forms and collection of required information;
- Review the accuracy and reasonableness of exempted customers;
- Determine the appropriateness of monitoring procedures for suspicious activity;
- Sample ‘high risk’ customers to determine possible suspicious activity;
- Review the appropriateness of recordkeeping procedures for the sales of monetary instruments in cash between $3,000 and $10,000;
- Determine if procedures are in place to provide for compliance with OFAC requirements and 314(a) requirements;
- Review the adequacy of the institution’s ongoing training program;
- Review the Bank’s internal risk assessment of compliance with BSA requirements and analysis of high risk customers.
Each review’s procedures and findings are submitted to the Board of Directors in a written report.
ACH Compliance Audits
This audit is intended to assist the bank in complying with the annual audit requirement of the National Automated Clearing House Association (NACHA) for banks providing receiving and origination functions for ACH items. NACHA requires that this audit be completed prior to December 31 each year.
Internal Audits and Controls
The internal audit process utilizes risk assessments in order to identify those functions and areas of bank operations that pose the most significant risks to strong and efficient bank performance. From that risk assessment, a program specific to your bank is developed including obtaining an understanding of internal controls in place within the institution over key business processes and how the organization’s personnel function under existing controls and manage their assigned responsibilities. The adequacy of existing controls is evaluated through performance of internal audit procedures in the various operational areas of the institution.
Asset and Liability Management(ALCO) Audits, Including Backtesting
We will review the Bank’s policies and procedures relating to interest rate risk, liquidity, and funds management. We will review the Bank’s third party model, if utilized, as well as “back-test” the assumptions used in the model.
Examination and Investigation Consultation / Problem Banks
For institutions that have been placed under regulatory enforcement action, our staff will work with bank personnel in order to assist in developing needed policies, procedures, and training programs that will enable them to correct the problem areas noted by the regulators.
Strategic Planning Consultation
We can assist your institution with a variety of strategic planning needs.