Which description best describes the purpose of BSA risk assessments?

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Multiple Choice

Which description best describes the purpose of BSA risk assessments?

BSA risk assessments focus on identifying and evaluating the risks of money laundering and terrorist financing within the bank and how well the controls mitigate those risks. The goal is to determine risks related to BSA compliance so the institution can design and prioritize its AML program, including customer due diligence, transaction monitoring, and suspicious activity reporting, based on the level of risk. This isn’t about auditing employee performance, market risk for investments, or calculating tax liabilities, which fall outside the scope of BSA compliance.

BSA risk assessments focus on identifying and evaluating the risks of money laundering and terrorist financing within the bank and how well the controls mitigate those risks. The goal is to determine risks related to BSA compliance so the institution can design and prioritize its AML program, including customer due diligence, transaction monitoring, and suspicious activity reporting, based on the level of risk. This isn’t about auditing employee performance, market risk for investments, or calculating tax liabilities, which fall outside the scope of BSA compliance.

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