Show the feds you're taking your 314(a) responsibilities seriously

Even if it's rare for you to find a match on one of FinCEN's information requests, you still must have a system in place and apply it. Follow these quick steps to keep the regulators satisfied.

Step 1: Keep Up With Changes

FinCEN has a new Web-based distribution system in the works where you'll be responsible for downloading the FinCEN lists, reports John Robinson, III, VP of professional services with Bankers Training & Consulting Company in St. Louis. Head to www.fdic.gov/news/news/financial/2005/fil305.html for more information.

Step 2: Maximize Your Search

If you're the compliance officer, but someone else handles FinCEN requests, you should still perform a quick propriety review, advises Rodney Biehl, VP of audit and compliance with Pulaski Bank in St. Louis. Be brief but thorough enough to keep on top of what and who FinCEN is looking for; then compare this to your knowledge of your customer database, says Biehl.

Warning: Don't create a watch list out of these requests. You may never know if those on the list are ever prosecuted, so don't use a person's presence on the list as the only reason for declining to open or maintain an account. And don't file a SAR just because you performed a transaction for someone whose name once appeared on the list.

Step 3: Wrap Up the Review

If you do find a match, stop your search on that individual, mark an "X" next to his name and send that -- along with your point person's information -- to FinCEN. If you don't find a match, you don't have to take any further action, right? Officially, no. But your best bet is to print a hard copy of the request and place it along with any supporting material from your search into a confidential file, says Robinson.