In our last post we discussed requirements on nonbank residential mortgage originators that became law with the Bank Secrecy Act. Today we will look at the requirements to establish an AML Program for this segment of lenders. A proper AML program must include, at a minimum:
- Development of internal policies, procedures, and controls.
- Designation of a compliance officer.
- Ongoing employee training program.
- Independent audit function to test for compliance.
The AML Program covers any business that, on behalf of one or more lenders, accepts a completed mortgage loan application, even if the business does not in any manner engage in negotiating the terms of a loan. Also covered are businesses that offer or negotiate specific loan terms on behalf of either a lender or borrower, regardless of whether they also accept a mortgage loan application.
If your lending business would fall into this category, it is extremely important that you establish an AML Program in order to be in compliance with the BSA and FinCEN. You can contact Cobia Compliance today to start the process of establishing this required program. We welcome the opportunity to partner with your business and bring our years of AML experience to your front door.