Updated: Sep 26, 2022
Every Money Service Business needs to perform an Independent Review, and most crypto banks ask for this document annually.
The Independent Review (sometimes called an Audit) is a requirement of the Bank Secrecy Act - the purpose is to test the Anti-Money Laundering program.
The Review should provide a fair and unbiased appraisal of each of the required elements of the company's anti-money laundering program, including its Bank Secrecy Act-related policies, procedures, internal controls, record-keeping, reporting functions, and training.
The review should include testing of internal controls and transactional systems and procedures to identify problems or weaknesses, and if necessary, provide recommendations to management with appropriate corrective actions.
The review needs to be documented, and made available to banks or IRS Title 31 examiners if necessary. government examiners and law enforcement authorities if necessary. Learn more here.
Clients of Hodder Law must provide the following documents to get started on the Review:
Copy of MSB registration and verification
List of locations and their address
Anti-Money Laundering (AML) program
State No Action Letters / Opinion Letters
Transaction reports for the review period
Record of crypto purchases during the review period
Record of Suspicious Activity Reports filed during the review period
Record of Currency Transaction Reports filed during the review period
Compliance Officer's resume
Any correspondence with the IRS or FInCEN during the past two years
Record of any compliance training
Record of document storage procedures
Description of software
Flow of Funds diagram
Board meeting records
Certificate of Good Standing
Please let us know if we can help with your Independent Review or anything else related to crypto law!
Hodder Law Firm, P.A.