---
kind: "section"
citation: "31 C.F.R. § 1020.210"
title: "31"
number: "1020.210"
heading: "Anti-money laundering program requirements for banks."
url: "https://uscodex.org/cfr/31/1020.210"
---

# §1020.210. Anti-money laundering program requirements for banks.

- (a) **Anti-money laundering program requirements for banks regulated by a Federal functional regulator, including banks, savings associations, and credit unions.** A bank regulated by a Federal functional regulator shall be deemed to satisfy the requirements of [31 U.S.C. 5318(h)(1)](/usc/31/5318.md?p=h-1) if it implements and maintains an anti-money laundering program that:
  - (1) Complies with the requirements of §§ [1010.610](/cfr/31/1010.610.md) and [1010.620](/cfr/31/1010.620.md) of this chapter;
  - (2) **Includes, at a minimum—**
    - (i) A system of internal controls to assure ongoing compliance;
    - (ii) Independent testing for compliance to be conducted by bank personnel or by an outside party;
    - (iii) Designation of an individual or individuals responsible for coordinating and monitoring day-to-day compliance;
    - (iv) Training for appropriate personnel; and
    - (v) Appropriate risk-based procedures for conducting ongoing customer due diligence, to include, but not be limited to:
      - (A) Understanding the nature and purpose of customer relationships for the purpose of developing a customer risk profile; and
      - (B) Conducting ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information. For purposes of this paragraph, customer information shall include information regarding the beneficial owners of legal entity customers (as defined in [§ 1010.230](/cfr/31/1010.230.md) of this chapter); and
  - (3) **Complies with the regulation of its Federal functional regulator governing such programs.**
- (b) **Anti-money laundering program requirements for banks lacking a Federal functional regulator including, but not limited to, private banks, non-federally insured credit unions, and certain trust companies.** A bank lacking a Federal functional regulator shall be deemed to satisfy the requirements of [31 U.S.C. 5318(h)(1)](/usc/31/5318.md?p=h-1) if the bank establishes and maintains a written anti-money laundering program that:
  - (1) Complies with the requirements of §§ [1010.610](/cfr/31/1010.610.md) and [1010.620](/cfr/31/1010.620.md) of this chapter; and
  - (2) **Includes, at a minimum—**
    - (i) A system of internal controls to assure ongoing compliance with the Bank Secrecy Act and the regulations set forth in [31 CFR Chapter X](/cfr/31/chX.md);
    - (ii) Independent testing for compliance to be conducted by bank personnel or by an outside party;
    - (iii) Designation of an individual or individuals responsible for coordinating and monitoring day-to-day compliance;
    - (iv) Training for appropriate personnel; and
    - (v) Appropriate risk-based procedures for conducting ongoing customer due diligence, to include, but not be limited to:
      - (A) Understanding the nature and purpose of customer relationships for the purpose of developing a customer risk profile; and
      - (B) Conducting ongoing monitoring to identify and report suspicious transactions and, on a risk basis, to maintain and update customer information. For purposes of this paragraph, customer information shall include information regarding the beneficial owners of legal entity customers (as defined in [§ 1010.230](/cfr/31/1010.230.md)); and
  - (3) Is approved by the board of directors or, if the bank does not have a board of directors, an equivalent governing body within the bank. The bank shall make a copy of its anti-money laundering program available to the Financial Crimes Enforcement Network or its designee upon request.

## Notes

### Amendments

[85 FR 57137, Sept. 15, 2020]

### Authority

Authority: 12 U.S.C. 1829b and 1951-1959; 31 U.S.C. 5311-5314 and 5316-5332; title III, sec. 314, Pub. L. 107-56, 115 Stat. 307; sec. 701, Pub. L. 114-74, 129 Stat. 599.

### Source

Source: 75 FR 65812, Oct. 26, 2010, unless otherwise noted.

### Amendments

[85 FR 57137, Sept. 15, 2020]