Compliance Consulting

Bank Secrecy Act (BSA)

The BSA independent testing consists of reviewing a bank’s current BSA program to ensure compliance with all related laws, regulations and regulatory guidance. The independent testing follows the framework of the FFIEC BSA/AML Examination Manual, as periodically updated. The independent testing includes:
  • Bank specific risk assessment based on a bank’s unique activities
  • Transactional testing of BSA-related filings and recordkeeping
  • Review of BSA-related policy, internal controls and reporting

Deposit Review

Deposit compliance is often overlooked, however, it continues to have topics on the list of top exam violations. The MBA Compliance Consultants can validate the bank’s existing deposit procedures to ensure compliance with all applicable legal and regulatory requirements. Our deposit review includes:
  • Review of initial deposit account disclosures
  • Funds Availability Act, check holds
  • NOW account eligibility review and MMDA/Savings, excess transfers
  • Review of the Minnesota transaction account opening procedures
  • Error resolution under Regulation E and Minnesota law

Real Estate Loan Review

The real estate loan portfolio has some of the highest compliance risks for banks. The number and complexity of compliance requirements for real estate loans is virtually unparalleled. The Real Estate Loan Review will validate the compliance efforts of banks and provide recommendations for improved compliance.
The review includes:
  • Reviewing real estate lending policies
  • Identifying all real estate lending products
  • Reviewing loan files’ compliance with regulations, including B, C, V, Z, and AA
  • Reviewing loan files’ compliance with lending laws, including RESPA, state PMI law, federal PMI law, federal flood insurance requirements, federal high-cost home loan law, Fair Housing Act, and FCRA

Privacy Review

There are numerous privacy related laws, regulations, and guidance that impact the banking world. These requirements vary from simple disclosures to affirmative actions that banks must take to respond to government requests. The MBA Compliance Group can review all non-technical aspects of the bank’s customer privacy function. The MBA review includes:
  • Reviewing privacy policy and disclosure, and validating practices under Gramm-Leach-Bliley Act privacy requirements (Regulation P)
  • Reviewing policies and procedures for the Right to Financial Privacy Act
  • Reviewing policies and procedures for the Minnesota Right to Privacy Statute
  • Reviewing policies and procedures under the Telephone Consumer Protection Act (Do Not Call and junk faxes) and Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM)

HMDA Scrubs

The Home Mortgage Disclosure Act (HMDA) requires many banks to collect and report data on certain home loans using the Loan Application Register (LAR) by March 1st for the previous calendar year. The MBA Compliance Group can help you to ensure that your data is sound and avoid subsequent corrective filings. Our review includes:
  • Validating LAR data against loan/application files
  • Reviewing loan reports for missing HMDA loans

Advertising/ Website Review

Advertisements of all media have specific trigger terms that require additional disclosures. The MBA can review your advertisements before they are published to mitigate compliance risks. This review includes:
  • Reviewing print, broadcast scripts, and Internet advertisements prior to publication
  • Ongoing compliance checks throughout the year

Custom Policy Creation

Banks must maintain numerous compliance-related policies. The MBA Compliance Group can assist you in updating your current policies and ensuring that your existing policies match existing practices and procedures. The MBA custom policy writing engagement includes:
  • Reviewing current policy
  • Reviewing bank practices and procedures
  • Evaluating process improvements with the bank
  • Designing and delivering an updated policy

One Day Compliance Check Up

Each bank is different, and the examiners expect to see differences in each bank’s Compliance Management System (CMS). The MBA Compliance Group can develop a compliance risk profile that will allow banks to focus compliance efforts on the areas of greatest risk to them. This checkup includes:
  • Reviewing Board and Management oversight of compliance
  • Reviewing existing compliance program
  • Reviewing audit function
  • Assessing the impact of products/services and demographics
  • Comprehensive risk profile

Compliance Risk Assessments

A successful Compliance Management System (CMS) must know where its risks live. Examiners expect to see current risk assessments that reflect the bank’s policies and practices. The MBA Compliance Consultants can assist you in performing risk assessments on your bank’s compliance-related activities. Some of the risk assessment topics include:
  • Automated Clearing House
  • Bank Secrecy Act
  • Compliance Management System
  • Electronic Banking
  • Fair Lending
  • Foreclosure Practices
  • ID Theft Prevention Covered Accounts
  • New Products

ACH Compliance Review

The National Automated Clearing House Association (NACHA) requires each participating financial institution to complete an annual ACH audit by December 1st. Our Compliance Consultants can review your ACH function to validate that you are in compliance with ACH rules. The ACH compliance review includes:
  • Reviewing records and procedures in compliance with ACH Rules Appendix 8 
  • Conducting staff interviews to evaluate knowledge of ACH Rules


Some regulatory compliance requirements, e.g. Bank Secrecy Act (BSA), mandate training for bank employees, but training on any requirement can mitigate compliance risk. The MBA can tailor a training program to fit a bank’s compliance needs and target audience. Hot training topics include:
  • Check Holds
  • Error Resolution
  • Fair Lending
  • Flood insurance
  • HMDA

Portfolio Review

Loan loss and non-performance is one of the greatest risks facing banks today. The MBA Compliance Group can review your loan portfolio and assess your loan administration framework and the quality of your loan portfolio. The MBA portfolio review includes:
  • Reviewing current policies, underwriting, monitoring, and reporting standards and capabilities
  • Reviewing loan documentation to assign loan quality grades
  • Assessing adequacy of loan loss reserves
  • Comprehensive report detailing our loan grades, other findings, and recommendations

NonDeposit Investment Product Review

As federally insured entities, banks must adhere to specific requirements when they engage in the retail sale of NonDeposit Investment Product (NDIP). The MBA Compliance Consultants can review your NDIP program to ensure that you are meeting all legal and regulatory requirements. The NDIP review includes:

  • Reviewing broker relationship agreements
  • Assessing office placement and broker credentials
  • Reviewing advertisements, initial disclosures, and customer files
  • Testing account execution process