Primary Risks

Violations of the BSA can expose credit unions to a variety of risks, specifically:

• Compliance Risk—the current and prospective risk to earnings or net worth arising from non-compliance with the BSA and any resulting civil money and criminal penalties

• Transaction Risk—the current and prospective risk to earnings or net worth arising from inadequate or failed internal processes/systems, human error, fraud, or external events such as lawsuits or penalties resulting from noncompliance with the BSA

• Strategic Risk—the current and prospective risk to earnings or net worth arising from operating policies and programs that fail to support strategic initiatives, and any negative publicity relating to BSA violations

Last updated on August 19, 2024