AUDIT OF RTC MORTGAGE TRUST 1995-SN1

March 30, 2001Audit Report No. 01-013Examination Assessment of Bank SecrecyAct ComplianceFederal Deposit Insurance Corporation Office of Audits Washington, D.C. 20434 Office of Inspector GeneralDATE: March 30, 2001TO: Michael J. Zamorski, Acting DirectorDivision of SupervisionFROM: Sharon M. SmithAssistant Inspector GeneralSUBJECT: Examination Assessment of Bank Secrecy Act Compliance(Audit Report No. 01-013)This report presents the results of the Office of Inspector General’s (OIG) audit of the Divisionof Supervision’s (DOS) assessment of financial institutions’ compliance with the Bank SecrecyAct (BSA). Generally, we found that DOS did not adequately document its BSA examinationwork. Therefore, we could not always determine the extent to which DOS examiners reviewedregulated institutions’ compliance with BSA. Additionally, we found that DOS can improve theplanning process for the BSA examinations.BACKGROUNDIn 1970 the United States Congress passed the Bank Secrecy Act to aid law enforcementagencies in the investigation of suspected criminal activity ranging from income tax evasion tomoney laundering by organized crime. More recently, law enforcement agencies have foundBSA reports and records maintained by financial institutions extremely valuable in investigatingdrug trafficking.The BSA regulations require all financial institutions ...