Is the credit union's board of directors ultimately responsible for BSA compliance?

The board of directors of a credit union has a critical role in ensuring compliance with the Bank Secrecy Act (BSA). Their ultimate responsibility encompasses establishing and maintaining an effective Anti-Money Laundering (AML) program, which includes adherence to BSA regulations. This responsibility is significant because it involves developing policies, approving a designated BSA compliance officer, and ensuring that adequate resources are allocated to meet compliance standards.

By acknowledging this responsibility, the board demonstrates its commitment to risk management and regulatory compliance. This ensures that the credit union can effectively detect and prevent money laundering activities and other financial crimes, protecting both the institution and its members. Therefore, stating that the board of directors is ultimately responsible for BSA compliance is correct, as it aligns with the comprehensive oversight role they are required to fulfill under regulatory guidelines.