PARC BSA/AML Independent Audit
Independent testing and formal audit services for fintechs, community banks, and foreign banking organizations.
What It Is
The BSA/AML independent testing requirement is one of the five pillars of a compliant program under the Bank Secrecy Act. It cannot be satisfied by internal staff who own the controls being tested. It requires a qualified, independent party to evaluate whether your program is designed correctly and operating as designed — and to say so in writing.
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PARC Solutions conducts independent BSA/AML audits for fintechs, community banks, and foreign banking organizations. Our audit methodology applies a two-pronged testing approach: Design Effectiveness Assessment, which evaluates whether controls are appropriately structured relative to regulatory requirements, and Operating Effectiveness Testing, which tests whether those controls are actually functioning through evidence review, sampling, and re-performance. The result is a formal audit report with an overall program rating, detailed findings, and Management Action Plans.
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This is not an advisory assessment. It is an independent audit conducted by practitioners who have run BSA/AML programs, led regulatory examinations, and produced audit opinions that held up under scrutiny. The deliverable is a signed audit report your institution can present to a regulator, a bank partner, or an investor.
Who This Serves
​Fintechs & Technology-Enabled Platforms
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MSBs, payments companies, and digital wallet providers
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Crypto exchanges and digital asset platforms requiring FinCEN compliance
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BNPL and embedded finance providers approaching bank partnerships
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Fintechs requiring BSA/AML audit documentation for institutional onboarding
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Growth-stage companies preparing for Series B/C or pre-IPO regulatory readiness
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Cross-border platforms with multi-jurisdictional BSA/AML exposure
​Community Banks, Credit Unions & FBOs
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Community banks and small banks requiring independent BSA testing
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Credit unions seeking qualified third-party BSA/AML audit services
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Foreign banking organizations (FBOs) with US operations
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Institutions with open regulatory findings requiring independent validation
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Banks supporting fintech or BaaS relationships requiring enhanced oversight
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Institutions approaching regulatory examination and seeking pre-exam readiness audit
What PARC Tests
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BSA/AML program governance and board oversight
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Customer Identification Program (CIP) and KYC controls
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Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD)
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Transaction monitoring system design and operating effectiveness
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Suspicious Activity Report (SAR) filing program
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Currency Transaction Report (CTR) filing and exemptions
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OFAC and sanctions screening coverage and disposition
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Beneficial ownership identification and verification
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AML training program effectiveness
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Prior audit and regulatory finding closure
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Fintech-specific controls: blockchain analytics, Travel Rule, crypto typologies
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Independent testing and model validation (where applicable)
What You Receive
Deliverables List
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Audit Planning Memo — objective, scope, risk assessment summary, and audit universe
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Risk & Control Matrix — risk-to-control mapping with testing approach and ownership
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Testing Workpapers — DEA and OET documentation, sampling methodology, evidence references
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Findings Log — issue identification, root cause, risk rating, and regulatory citation for each finding
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Formal Audit Report — executive summary, overall rating (Satisfactory / Needs Improvement / Unsatisfactory), and detailed findings
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Management Action Plans — owner-assigned, time-bound remediation steps for each finding
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Closure Memorandum (at follow-up phase) — independent verification of MAP completion and control sustainability
​How It Works
01
PLANNING
PARC conducts a risk-based planning exercise to understand your institution's business model, risk profile, and regulatory classification. We issue an Audit Planning Memo and Risk & Control Matrix before fieldwork begins.
02
FIELDWORK
Our audit team conducts Design Effectiveness Assessment and Operating Effectiveness Testing across all in-scope domains. Testing includes document review, sampling, evidence collection, and re-performance where applicable.
03
REPORTING
Findings are rated High, Medium, or Low with root cause identified and regulatory citation provided for each. We deliver a formal audit report with an overall program rating: Satisfactory, Needs Improvement, or Unsatisfactory.
04
FOLLOW-UP
For findings requiring remediation, PARC conducts closure verification testing at the conclusion of the Management Action Plan period. Closure requires re-performance of testing, not self-attestation by management.