Anti-Money Laundering Regulation - Bank Secrecy Act
The Bank Secrecy Act was the first major piece of legislation aimed at combating money laundering in the United States. It has been been amended multiple times by acts such as the USA PATRIOT Act.
The Bank Secrecy Act was passed in 1970 under the Nixon administration. After congressional hearings in 1968 on the use of foreign bank accounts in aided organized crime in the United States, . It was the first attempt by US regulators to fight money laundering.
Summary of Requirements
The Bank Secrecy Act requires financial institutions to do the following to ensure compliance:
- A system to insure ongoing compliance
- Provide for independent testing of compliance
- Designate an officer in charge of compliance
- Provide appropriate training for personnel<ref>BSA and related regulations. OCC. Retrieved on June 2nd, 2015.</ref>
Suspicious Activity Reports
The Banks Secrecy Act requires that financial institutions file a Suspicious Activity Report (SAR) when a financial institution suspects violations of federal law, money laundering, or a violation of the Bank Secrecy Act.
Other Reporting Requirements
- Currency Transaction Report
- Required for any transaction exceeding $10,000 in value
- Report of International Transportation of Currency or Monetary Instruments
- Required if transporting more than $10000 of currency or financial instruments physically out of the United States <ref>International Transportation of Currency or Monetary Instruments Reporting—Overview. Federal Financial Institutions Examinations Council. Retrieved on June 2nd, 2015.</ref>
- Report of Foreign Bank and Financial Accounts (FBAR)
- Requires all persons subject to US law to be file an FBAR if they have accounts exceeding $10000 in overseas accounts<ref>Foreign Bank and Financial Accounts Reporting—Overview. Federal Financial Institution Examination Council. Retrieved on June 4, 2015.</ref>
Bank Secrecy Act as it Appears in The Code of the United States