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Bank Secrecy Act (BSA)

The Bank Secrecy Act (BSA) is a federal law in the United States that requires financial institutions to report certain transactions to the government to help detect and prevent money laundering and other illegal activities. It was introduced in 1970 and is applicable to all financial institutions operating in the US.

The act applies to a wide range of entities including banks, credit unions, securities broker-dealers, mutual funds, and money services businesses. It requires these entities to maintain records of certain transactions, report suspicious activity, and implement internal controls to detect and prevent money laundering.

In short, the Bank Secrecy Act is a law that requires financial institutions to help the government detect and prevent illegal activities by reporting certain transactions. Following this act is mandatory for all financial institutions operating in the US.

The Bank Secrecy Act (BSA) was authored by the US Congress. It is a federal law enacted by the legislative branch of the government. The BSA was enacted as part of the Currency and Foreign Transactions Reporting Act in 1970. The law is periodically updated and amended by Congress to keep pace with changes in technology and financial practices.

You can learn more about the Bank Secrecy Act (BSA) by visiting the following resources:

  1. FinCEN (Financial Crimes Enforcement Network) website: This is the US government agency responsible for implementing and enforcing the BSA. You can find detailed information about the act, its requirements, and guidance on their website (www.fincen.gov).
  2. Federal Reserve Bank’s website: The Federal Reserve Bank also provides information about the BSA and its requirements. Visit their website (www.federalreserve.gov) for more information.
  3. Legal resources: If you want to learn about the legal aspects of the BSA, you can search for articles, case laws, and other legal resources related to the act.
  4. Industry associations: Financial industry associations such as the American Bankers Association (www.aba.com) and the Credit Union National Association (www.cuna.org) also provide information and resources related to the BSA.

It is important to note that the BSA is a complex and constantly evolving law, so it is recommended to regularly check for updates and changes.

This page was last updated on January 30, 2023.