Bank Secrecy Act (BSA)
U.S. law requiring financial institutions to file reports that help detect and prevent money laundering and financial crimes.
What is Bank Secrecy Act?
The Bank Secrecy Act (BSA) of 1970, also known as the Financial Recordkeeping and Reporting of Currency and Foreign Transactions Act, requires U.S. financial institutions to assist government agencies in detecting and preventing money laundering, tax evasion, and other financial crimes. Key requirements include filing Currency Transaction Reports (CTRs) for cash transactions over $10,000, Suspicious Activity Reports (SARs) when institutions detect potential money laundering or fraud, and maintaining records of certain financial transactions. BSA compliance is administered by the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury.
Example
A bank teller notices a customer making multiple cash deposits of $9,500 on consecutive days—a pattern called 'structuring' designed to avoid the $10,000 CTR threshold. Because structuring is illegal and a BSA violation, the bank is required to file a Suspicious Activity Report with FinCEN within 30 days of detecting the pattern.