BSA (Bank Secrecy Act)

March 21, 2019

The Bank Secrecy Act of 1970 requires banks and other financial operations to work alongside law enforcement bodies to combat terrorism, fraud, money laundering, and other financial crimes. The act prevents banks and bankers from getting involved in illegal financial activities.

Under the Bank Secrecy Act, banks are required to adhere to a certain set of laws. First, they must report any transaction over $10,000 cash, either from one customer in one transaction, or from two or more related transactions in a 24-hour period. Banks also must report any suspected instances of fraud, money laundering et. al.

To determine whether a transaction is suspicious, certain parameters are set by the BSA. A financial activity is considered suspicious under the BSA if it involves more than $5,000 that looks like it may have been either gained from illicit acts or used to hide such acts.

If an agent of the bank is named in the report of suspicious activity, no other member of the bank or institution may tell that individual, so as not to warn them of the suspicion.

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