Bank Secrecy Act (BSA)

The Bank Secrecy Act (BSA) is a U.S. law designed to prevent money laundering and financial crimes by requiring financial institutions to maintain detailed records and report certain transactions. The BSA mandates practices such as filing Currency Transaction Reports (CTRs) for large cash transactions and Suspicious Activity Reports (SARs) for potential illegal activities. Compliance with the BSA helps combat money laundering, terrorism financing, and other financial crimes.

Organizations that fail to comply with the BSA may face severe penalties, making it essential for financial institutions to integrate robust compliance measures to adhere to these regulations.