Who enforces the BSA?

The Financial Crimes Enforcement Network (FinCEN) under the U.S. Treasury, supported by federal banking regulators.

Which industries must comply?

Banks, MSBs, casinos, securities firms, insurers, fintechs, and other financial intermediaries.

What reports are required?

SARs: Suspicious Activity Reports for unusual or suspected criminal activity.CTRs: Currency Transaction Reports for cash transactions above USD 10,000.

What penalties apply for violations?

Civil and criminal fines, enforcement actions, and reputational damage.

Bank Secrecy Act AML Law

United States

2024

Consumer Protection

Overview

The Bank Secrecy Act (BSA), adopted in 1970, is the foundation of the United States’ anti-money laundering (AML) and counter-terrorist financing (CTF) regime. It requires financial institutions to help detect and prevent money laundering, terrorism financing, and other illicit financial activities through record-keeping and mandatory reporting.

The law applies to banks, credit unions, money services businesses (MSBs), casinos, securities and investment firms, insurance companies, fintechs, and other financial intermediaries operating in or serving the U.S. market.

Key Obligations

Establish and maintain a risk-based AML compliance program
Conduct Customer Identification Program (CIP) and Know Your Customer (KYC) checks
File Currency Transaction Reports (CTRs) for transactions over USD 10,000
File Suspicious Activity Reports (SARs) with FinCEN for unusual or illicit activity

Maintain records of transactions and customer due diligence for at least 5 years
Appoint a compliance officer and provide regular AML training
Cooperate with regulators and law enforcement agencies

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