Bank Secrecy Act (BSA)
A US law, first passed in 1970, requiring financial institutions to keep records, report certain transactions and run anti-money laundering programs.
What the Bank Secrecy Act is
The Bank Secrecy Act (BSA) is the core US anti-money laundering law. FinCEN, a bureau of the Treasury, writes and enforces its rules, and bank regulators examine banks against them. It requires an anti-money laundering (AML) program, KYC checks under the customer identification and customer due diligence rules, recordkeeping and reports to the government.
How it works
Covered institutions file currency transaction reports (CTRs) for large cash transactions and suspicious activity reports (SARs) when something looks wrong. They keep records, such as funds transfer details, and screen customers and payments against OFAC sanctions lists, a related legal duty.
- 01 · IDENTIFY Institutions verify who customers are and understand their expected activity.
- 02 · MONITOR They watch transactions for activity that does not fit the customer's profile.
- 03 · REPORT They file CTRs and SARs with FinCEN and keep records for five years.
| Report | When it is filed | Who files |
|---|---|---|
| Currency transaction report (CTR) | Cash transactions over $10,000 in one business day | The financial institution |
| Suspicious activity report (SAR) | Activity that may involve a crime or money laundering | The financial institution |
| Report of Foreign Bank and Financial Accounts (FBAR) | A US person's foreign accounts exceed $10,000 combined at any time in the year | The US person with an interest in or authority over the accounts |
Banks generally file SARs for suspicious transactions of $5,000 or more; insider abuse has no minimum.
Who must comply
- Banks, savings associations and credit unions
- Money services businesses, such as money transmitters and check cashers
- Broker-dealers, mutual funds, casinos and card clubs
- Fintechs that serve customers through a sponsor bank, under the bank's BSA program
Cross River's compliance management system pairs KYC and know your business (KYB) reviews with sample transaction reviews, annual relationship reviews, and testing and monitoring. See how Cross River approaches compliance.