What is the Bank Secrecy Act?
The Bank Secrecy Act (BSA) is an important federal law passed in 1970 that seeks to reduce fraud and money laundering by requiring banks and other financial institutions to report transactions of over $10,000 to the federal government. It also requires all financial institutions in the United States to put into effect an anti-money laundering (AML) program to detect suspicious activity. All Oklahoma banking institutions have to comply with the BSA. The purpose of the BSA is to prevent criminals from using the banking system to launder money and commit fraud. It enables banks to monitor customer transactions for suspicious activity and report any suspicious activity to the Financial Crimes Enforcement Network (FinCEN). FinCEN is a bureau of the US Department of Treasury that is responsible for overseeing the BSA. Financial institutions are required to maintain certain records on their customers that can be used to trace and identify suspicious activity. They are also subject to certain independent testing requirements to make sure that their anti-money laundering programs are properly implemented. Failure to comply with the BSA carries significant penalties, including fines and possible criminal prosecution. In summary, the Bank Secrecy Act is a federal law that is intended to reduce fraud and money laundering by requiring banks and other financial institutions to report certain large transactions to the government and put anti-money laundering programs into effect. All Oklahoma financial institutions must comply with the BSA in order to avoid substantial penalties.
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