Bank Secrecy Act (BSA)

The Bank Secrecy Act was passed to fight money laundering in the U.S.  The BSA requires businesses to keep records and file reports that are determined to have a high degree of usefulness in criminal, tax and regulatory matters.  The documents filed by businesses under the BSA are heavily used by law enforcement agencies, both domestic and international, to identify, detect and deter money laundering.

The BSA requires U.S. financial institutions to keep records of cash purchases of negotiable instruments, file reports of cash transactions exceeding $10,000 (daily aggregate amount) and to report suspicious activity that might signify money laundering, tax evasion and other criminal activity.

Applies to “financial institutions” which means:

1. An insured bank of the Federal Deposit Insurance Act;
2. A commercial bank or trust company;
3. A private banker;
4. An agency or branch of a foreign bank in the U.S.;
5. Any credit union;
6. A thrift institution;
7. A broker or dealer registered with the Security Exchange Act;
8. A broker or dealer in securities or commodities;
9. An investment banker or investment company;
10. A currency exchange;
11. An insurer, redeemer, or cashier of travelers’ checks, checks, money orders or similar instruments;
12. An operator of a credit card system;
13. An insurance company;
14. A dealer in precious metals, stones or jewels;
15. A pawnbroker;
16. A lawn or finance company;
17. A travel agency;
18. A licensed sender of money;
19. A telegraph company;
20. A business engaged in vehicle sales, including automobiles, airplanes and boats;
21. Persons involved in real estate;
22. The U.S. Postal Service;
23. A casino, gambling casino or gaming establishment with annual gaming revenue of more than $1,000,000; and
24. Any business or agency designated by the Secretary of the Treasury to have a high degree of usefulness in criminal or regulatory matters.