Bank Secrecy Act (BSA)
US regulation mandating recordkeeping/reporting to combat money laundering.
Detailed Description
Bank Secrecy Act (BSA)
What is the main objective of the Bank Secrecy Act?
The main objective of the BSA is to promote transparency in financial transactions and prevent money laundering and terrorist financing.
What are Suspicious Activity Reports (SARs)?
SARs are reports that financial institutions must file when they detect suspicious transactions that may indicate money laundering or fraud.
What penalties can financial institutions face for non-compliance with the BSA?
Penalties for non-compliance can include civil and criminal penalties, as well as reputational damage.
How does the BSA impact real estate transactions?
The BSA impacts real estate transactions by requiring professionals to report suspicious activities, especially those involving large cash payments.
What is the role of the Financial Crimes Enforcement Network (FinCEN) in relation to the BSA?
FinCEN is the primary regulatory body overseeing BSA compliance and provides guidance on related regulations.