Bank Secrecy Act (BSA) refers to the laws that require financial institutions to assist the US government in preventing, detecting and reporting money laundering, terrorist financing, and financial crimes
What It Means
BSA regulations require financial institutions to monitor its transactions to detect and report suspicious activities, maintain a customer information program, perform due diligence on clients, report certain cash transactions, file certain reports, develop a BSA compliance program, and other requirements. Due to the strong focus on preventing money laundering BSA is also referred to as the Anti-Money Laundering (AML) law or as BSA/AML.
Financial Crimes Enforcement Network (FinCEN), a bureau within the U.S. Department of Treasury, has the authority to promulgate and interpret the regulations implementing Bank Secrecy Act. Violations of BSA may attract enforcement actions from FinCEN.