The Bank Secrecy Act/Anti Money Laundering (BSA/AML)

BSA Requirements

-develop a written anti-money laundering compliance program -report specific large currency transactions -record specific large negotiable instrument purchases -report suspicious activity and transactions -record specific large wire transfers, monitor foreign account activities -cooperate with investigations -implement a customer identification program

The goals of the BSA

-preventing and detecting money laundering and criminal activity financing -documenting large currency transactions -improving reporting and aiding investigations of financial crimes

How long do you have toe keep a SAR?

5 years

Suspicious Activity Report (SAR)

A report that must be filed whenever a firm suspects that transactions of $5000 or more may be related to illegal activities

Filling out the SAR (before 30 days after initial detection)

BSA E-Filing System using the SAR Form 111 -Part 1 Subject Information -Part 2 Suspicious Activity Information -Part 3 Information about the Financial Institution Where the Activity Occurred -Part IV Filing Institution Contact Information -Part V Narrative

CTR

Currency Transaction Report

What is the formal name of the BSA?

Currency and Foreign Transactions Reporting Act of 1970

What is the purpose of BSA?

To prevent the US financial services industry from being used to lauder money