What is the Bank Secrecy Act?
The BSA — sometimes called the Currency and Foreign Transactions Reporting Act — created the US reporting and recordkeeping regime that supports law enforcement in tracing illicit funds. It has been expanded repeatedly, most significantly by the USA PATRIOT Act (2001) and the Anti-Money Laundering Act of 2020, which introduced beneficial-ownership reporting and modernised whistleblower and enforcement provisions.
In practice the BSA is the US implementation of the same anti-money-laundering controls FATF expects globally: know your customer, monitor activity, report suspicion, keep the evidence.
Who must comply
Sector detail: MSB compliance and BSA/AML compliance software.
Core BSA requirements
AML programme
Written, board-approved programme with a designated BSA officer, policies, training and independent testing.
Customer Identification Program (CIP)
Verify name, date of birth, address and identification number for every new account.
Customer Due Diligence & beneficial ownership
Understand the nature and purpose of the relationship and identify beneficial owners of legal-entity customers.
Currency Transaction Reports (CTRs)
Report cash transactions over USD 10,000 in a single business day, including aggregated amounts.
Suspicious Activity Reports (SARs)
File within 30 days of detecting suspicious activity — and never tip off the customer.
Recordkeeping & Travel Rule
Retain records for five years and transmit originator/beneficiary data on qualifying funds transfers.
CTRs, SARs and reporting thresholds
- CTR: Cash in or out above USD 10,000 in one business day, per person.
- SAR: Known or suspected criminal activity; USD 5,000 threshold for banks, USD 2,000 for many MSBs.
- FBAR: Foreign bank and financial accounts exceeding USD 10,000 in aggregate at any point in the year.
- Form 8300: Trades and businesses receiving more than USD 10,000 in cash in one transaction or related transactions.
- Travel Rule: Funds transfers of USD 3,000 or more must carry originator and beneficiary information.
Detection quality drives filing quality — see AML transaction monitoring and OFAC sanctions screening.
Penalties and enforcement
- Civil money penalties per violation, per day for continuing failures
- Criminal fines up to USD 500,000 and up to 10 years' imprisonment for wilful violations
- Consent orders, growth restrictions and independent monitors
- Personal liability for compliance officers and senior managers
- Loss of correspondent banking and licence revocation
Meeting BSA obligations with ComplianceSuite
ComplianceSuite covers CIP and KYC verification, beneficial-ownership checks, OFAC and PEP screening, transaction monitoring with tuned thresholds, SAR/CTR case files and five-year recordkeeping — with a complete audit trail for examiners.
Frequently asked questions
What is the Bank Secrecy Act?
The Bank Secrecy Act (BSA), enacted in 1970 and codified at 31 U.S.C. 5311 et seq., is the primary US anti-money-laundering statute. It requires financial institutions to keep records, report large cash and suspicious transactions, and maintain an AML compliance programme. It is administered by FinCEN.
Who has to comply with the BSA?
Banks and credit unions, money services businesses, broker-dealers, futures commission merchants, mutual funds, casinos and card clubs, insurance companies, precious-metals dealers, mortgage lenders and originators, and — under FinCEN rules and guidance — many crypto-asset businesses acting as money transmitters.
What is the CTR reporting threshold?
A Currency Transaction Report is required for cash transactions exceeding USD 10,000 by or on behalf of one person in a single business day, including multiple smaller transactions that aggregate above the threshold.
How quickly must a SAR be filed?
Within 30 calendar days of initial detection of facts that may constitute a basis for filing — extendable to 60 days if no suspect has been identified. Disclosing the existence of a SAR to the customer is prohibited.
What is structuring under the BSA?
Structuring is deliberately breaking cash transactions into amounts below USD 10,000 to avoid CTR filing. It is a federal crime under 31 U.S.C. 5324 regardless of whether the underlying funds are legitimate.
What are the penalties for BSA violations?
Civil penalties reach into the millions per violation, with wilful violations carrying criminal fines up to USD 500,000 and up to ten years' imprisonment. FinCEN and banking supervisors can also impose consent orders, growth restrictions and independent-monitor requirements.
Is the BSA the same as AML?
No. AML is the global discipline; the BSA — together with the USA PATRIOT Act, the AML Act of 2020 and FinCEN regulations — is the US legal framework that implements it.
Be examination-ready under the BSA.
One platform for CIP, screening, monitoring, SAR/CTR workflow and records — deployed in 48 hours.