Bank Secrecy Act
BSAAlso called currency and Foreign Transactions Reporting Act, BSA/AML
The Bank Secrecy Act is the main US anti-money laundering law. Passed in 1970, it requires banks and other financial institutions to keep records, file reports on large cash transactions and suspicious activity, and run AML programmes. FinCEN administers it, and federal banking agencies examine firms for compliance.
How it works
Covered institutions run a BSA/AML programme with internal controls, independent testing, a designated BSA officer, training and customer due diligence. They file currency transaction reports for cash transactions over $10,000 and suspicious activity reports with FinCEN, usually within 30 days of detection. They also keep records of funds transfers and monetary instruments. Examiners from the OCC, Federal Reserve, FDIC and other agencies test these controls.
The BSA matters because it underpins US enforcement against banks, money services businesses, broker-dealers and casinos. Penalties can reach billions of dollars and lead to monitorships and growth restrictions. The USA PATRIOT Act and the AML Act of 2020 widened its scope. FinCEN proposed a new risk-based AML/CFT programme rule in April 2026.
The rules
Requires recordkeeping and reporting that helps detect money laundering, implemented through FinCEN regulations at 31 CFR Chapter X.
Banks, broker-dealers, money services businesses, casinos and other financial institutionsAdded customer identification programmes, AML programme requirements for all financial institutions, due diligence for foreign correspondent and private banking accounts and information sharing.
Financial institutions subject to the BSAModernised the BSA with risk-based programme priorities, expanded whistleblower awards and the Corporate Transparency Act.
Financial institutions subject to the BSACommon questions
What is the difference between a CTR and a SAR?
A currency transaction report is automatic for cash transactions over $10,000 in a business day. A suspicious activity report is based on judgement and filed when a firm suspects possible crime, with dollar thresholds set by FinCEN rules for each industry.
Who enforces the Bank Secrecy Act?
FinCEN, a bureau of the US Treasury, administers the BSA and can impose civil penalties. The OCC, Federal Reserve, FDIC, NCUA, SEC and FINRA examine their firms. The Department of Justice prosecutes criminal violations.
Why is it called the Bank Secrecy Act?
The name reflects its purpose of preventing banks from being used to hide money, including through secret foreign accounts. It does not protect bank secrecy. It requires disclosure of information to the government.
