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Mar19 - 23

Bank Secrecy Act Compliance: An Overview

The Bank Secrecy Act (BSA), another name for the Currency and Foreign Transactions Reporting Act of 1970, is a law that requires financial institutions to aid the U.S. government in detecting money laundering and terrorist financing networks. 

Regulated financial institutions such as Registered Investment Adviser, Broker-Dealer, and hybrid firms, as well as Private Fund and Hedge Funds, are required to be in compliance with the Bank Secrecy Act. Bates Group offers training and consulting services to improve your firm’s compliance program, from individual services like a mock compliance exam to team advising. 

What is the Bank Secrecy Act?

The Bank Secrecy Act is a law passed in 1970 that primarily aims at preventing money laundering. Specifically, it requires financial institutions to record transactions that involve amounts over $10,000, and report any suspicious activities that they might encounter. 

There is an extensive list of institutions which must remain BSA compliance. Just a few of them include insured and private banks, insurance companies, loan or finance companies, and even the U.S. Postal Service. Importantly, foreign financial institutions must also meet BSA compliance for operations in the U.S.

What types of transactions should be recorded under the law?

Records that should be kept to be in BSA compliance include but are not limited to extensions of credit over $10,000, international transactions larger than $10,000, account statements, checks and deposits larger than $100, and fund transfers larger than $3,000 should all be recorded. 

Additionally, institutions should document and report activity that appears suspicious. For instance, certain transactions may be below amounts that are required for documentation, but occur at intervals which suggest an attempt to transfer larger amounts of money unnoticed. 

The Federal Financial Institutions Examination Council (FFIEC) has more in-depth information available, and firms will need to study these requirements to ensure that they are maintaining records of all applicable transactions involved in their business. Compliance training may be helpful in keeping up with current regulations.

What is Compliance Training?

Bates Group offers Expert Compliance Training designed to teach the basics of anti-money laundering (AML), the Bank Secrecy Act (BSA), consumer compliance, and the role of the Office of Foreign Assets Control (OFAC). 

According to the FFIEC, banks must train personnel in BSA/AML compliance. Additionally, as regulations and requirements change, periodic training may be needed to remain in compliance with the law. Training may be tailored to an employee’s specific area, and should include “examples of money laundering and suspicious activity monitoring and reporting” involved in the employee’s duties. 

BSA Compliance Training with Bates Group

Regular compliance training can be an effective way to remain up to date with current BSA/AML requirements. At Bates Group, we have over 40 years of proven experience in consulting to help protect your business through all of the ups and downs of the markets. To learn more about what our experts can do for you, contact us today.




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