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Apr12 - 22

What Are the Penalties for BSA Noncompliance? 

The Bank Secrecy Act (BSA) establishes program, recording, and reporting requirements for banks and money-handling institutions. Developed to mitigate money laundering and terrorist financing, BSA compliance is mandatory, and failure to comply can have severe penalties. Consider the following about penalties for BSA noncompliance, and call Bates Group directly to learn more about our BSA compliance support and anti-money laundering compliance program services

Penalties for BSA Noncompliance

The specific penalties that your business may face for a BSA violation will depend on the specifics of the violation and which part of the BSA was breached. For example, consider some of the civil monetary penalties associated with specific violations under the BSA:

  • Recordkeeping violations for fund transfers: $10,000
  • Willfully or grossly negligent recordkeeping violations: $10,000
  • Failure to terminate correspondence with foreign bank: $10,000
  • “General civil penalty”: $25,000
  • Willful violation of transaction (foreign financial agency transaction): $100,000
  • Violation of certain due diligence requirements, prohibition on correspondent accounts for shell banks, and special measures: $1,000,000

As you can see, the penalties vary widely. It’s important to note that charges are often stacked, which means that your business may face civil penalties for multiple offenses at once. What’s more, the above lists the minimum civil penalties last amended by statute; maximum penalty amounts are much greater, often more than double the amounts listed above.

Protecting Your Business with a BSA Compliance Program

Implementing a BSA compliance program is mandatory for money-service businesses. At Bates Group, we can help your business avoid severe penalties with a BSA compliance program that protects its interests and meets compliance requirements. We specialize in program development, program implementation, and program enhancement, as well as BSA consulting, independent reviews and testing, and training. A strong BSA compliance program must have internal controls, the designation of a BSA compliance officer, training, and independent testing. 

Call Bates Group Today to Learn More About BSA Penalties and Compliance

Putting your business at risk of BSA noncompliance isn’t worth the financial costs or the damage to your business’s reputation. To ensure that an audit doesn’t result in a finding of BSA noncompliance and the severe penalties that follow, it’s important to partner with a skilled BSA compliance consultant. At Bates Group we specialize in BSA and AML compliance and program design and monitoring. To learn more about the services that we can provide your business to help protect it from BSA noncompliance penalties, reach out to us today online or by phone. We have years of experience. 




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