Since 1970, Congress has enacted multiple measures to hinder criminal money laundering. At the foundation of it all is the Bank Secrecy Act (BSA), which requires traditional banks, credit unions and thrifts, as well as non-bank financial institutions, securities dealers and money services businesses, to keep specific records of events that could signal the occurrence of money laundering.
The Financial Crimes Enforcement Network (FinCEN) is the administrator of BSA. Over the years, BSA has been strengthened through subsequent anti-money laundering (AML) laws. This includes parts of USA PATRIOT Act compliance, which focus on money laundering in the form of terrorist financing.
AML/BSA compliance demands strong risk assessment and control of activities typically associated with money laundering. BSA/AML regulations require financial institutions to record and/or report on cash purchases of negotiable instruments, cash transactions exceeding $10,000 and suspicious activity that might indicate money laundering, tax evasion or other crimes. Failure to do so risks reputational damage and civil monetary penalties.
The primary way financial institutions report is by creating “paper trails” and implementing superior reporting and record-keeping capabilities to ensure the appropriate information is being collected for all transactions. BSA/AML regulations require financial institutions to:
- Keep records of cash purchases of negotiable instruments
- File reports of cash transactions above $10,000
- Report suspicious activity that might signify money laundering, tax evasion or other criminal activities
Contact CSI for Your BSA Audit Program Needs
With its enhanced documentation features and record-keeping and retention component, CSI's BSA/AML Audit tool, WatchDOG® Wire, will not only automate your wire process, but also help your institution stay compliant. If you need a more robust audit, CSI will perform an on-site review of your institution’s bank secrecy law compliance program.
Find out more about how CSI Regulatory Compliance can help your financial institution assess risk and meet federal regulations. Complete our short online form today.