Certified Fraud Examiner Practice

The U.S. Bank Secrecy Act (BSA) of 1970 imposes significant obligations on financial institutions to combat money laundering and other financial crimes. One of the key requirements established by the BSA is the necessity for these institutions to maintain detailed records and report certain large and suspicious transactions to the appropriate government authorities.

Specifically, financial institutions are mandated to report cash transactions exceeding a threshold amount (often set at $10,000) and to report any transactions that they find suspicious and could indicate potential money laundering or fraud. This is crucial for authorities to monitor and investigate illicit activities effectively.

Maintaining customer confidentiality is important in the financial sector, but the BSA requires reporting under specific circumstances, hence making record-keeping for large and suspicious transactions the primary focus of compliance with the Act. Disclosing all customer transactions to the government or simply reporting minor transactions does not align with the law’s intent, which strategically targets significant monetary movements that may imply criminal activity.