The statute sought to achieve that objective by requiring individuals, banks, and other financial institutions to file currency reports with the U. Department of the Treasury U. Treasury , properly identify persons conducting transactions, and maintain a paper trail by keeping appropriate records of financial transactions. These records enable law enforcement and regulatory agencies to pursue investigations of criminal, tax, and regulatory violations, if warranted, and provide evidence useful in prosecuting money laundering and other financial crimes.
The Money Laundering Control Act of precludes circumvention of the BSA requirements by imposing criminal liability on a person or financial institution that knowingly assists in the laundering of money, or that structures transactions to avoid reporting them. The statute directed banks to establish and maintain procedures reasonably designed to ensure and monitor compliance with the reporting and recordkeeping requirements of the BSA.
As a result, on January 27, , all federal banking agencies issued essentially similar regulations requiring banks to develop programs for BSA compliance. A banking organization is required to file a SAR whenever it detects a known or suspected criminal violation of federal law or a suspicious transaction related to money laundering activity or a violation of the BSA.
Among other things, the USA PATRIOT Act criminalized the financing of terrorism and augmented the existing BSA framework by strengthening customer identification procedures; prohibiting financial institutions from engaging in business with foreign shell banks; requiring financial institutions to have due diligence procedures and, in some cases, enhanced due diligence EDD procedures for foreign correspondent and private banking accounts; and improving information sharing between financial institutions and the U.
Certain government agencies play a critical role in implementing BSA regulations, developing examination guidance, ensuring compliance with the BSA, and enforcing the BSA. These agencies include the U. Internationally there are various multilateral government bodies that support the fight against money laundering and terrorist financing. Refer to Appendix E "International Organizations" for additional information.
The BSA authorizes the Secretary of the Treasury to require financial institutions to establish AML programs, file certain reports, and keep certain records of transactions. FinCEN, a bureau of the U. Treasury, is the delegated administrator of the BSA.
In this capacity, FinCEN issues regulations and interpretive guidance, provides outreach to regulated industries, supports the examination functions performed by federal banking agencies, and pursues civil enforcement actions when warranted. FinCEN relies on the federal banking agencies to examine banks within their respective jurisdictions for compliance with the BSA.
The federal banking agencies are responsible for the oversight of the various banking entities operating in the United States, including foreign branch offices of U. The federal banking agencies may use their authority, as granted under section 8 of the FDIA or section of the FCUA, to enforce compliance with appropriate banking rules and regulations, including compliance with the BSA. The federal banking agencies require each bank under their supervision to establish and maintain a BSA compliance program.
When the USA PATRIOT Act was passed, banks under the supervision of a federal banking agency were already required by law to establish and maintain a BSA compliance program that, among other things, requires the bank to identify and report suspicious activity promptly. For this reason, 31 CFR Commodity Futures Trading Commission. Banks should take reasonable and prudent steps to combat money laundering and terrorist financing and to minimize their vulnerability to the risk associated with such activities.
Some banking organizations have damaged their reputations and have been required to pay civil money penalties for failing to implement adequate controls within their organization resulting in noncompliance with the BSA. Management must be vigilant in this area, especially as business grows and new products and services are introduced.
OFAC administers and enforces economic and trade sanctions based on U. Many of the sanctions are based on United Nations and other international mandates, are multilateral in scope, and involve close cooperation with allied governments. The BSA is intended to safeguard the U. Money laundering and terrorist financing are financial crimes with potentially devastating social and financial effects.
Security Officer. Thank you. We can always count on the support from CSI to be timely and competent in its field. The staff is knowledgeable and makes the information—even the technical issues—easy to understand.
There were no results found using your criteria. Please adjust your search parameters. Load More. Related Content. View All. Customer Story. Product Brochure. Office of the Comptroller of the Currency. Search OCC Website. About About Overview. Topics Overview. Share This Page:. BSA Law Enforcement Tools and Resources In addition to utilizing information filed by banks in money laundering and terrorist financing investigations, U. Counter-Terrorist Financing U. Money Laundering Criminals have long used money-laundering schemes to conceal or "clean" the source of fraudulently obtained or stolen funds.
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