Bank Secrecy Act

Bank Secrecy Act of 1970FBARanti-money laundering proceduresBank Secrecy Act (BSA)Department of the Treasury Form 90-22.1 Report of Foreign Bank and Financial Accounts
The Bank Secrecy Act of 1970 (BSA), also known as the Currency and Foreign Transactions Reporting Act, is a U.S. law requiring financial institutions in the United States to assist U.S. government agencies in detecting and preventing money laundering.wikipedia
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Patriot Act, Title III

Title IIIthird titleUSA PATRIOT Act, Title III
It has been amended several times, including provisions in Title III of the USA PATRIOT Act, which amended the BSA to require financial institutions to establish anti-money-laundering programs by establishing internal policies, procedures, and controls, designating compliance officers, providing ongoing employee training, and testing their programs through independent audits.
The title's sections primarily amend portions of the Money Laundering Control Act of 1986 and the Bank Secrecy Act of 1970.

California Bankers Assn. v. Shultz

Several cases were combined before the Supreme Court in California Bankers Assn. v. Shultz, which ruled that the Act did not violate the Constitution.
California Bankers Assn. v. Shultz, 416 U.S. 21 (1974), was a US Supreme Court case in which the Court held that the Bank Secrecy Act, passed by Congress in 1970 requiring banks to record all transactions and report certain domestic and foreign transactions of high dollar amounts to the United States Treasury, did not violate the First, Fourth, and Fifth Amendments of the US Constitution.

Structuring

smurfingstructuredbroke up the transactions
A currency transaction report (CTR) reports cash transactions exceeding $10,000 in one business day, regardless of whether it's in one transaction or several cash transactions.
Structuring, also known as smurfing in banking jargon, is the practice of executing financial transactions such as making bank deposits in a specific pattern, calculated to avoid triggering financial institutions to file reports required by law, such as the United States' Bank Secrecy Act (BSA) and Internal Revenue Code section 6050I (relating to the requirement to file Form 8300).

Patriot Act

USA PATRIOT ActUS Patriot ActU.S. Patriot Act
It has been amended several times, including provisions in Title III of the USA PATRIOT Act, which amended the BSA to require financial institutions to establish anti-money-laundering programs by establishing internal policies, procedures, and controls, designating compliance officers, providing ongoing employee training, and testing their programs through independent audits.
It primarily amends portions of the Money Laundering Control Act of 1986 (MLCA) and the Bank Secrecy Act of 1970 (BSA).

Money laundering

money-launderinglaunderinganti-money laundering
The Bank Secrecy Act of 1970 (BSA), also known as the Currency and Foreign Transactions Reporting Act, is a U.S. law requiring financial institutions in the United States to assist U.S. government agencies in detecting and preventing money laundering.
In an attempt to prevent dirty money from entering the U.S. financial system in the first place, the United States Congress passed a series of laws, starting in 1970, collectively known as the Bank Secrecy Act (BSA).

Money order

money ordersPostal Money Ordermoney-order
A monetary instrument log (MIL) must indicate cash purchases of monetary instruments, such as money orders, cashier's checks, and traveler's checks valued between $3,000 and $10,000.
Because of provisions within the USA PATRIOT Act and the Bank Secrecy Act, money orders have far more regulatory processing requirements than personal cheques, cashier's cheques, or certified cheques.

Financial Crimes Enforcement Network

FinCENFinancial Crimes Enforcement Network (FinCEN)financial crimes unit of the Treasury Department
It is filed electronically with the Financial Crimes Enforcement Network (FinCEN) and is identified as FinCEN Form 112 (formerly Form 104).
In 2009, the GAO found "opportunities" to improve "interagency and state examination coordination", noting that the federal banking regulators issued an interagency examination manual, that SEC, CFTC, and their respective self-regulatory organizations developed Bank Secrecy Act (BSA) examination modules, and that FinCEN and IRS examining nonbank financial institutions issued an examination manual for money services businesses.

United States v. Bajakajian

fines
In 1998, the Supreme Court ruled in United States v. Bajakajian that the government may not confiscate money from an individual for failure to report it on a Currency and Other Monetary Instruments Report (CMIR), as such punishment would be "grossly disproportional to the gravity of [the] offense" and unconstitutional under the Excessive Fines clause of the Eighth Amendment.
The federal government sought forfeiture of the entire sum under the Bank Secrecy Act (BSA), which requires all international currency transfers exceeding $10,000 in value to be reported on a Currency and Other Monetary Instruments Report (CMIR); the BSA also allows forfeiture of "any property, real or personal" in cases of violations.

Casino regulations under the Bank Secrecy Act

Title 31
Although Title 31, also known as the Bank Secrecy Act, was originally focused on financial institutions, criminal use of banking services located within casinos created a need for additional regulations that were specific to casinos.

Cashier's check

bank draftbank chequebank check
A monetary instrument log (MIL) must indicate cash purchases of monetary instruments, such as money orders, cashier's checks, and traveler's checks valued between $3,000 and $10,000.
Because of US regulatory requirements associated with the Patriot Act and the Bank Secrecy Act due to updated concerns over money laundering, most insurance and brokerage firms will no longer accept money orders as payment for insurance premiums or as deposits into brokerage accounts.

Customer Identification Program

The CIP must be incorporated into the bank's Bank Secrecy Act/Anti-money laundering compliance program, which is subject to approval by the financial institution's board of directors.

Suspicious activity report

suspicious activity reportsSARreport transactions of a suspicious nature
The purpose of a suspicious activity report is to detect and report known or suspected violations of law or suspicious activity observed by financial institutions subject to the regulations (for example, the Bank Secrecy Act (BSA)).

Wachovia

Wachovia BankWachovia CorporationFirst National Bank of Atlanta
In March 2010, Wachovia admitted to "serious and systemic" violations of the Bank Secrecy Act for laundering $378 billion between 2004 and 2007, the largest violation in terms of a dollar amount.
In March 2010, Wachovia admitted "serious and systemic" violations of the Bank Secrecy Act that allowed Mexican and Colombian drug cartels to launder $378.4 billion between 2004 and 2007, the "largest violation of the Bank Secrecy Act".

Law of the United States

United States federal lawUnited States lawAmerican lawyer
The Bank Secrecy Act of 1970 (BSA), also known as the Currency and Foreign Transactions Reporting Act, is a U.S. law requiring financial institutions in the United States to assist U.S. government agencies in detecting and preventing money laundering.

Financial institution

financial institutionsbanking institutionfinance company
The Bank Secrecy Act of 1970 (BSA), also known as the Currency and Foreign Transactions Reporting Act, is a U.S. law requiring financial institutions in the United States to assist U.S. government agencies in detecting and preventing money laundering.

United States

AmericanU.S.USA
The Bank Secrecy Act of 1970 (BSA), also known as the Currency and Foreign Transactions Reporting Act, is a U.S. law requiring financial institutions in the United States to assist U.S. government agencies in detecting and preventing money laundering.

Government agency

agencygovernment agenciesGovernmental organization
The Bank Secrecy Act of 1970 (BSA), also known as the Currency and Foreign Transactions Reporting Act, is a U.S. law requiring financial institutions in the United States to assist U.S. government agencies in detecting and preventing money laundering.

Negotiable instrument

bills of exchangebill of exchangenegotiable instruments
Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, file reports if the daily aggregate exceeds $10,000, and report suspicious activity that may signify money laundering, tax evasion, or other criminal activities.

Tax evasion

tax fraudincome tax evasionevasion
Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, file reports if the daily aggregate exceeds $10,000, and report suspicious activity that may signify money laundering, tax evasion, or other criminal activities.

United States Congress

CongressU.S. CongressCongressional
The BSA was originally passed by the U.S. Congress in 1970 and signed by President Richard Nixon into law on October 26, 1970.

Richard Nixon

Richard M. NixonNixonPresident Nixon
The BSA was originally passed by the U.S. Congress in 1970 and signed by President Richard Nixon into law on October 26, 1970.

Fourth Amendment to the United States Constitution

Fourth AmendmentFourthU.S. Const. amend. IV
Shortly after passage, several groups attempted to have the courts rule the law unconstitutional, claiming it violated both Fourth Amendment rights against unwarranted search and seizure, and Fifth Amendment rights of due process.

Fifth Amendment to the United States Constitution

Fifth AmendmentFifthU.S. Const. amend. V
Shortly after passage, several groups attempted to have the courts rule the law unconstitutional, claiming it violated both Fourth Amendment rights against unwarranted search and seizure, and Fifth Amendment rights of due process.

Due Process Clause

due processdue process of lawdue process rights
Shortly after passage, several groups attempted to have the courts rule the law unconstitutional, claiming it violated both Fourth Amendment rights against unwarranted search and seizure, and Fifth Amendment rights of due process.

Supreme Court of the United States

United States Supreme CourtU.S. Supreme CourtSupreme Court
Several cases were combined before the Supreme Court in California Bankers Assn. v. Shultz, which ruled that the Act did not violate the Constitution. In 1998, the Supreme Court ruled in United States v. Bajakajian that the government may not confiscate money from an individual for failure to report it on a Currency and Other Monetary Instruments Report (CMIR), as such punishment would be "grossly disproportional to the gravity of [the] offense" and unconstitutional under the Excessive Fines clause of the Eighth Amendment.