The Currency and Foreign Transactions Reporting Act of 1970 commonly referred to as the “Bank Secrecy Act” or “BSA,” requires U.S. financial institutions to assist U.S. government agencies to detect and prevent money laundering. Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, file reports of cash transactions exceeding $10,000 (daily aggregate amount), and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities. The BSA is sometimes referred to as an “anti-money laundering” law (“AML”) or jointly as “BSA/AML.” Several AML acts, including provisions in Title III of the USA PATRIOT Act of 2001, have been enacted up to the present to amend the BSA.
Among its many provisions, the BSA requires businesses to keep records and file reports that are determined to have a high degree of usefulness in criminal, tax, and regulatory matters. The documents filed by businesses under the BSA requirements are heavily used by law enforcement agencies, both domestic and international to identify, detect and deter money laundering whether it is in furtherance of a criminal enterprise, terrorism, tax evasion or other unlawful activity.
Another major provision of the BSA requires individuals to Report Foreign Bank and Financial Accounts (FBAR) to the Internal Revenue Service. If you own a foreign bank account, brokerage account, mutual fund, unit trust, or other financial account, then you may be required to report the account yearly to the Internal Revenue Service.
Whether you are seeking assistance in ensuring that you and/or your business are in compliance with BSA requirements or you’ve already been contacted by the Internal Revenue Service or another regulatory body regarding compliance with the Bank Secrecy Act, we can help. Our BSA/AML representation will provide the assurance you need that you and/or your business are in compliance with the Bank Secrecy Act and related anti-money laundering laws.