The Bank Secrecy Act (BSA) was passed by Congress in 1970 establishing the first laws for financial institutions to fight money laundering in the United States. Here are ten fast facts about the Banking Secrecy Act for credit unions:
- No boy scouts here! “The Financial Recordkeeping and Reporting of Currency and Foreign Transactions Act of 1970,” also referenced as “31 U.S.C. 5311 et seq.,” is more commonly referred to as the “Bank Secrecy Act” and shortened to BSA (which in the non-financial world is more commonly recognized as an acronym for the Boy Scouts of America).
- It all boils down to recording and reporting. The BSA requires financial institutions to keep records of cash purchases and file reports of cash purchases of more than $10,000 (daily aggregate amount). It further requires these banks and credit unions to report suspicious activity that might be a warning sign to money laundering, tax evasion, or other criminal activities.