Jurisdiction: the Bank Secrecy Act (BSA)
is to assist U.S. government agencies in detecting and preventing money laundering and terrorist financing. In essence. In essence, the BSA and certain provisions in the Patriot Act comprise the AML compliance laws in the United States. Facts you need to know
- Under the BSA, banks and other financial institutions are required to file reports of cash transactions, currency transactions (CTR) and International Transportation of Currency or Monetary Instruments (CMIRs) in the sum of USD 10,000 or more.
This sum may be attained in a single transaction or a series of transactions that appear to be connected.
- Section 352 of the USA Patriot Act requires financial institutions to establish AML compliance programs, which must include: the development of internal controls; designation of an AML compliance officer; an ongoing employee training program; and scheduled independent audits.
- In accordance with 18 USC 1956, the U.S. Department Of Justice may bring criminal actions for money laundering that may include fines, imprisonment and forfeiture actions.
Any individual, including a bank employee, intentionally violating the BSA or its implementing regulations is subject to a criminal fine of up to USD 250,000 or 5 years in prison, or both.
- A bank that violates certain BSA provisions, including 31 USC 5318(i), or special measures imposed under 31 USC 5318A, faces criminal money penalties up to USD 1 million or twice the value of the transaction.
- Legal entities should keep records of all cash transactions and inform the Financial Crimes Enforcement Network FinCEN of transactions that are linked to money laundering and terrorist financing.
In a bid to decrease the success rates of financial crimes, the BSA mandates financial institutions to make Monetary Instrument Logs (MLIs) for cash purchases of monetary instruments in total value of USD 3,000 to 10,000.