Bank Secrecy Act - wikipedia Bank Secrecy Act Bank Security Other short titles Currency and Foreign Transactions Reporting Act Reports of Currency and Foreign Transactions Domestic Currency Transactions Reports of Exports and Imports of Monetary Instruments Foreign Transactions Long title An Act to amend the Federal Deposit Insurance Act to require insured banks to maintain certain records, to require that certain transactions in U.S. currency be reported to the Department of the Treasury, and for other purposes. Acronyms ( colloquial ) BSA Nicknames Federal Deposit Insurance Act Amendments Enacted by the 91st United States Congress Effective October 26, 1970 Citations Public law 91 - 508 Statutes at Large 84 Stat. 1114 - 2 aka 84 Stat. 1118 Codification Titles amended 12 U.S.C. : Banks and Banking 15 U.S.C. : Commerce and Trade U.S.C. sections amended 12 U.S.C. ch. 13 § 1724 12 U.S.C. ch. 16 § 1813 15 U.S.C. ch. 2B § 78a Legislative history Introduced in the House as H.R. 15073 Passed the House on May 25, 1970 ( 302 - 0 ) Signed into law by President Richard Nixon on October 26, 1970 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 to detect and prevent money laundering. 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. The BSA is sometimes referred to as an anti-money laundering law ( AML ) or jointly as BSA / AML. Contents 1 History 2 Reports 2.1 Currency transaction reports 2.2 Suspicious activity report 2.3 FBAR 2.4 Other reports 3 Sanctions 4 Additional information 5 See also 6 References 7 External links History The BSA was originally passed by the U.S. Congress in 1970 and signed by President Richard Nixon into law on October 26, 1970. Until the 1980s there was a `` prolonged period of inaction '', but financial institutions eventually complied with the BSA 's reporting requirements. 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, testing their programs through independent audits. Reports BSA regulations require all financial institutions to submit five types of reports. Individuals must file a individual filing requirement. Currency transaction reports Main article : Currency transaction report 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. It is filed electronically with the Financial Crimes Enforcement Network ( FinCEN ) and is identified as FinCEN Form 112 ( formerly Form 104 ). CTRs include an individual 's bank account number, name, address, and social security number. SAR reports, required when transactions indicate behavior designed to elude CTRs ( or many other types of suspicious activities ), include somewhat more detailed information and usually include investigation efforts on the part of the financial institution to assess the validity or nature of the transactions. A single CTR filed for a client 's account is usually of no concern to the authorities, while multiple CTRs from varying institutions or a SAR suggest that activity may be suspicious. Suspicious activity report Main article : Suspicious activity report A suspicious activity report ( SAR ) must report any cash transaction where the customer seems to be trying to avoid BSA reporting requirements by not filing CTR or MIL, for example. A SAR must also be filed if the customer 's actions suggest that he is laundering money or otherwise violating federal criminal laws and committing wire transfer fraud, check fraud, or mysterious disappearances. The bank should not let the customer know that a SAR is being filed. These reports are filed with FinCEN and are identified as Treasury Department Form 90 - 22.47 and OCC Form 8010 - 9, 8010 - 1. This requirement and its accompanying implied gag order was added by the Annunzio - Wylie Anti-Money Laundering Act § 1517 ( b ) ( part of the Housing and Community Development Act of 1992, Pub. L. 102 -- 550, 106 Stat. 3762, 4060 ). A financial institution is not allowed to inform a business or consumer that a SAR is being filed, and all the reports mandated by the BSA are exempt from disclosure under the Freedom of Information Act. FBAR U.S. citizens and residents with a financial interest in or authority over foreign bank accounts or `` foreign financial accounts '' with an aggregate value of $10,000 are required to file a Foreign Bank Account Report ( FBAR ) with the U.S. Treasury by June 30 every year. It is identified as FinCEN Form 114 ( formerly Treasury Department Form 90 - 22.1 ). Additionally, they must report the accounts on Schedule B of the Form 1040 tax form. Critics argue that FBAR wastes time and money, `` perversely discouraging compliance '' without focusing `` likely criminal activity ''. A recent district court case in the Tenth Circuit has significantly expanded the definition of `` interest in '' and `` other Authority ''. Other reports 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. This form is required to be kept on record at the financial institution for at least five years, and produced at the request of examiners or audit to verify compliance. The `` Report of International Transportation of Currency or Monetary Instruments '', also referred to as a Currency and Monetary Instrument Report ( CMIR ), must be filed by each person or institution that physically transports, mails, or ships, or causes to be physically transported, mailed, shipped, or received, currency, traveler 's checks, and certain other monetary instruments in an aggregate amount exceeding $10,000 into or out of the United States must file a CMIR. It is identified as FinCEN Form 105 Report. Banks are required to file a Designation of Exempt Person ( FinCEN Form 110 ) to designate an exempt customer for the purpose of CTR reporting under the BSA. In addition, banks use this form once every two years to renew exemptions for eligible non-listed business and payroll customers. It also requires any business receiving one or more related cash payments totaling more than $10,000 to file IRS / FinCEN Form 8300. Sanctions There are heavy penalties for individuals and financial institutions that fail to file CTRs, MILs, or SARs. There are also penalties for a bank which discloses to its client that it has filed a SAR about the client. Penalties include heavy fines and prison sentences. IRC § 6038D requires that all U.S. persons, individuals, corporations, partnerships, LLCs, and trusts, provide timely information regarding their foreign accounts, otherwise a $10,000 penalty will result for every month it is late ( subject to a certain maximum penalty ). 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. Bajakajian and his family had tried to take $357,144 out of the United States in their luggage, and the government had seized it under the Bank Secrecy Act, which allows forfeiture of `` any property, real or personal, involved in such offense ''. It was the first time the Supreme Court struck down the federal government 's `` aggressive use of forfeiture ''. 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. It allowed Mexican and Colombian drug cartels to launder money through casas de cambio by willfully failing to set up an effective anti-money - laundering program. Additional information An entire industry has developed around providing software to analyze transactions in an attempt to identify transactions or patterns of transactions called structuring, which requires SAR filing. Financial institutions are subject to penalties for failing to properly file CTRs and SARs, such as heavy fines and regulatory restrictions, including charter revocation. These software applications effectively monitor customer transactions on a daily basis, and using a customer 's past transactions and account profile, provide a `` whole picture '' of the customer to the bank management. Transaction monitoring can include cash deposits and withdrawals, wire transfers, and ACH activity. In the banking industry, these applications are known as `` BSA software '' or `` anti-money laundering software ''. See also Casino regulations under the Bank Secrecy Act Continuing Criminal Enterprise Customer Identification Program FATF Blacklist Financial Action Task Force on Money Laundering Financial Crimes Enforcement Network Financial Services Authority Know your customer Mann Act Money Laundering Control Act Suspicious activity report References Jump up ^ Meltzer, P.E. ( 1991 ). `` Keeping Drug Money from Reaching the Wash Cycle : A Guide to the Bank Secrecy Act ''. Banking Law Journal. 108 ( 3 ) : 230 -- 255. Jump up ^ `` Archived copy ''. Archived from the original on 2011 - 03 - 07. Retrieved 2011 - 03 - 02. ^ Jump up to : Linn, Courtney J. ( 2010 ). `` Redefining the Bank Secrecy Act : Currency Reporting and the Crime of Structuring ''. Santa Clara Law Review. 50 ( 2 ) : 407 -- 513. Jump up ^ `` Archived copy ''. Archived from the original on 2013 - 06 - 26. Retrieved 2013 - 06 - 28. Jump up ^ 31 CFR 1020.320 ( formerly 31 CFR 103.21 ) ; 12 CFR 12.11 Jump up ^ `` Report of Foreign Bank and Financial Accounts ( FBAR ) ''. Jump up ^ IRS Publication 4261 Jump up ^ Christians, Allison ( October 13, 2014 ). `` Paperwork and Punishment : It 's Time to Fix FBAR ''. Tax Notes International. 73. SSRN 2510544. Jump up ^ 31 USCA 5316 ( a ) Jump up ^ 31 CFR 103.22 ( d ) ( 3 ) ( i ) Jump up ^ 31 CFR 103.22 ( d ) ( 5 ) ( i ) Jump up ^ `` Publication 1544 ( Rev. September 2012 ). Reporting Cash Payments of Over $10,000 '' ( PDF ). IRS. 2012 - 09 - 21. Retrieved 2013 - 06 - 28. Jump up ^ `` FATCA and FBAR Reporting & Seven Practical Implications ''. 27 March 2014. Jump up ^ Savage, David G. ( 4 November 1997 ). `` U.S. Supreme Court to Hear Forfeiture Case ''. Los Angeles Times. Retrieved 6 February 2018. Jump up ^ Greenhouse, Linda ( 23 June 1998 ). `` upreme Court Roundup ; Justices Narrow the Uses of Forfeiture ''. New York Times. Retrieved 6 February 2018. Jump up ^ Sanati, Cyrus ( 29 June 2010 ). `` Money Laundering : The Drug Problem at Banks ''. New York Times. Retrieved 6 February 2018. Jump up ^ Voreacos, David. `` Wachovia to Pay $160 to End Money Laundering Probe ''. Businessweek. Archived from the original on March 23, 2010. Jump up ^ Evan Perez ; Glenn R. Simpson ( 26 April 2008 ). `` Wachovia Is Under Scrutiny In Latin Drug - Money Probe ''. Wall Street Journal. Archived from the original on 6 February 2018. Retrieved 6 February 2018. Jump up ^ Vulliamy, Ed ( 2 April 2012 ). `` How a big US bank laundered billions from Mexico 's murderous drug gangs ''. The Guardian. Retrieved 6 February 2018. External links Banking Secrecy Act Comptroller 's Handbook Department of the Treasury, Comptroller of the Currency, Administrator of the National Banks December 2000. 31 USC Sec 5311 -- 5332 Patterns of Abuse : Assessing Bank Secrecy Act Compliance and Enforcement : Hearing before the Committee on Banking, Housing, and Urban Affairs, United States Senate, One Hundred Thirteenth Congress, First Session, March 7, 2013 Public Law 91 - 508, 91st Congress, H.R. 15073 : Federal Deposit Insurance Act, amendments, 1970 Bank Secrecy Act Section 16. Report of Foreign Bank and Financial Accounts ( FBAR ) Bank regulation in the United States Federal authorities Consumer Financial Protection Bureau Farm Credit Administration Federal Deposit Insurance Corporation Federal Financial Institutions Examination Council Federal Housing Finance Agency Federal Reserve Board of Governors Financial Stability Oversight Council National Credit Union Administration Office of the Comptroller of the Currency Major federal legislation Independent Treasury Act National Bank Act Federal Reserve Act McFadden Act 1933 Banking Act Glass -- Steagall Act Federal Credit Union Act Bank Holding Company Act Interest Rate Control Act of 1966 Truth in Lending Act Bank Secrecy Act Fair Credit Reporting Act Home Mortgage Disclosure Act Community Reinvestment Act Electronic Fund Transfer Act Financial Institutions Regulatory and Interest Rate Control Act of 1978 Monetary Control Act Depository Institutions Act Competitive Equality Banking Act of 1987 FIRREA FDICIA Truth in Savings Act Riegle - Neal IBBEA Gramm -- Leach -- Bliley Act Fair and Accurate Credit Transactions Act Emergency Economic Stabilization Act Credit CARD Act Dodd - Frank Federal Reserve Board regulations Extensions of Credit by Federal Reserve Banks ( Reg A ) Equal Credit Opportunity ( Reg B) Home Mortgage Disclosure ( Reg C ) Reserve Requirements for Depository Institutions ( Reg D ) Electronic Fund Transfer ( Reg E ) Limitations on Interbank Liabilities ( Reg F ) International Banking Operations ( Reg K ) Consumer Leasing ( Reg M ) Loans to Insiders ( Reg O ) Privacy of Consumer Financial Information ( Reg P ) Prohibition Against the Paying of Interest on Demand Deposits ( Reg Q ) Credit by Brokers and Dealers ( Reg T ) Credit by Banks and Persons Other Than Brokers or Dealers for the Purpose of Purchasing or Carrying Margin Stock ( Reg U ) Transactions Between Member Banks and Their Affiliates ( Reg W ) Borrowers of Securities Credit ( Reg X ) Truth in Lending ( Reg Z ) Unfair or Deceptive Acts or Practices ( Reg AA ) Community Reinvestment ( Reg BB ) Availability of Funds and Collection of Checks ( Reg CC ) Truth in Savings ( Reg DD ) Types of bank charter Credit union Federal savings association Federal savings bank National bank State bank State authorities California Colorado Florida Illinois Maryland Michigan New Jersey New York Ohio Oklahoma Oregon Pennsylvania Tennessee Virginia Terms Call report CAEL Rating CAMELS rating system Thrift Financial Report Other topics Banking in the United States Fair debt collection History of central banking in the United States Wildcat banking Portal Patriot Act Titles I -- II -- III -- IV -- V -- VI -- VII -- VIII -- IX -- X Statute legislative and judicial history History of the Patriot Act Acts modified Omnibus Crime Control and Safe Streets Act of 1968 Electronic Communications Privacy Act Computer Fraud and Abuse Act Foreign Intelligence Surveillance Act Family Educational Rights and Privacy Act Money Laundering Control Act Bank Secrecy Act Right to Financial Privacy Act Fair Credit Reporting Act Immigration and Nationality Act of 1952 Victims of Crime Act of 1984 Telemarketing and Consumer Fraud and Abuse Prevention Act People George W. 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Sununu Richard Durbin Bernie Sanders Jerrold Nadler John Conyers, Jr. Butch Otter Government organizations Federal Bureau of Investigation Department of Justice Select Committee on Intelligence Department of the Treasury FinCEN Department of State National Institute of Standards and Technology Customs Service U.S. Immigration and Customs Enforcement Non-government organizations American Civil Liberties Union American Library Association Center for Democracy and Technology Center for Public Integrity Electronic Frontier Foundation Electronic Privacy Information Center Humanitarian Law Project Retrieved from `` https://en.wikipedia.org/w/index.php?title=Bank_Secrecy_Act&oldid=828215717 '' Categories : 1970 in law 91st United States Congress Bank Secrecy Act Money laundering United States federal criminal legislation 1970 in the United States Hidden categories : All articles with unsourced statements Articles with unsourced statements from February 2018 Pages using div col with deprecated parameters Talk Contents About Wikipedia Add links This page was last edited on 1 March 2018, at 06 : 17. 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Question: fincen form 112 the currency transaction report is filed with the
Answer: Department of the Treasury