Federal Regulations

RCD_FedReg_BSAAML

BSA AML Compliance

Since 1970, Congress has enacted multiple measures to hinder criminal money laundering. At the foundation of it all is the Bank Secrecy Act (BSA), which requires traditional banks, credit unions and thrifts, as well as non-bank financial institutions, securities dealers and money services businesses, to perform anti-money laundering checks and to keep specific records of events that could signal the occurrence of money laundering.

What is BSA AML Compliance? 

The Financial Crimes Enforcement Network (FinCEN) is the administrator of BSA. Over the years, BSA has been strengthened through subsequent anti-money laundering (AML) laws. This includes parts of USA PATRIOT Act compliance, which focus on money laundering in the form of terrorist financing.

AML BSA compliance demands strong risk assessment and control of activities typically associated with money laundering. BSA AML regulations require financial institutions to record and/or report on cash purchases of negotiable instruments, cash transactions exceeding $10,000 and suspicious activity that might indicate money laundering, tax evasion or other crimes. Failure to perform necessary BSA audits risks reputational damage and civil monetary penalties. 

Establish a BSA AML Compliance Program 

The primary way financial institutions report is by creating “paper trails” and implementing superior reporting and record-keeping capabilities to ensure the appropriate information is being collected for all transactions. BSA/AML regulations require financial institutions to:

  • Keep records of cash purchases of negotiable instruments
  • File reports of cash transactions above $10,000
  • Report suspicious activity that might signify money laundering, tax evasion or other criminal activities

Leveraging BSA AML software can help ensure your compliance. 

Contact CSI for Your BSA Audit Program Needs 

With its enhanced documentation features and record-keeping and retention component, CSI's BSA AML Audit tool and WatchDOG® Wire will not only automate your wire process, but also help your institution stay compliant. If you need a more robust AML risk assessment, CSI will perform an on-site review of your institution’s BSA AML policy.

Find out more about how CSI Regulatory Compliance can help your financial institution assess risk and meet federal regulations. Complete our short online form today.

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