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Definition The Bank Secrecy Act (BSA), also known as the Currency and Foreign Transactions Reporting Act, was enacted in 1970 to combat money laundering and other financial crimes. This legislation requires financial institutions to assist government agencies in detecting and preventing money laundering, fraud and other illicit financial activities. Components of the BSA The BSA includes several key components that financial institutions must adhere to: Reporting Requirements: Financial institutions must file Currency Transaction Reports (CTRs) for transactions exceeding $10,000 and Suspicious Activity Reports (SARs) when they suspect illicit activities.

Definition The Patriot Act Title III, officially known as the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, was enacted to strengthen the United States’ ability to combat money laundering and terrorism financing. Its main goal is to safeguard the financial system from being exploited for illicit purposes. Key Components Anti-Money Laundering (AML) Provisions: Title III mandates that financial institutions develop and implement AML programs to detect suspicious activities.