BSA/AML
Bank Secrecy Act / Anti-Money Laundering
Federal laws requiring financial institutions to detect and prevent money laundering.
What is BSA/AML?
The Bank Secrecy Act (BSA), along with subsequent Anti-Money Laundering (AML) regulations, requires financial institutions to assist government agencies in detecting and preventing money laundering. Administered by the Financial Crimes Enforcement Network (FinCEN), BSA/AML compliance involves customer identification, transaction monitoring, and suspicious activity reporting.
The USA PATRIOT Act expanded BSA requirements to include enhanced due diligence for high-risk accounts and information sharing provisions. Recent updates include the Corporate Transparency Act requiring beneficial ownership reporting and increased focus on cryptocurrency compliance.
Who Needs BSA/AML?
- Banks and credit unions
- Money services businesses (MSBs)
- Broker-dealers and investment advisers
- Casinos and gambling establishments
- Cryptocurrency exchanges and fintech companies
Key Requirements
Core compliance areas for BSA/AML
Customer Identification (CIP)
Verify the identity of customers opening accounts using documentary and non-documentary methods.
Customer Due Diligence (CDD)
Understand customer relationships, beneficial owners, and expected transaction patterns.
Transaction Monitoring
Monitor transactions for suspicious activity patterns indicating potential money laundering.
Suspicious Activity Reports (SARs)
File SARs with FinCEN for transactions suspected of involving illegal activity.
AML Program
Maintain a written AML program with policies, compliance officer, training, and independent testing.
Benefits of BSA/AML Compliance
- Avoid severe regulatory penalties and enforcement actions
- Maintain banking relationships and licenses
- Protect reputation from money laundering associations
- Reduce fraud and financial crime losses
- Meet requirements for operating in financial services
- Build trust with regulators and partners
How PartnerAlly Helps with BSA/AML
Streamline your path to BSA/AML compliance with our AI-powered platform.