Posted June 30, 2017
On June 28, 2017, the House Financial Services Subcommittee on Financial Institutions and Consumer Credit held a hearing entitled “Examining the BSA/AML Regulatory Compliance Regime”.
The federal government’s primary weapon to fight money laundering is the Currency and Foreign Transactions Reporting Act of 1970, better known as the Bank Secrecy Act (BSA). The BSA requires U.S. financial institutions and U.S. – domiciled foreign banks to assist government agencies in their efforts to detect and prevent money laundering and terrorist financing. The BSA requires financial institutions to maintain records of purchases of negotiable instruments, file reports of cash transactions exceeding $10,000 (daily aggregate amount) by means of a Currency Transaction Reports (CTRs), and to report suspicious activity that signify money laundering, tax evasion, or other criminal activities by filing Suspicious Activity Reports (SARs).
This hearing examined BSA compliance challenges facing financial institutions, including compliance trends, the effectiveness of current reporting requirements, and opportunities to improve and enhance the federal government’s ability to combat money laundering and terrorist financing.