Bank Secrecy Act of 1970

Citation: Bank Security Act (1970).

Overview
The Bank Security Act (BSA), enacted by Congress in 1970, authorizes the Secretary of the Treasury to issue regulations requiring financial institutions to retain records and file reports useful in criminal, tax, and regulatory investigations. Following the September 11, 2001, terrorist attacks, Congress passed the USA PATRIOT Act, which, among other things, amended the BSA to expand the number of industries subject to BSA regulation and required financial institutions to establish proactive anti-money laundering programs to combat terrorist financing.6 In addition, the USA PATRIOT Act expanded reporting requirements and allowed the records and reports collected under the BSA to be used in the conduct of intelligence or counterintelligence activities to protect against international terrorism.