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== Citation == '''Bank Secrecy Act of 1970''' ('''BSA''') (also called the '''Currency and Foreign Transactions Reporting Act'''), Pub. L. No. 91-5081 (1970), ''codified at'' 12 U.S.C. §§1829b and 1951-59, and 31 U.S.C. §§ 5311-5330; ''see also'' 31 C.F.R. §103 == Overview == Enacted by [[U.S. Congress|Congress]] in 1970, the Act authorizes the [[Secretary of the Treasury]] to issue regulations requiring [[financial institution]]s to retain records and file reports that the Secretary determines have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, or in [[intelligence]] or [[counterintelligence]] matters to protect against international [[terrorism]]. The authority of the Secretary to administer the BSA has been delegated to the Director of [[FinCEN]]. == Amendments to the BSA == === Annunzio-Wylie Anti-Money Laundering Act of 1992 === The BSA was amended by the Annunzio-Wylie Anti-Money Laundering Act of 1992<ref>Pub. L. 102-550.</ref> Annunzio-Wylie authorizes the [[Secretary of the Treasury]] and the Board of Governors of the Federal Reserve System (the Board) to jointly issue regulations requiring insured banks to maintain records of domestic [[funds transfer]]s.<ref>12 U.S.C. §1829b(b)(2) (2006). Treasury has independent authority to issue regulations requiring non-bank [[financial institution]]s to maintain records of domestic transmittals of funds.</ref> In addition, Annunzio-Wylie authorizes the Secretary and the Board to jointly issue regulations requiring insured banks and certain non-bank financial institutions to maintain records of international [[funds transfer]]s and transmittals of funds.<ref>''Id.'' §1829b(b)(3).</ref> Annunzio-Wylie requires the Secretary and the Board, in issuing regulations for international [[funds transfer]]s and transmittals of funds, to consider the usefulness of the records in criminal, tax, or regulatory investigations or proceedings, and the effect of the regulations on the cost and efficiency of the payments system.<ref>''Id.''</ref> === USA PATRIOT Act of 2001 === Following the September 11, 2001, [[terrorist attack]]s, [[U.S. Congress|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 institution]]s to establish [[proactive]] anti-[[money laundering]] programs to combat [[terrorist]] financing.<ref>USA PATRIOT Act, Pub. L. No. 107-56, 115 Stat. 272 (Oct. 26, 2001).</ref> 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]]. === Intelligence Reform and Terrorism Prevention Act of 2004 === The [[Intelligence Reform and Terrorism Prevention Act of 2004]]<ref>Pub. L. No. 108-458.</ref> amended the BSA to require the Secretary to prescribe regulations {{Quote|requiring such financial institutions as the Secretary determines to be appropriate to report to the Financial Crimes Enforcement Network certain cross-border electronic transmittals of funds, if the Secretary determines that reporting of such transmittals is reasonably necessary to conduct the efforts of the Secretary against money laundering and terrorist financing.}} == Types of reports == The BSA regulations require all [[financial institution]]s to submit five types of reports to the government. #'''[[FinCEN]] Form 104 [[Currency Transaction Report]] ([[CTR]])''': A [[CTR]] must be filed for each deposit, withdrawal, exchange of currency, or other payment or transfer, by, through or to a [[financial institution]], which involves a transaction in currency of more than $10,000. Multiple currency transactions must be treated as a single transaction if the [[financial institution]] has knowledge that: (a) they are conducted by or on behalf of the same person; and (b) they result in cash received or disbursed by the [[financial institution]] of more than $10,000. (31 C.F.R. 103.22) #'''FinCEN Form 105 Report of International Transportation of Currency or Monetary Instruments (CMIR)''': Each person (including a bank) who physically transports, mails or ships, or causes to be physically transported, mailed, shipped or received, currency, traveler’s checks, and certain other monetary instruments in an aggregate amount exceeding $10,000 into or out of the United States must file a CMIR. #'''Department of the Treasury Form 90-22.1 Report of Foreign Bank and Financial Accounts (FBAR)''': Each person (including a bank) subject to the [[jurisdiction]] of the United States having an interest in, signature or other authority over, one or more bank, securities, or other financial accounts in a foreign country must file an FBAR if the aggregate value of such accounts at any point in a calendar year exceeds $5,000. (31 C.F.R. 103.24). #'''Treasury Department Form 90-22.47 and OCC Form 8010-9, 8010-1 [[Suspicious Activity Report]] ([[SAR]])''': Banks must file a [[SAR]] for any suspicious transaction relevant to a possible violation of law or regulation. (31 C.F.R. 103.18 − formerly 31 C.F.R. 103.21) (12 C.F.R. 12.11). #'''"Designation of Exempt Person" FinCEN Form 110''': Banks must file this form to designate an exempt customer for the purpose of [[CTR]] reporting under the [[BSA]] (31 C.F.R. 103.22(d)(3)(i)). In addition, banks use this form biennially (every two years) to renew exemptions for eligible non-listed business and payroll customers. (31 C.F.R. 103.22(d)(5)(i)) It also requires any business receiving one or more related cash payments totalling $5,000 or more to file form 8300.<ref>[http://www.irs.gov/businesses/small/article/0,,id=148857,00.html IRS article].</ref> == Affected transactions == === Currency Transaction Report (CTR) === Cash transactions in excess of $10,000 during the same business day. The amount over $10,000 can be either from one transaction or a combination of cash transactions. Filed with the [[Internal Revenue Service]]. === Monetary Instrument Log (MIL) === Cash purchases of monetary instruments, such as money orders, cashier's checks and travelers checks, totaling from $3,000 to $10,000, inclusive. This form is required to be kept on record at the [[financial institution]], and produced at the request of examiners or audit to verify compliance. A [[financial institution]] must maintain a Monetary Instrument Log for five years. === Suspicious Activity Report (SAR) === Any cash transaction where the customer seems to be trying to avoid BSA reporting requirements (e.g., [[CTR]], MIL). A [[SAR]] must also be filed if the customer's actions indicate that s/he is [[money laundering|laundering money]] or otherwise violating federal criminal law. The customer must not know that a [[SAR]] is being filed. These reports are filed with the [[Financial Crimes Enforcement Network]] ([[FinCEN]]). == Sanctions == There are stiff penalties for individuals and institutions that fail to file [[CTR]]s, MILs, or [[SAR]]s. There are also penalties for those that disclose to its clients that it has filed a [[SAR]] about a client. Penalties include extremely high fines and long prison sentences if found guilty. == References == <references /> == See also == * [[Bank Secrecy Act Advisory Group]] {{Wikipedia|Bank Security Act of 1970}} [[Category:Legislation]] [[Category:Legislation-U.S.-Financial]] [[Category:Legislation-U.S.-Federal]] [[Category:1970]]
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