Bank Secrecy Act - BSA
Barron's Banking Dictionary:
Top
Bank Secrecy Act
Federal law enacted in 1970, intended to discourage the use of currency in illegal transactions, requiring banks to microfilm all checks written for amounts above $100, and report all cash deposits, withdrawals, or transfers of $10,000 to the Internal Revenue Service. International transactions are reportable to the U.S. Customs Department. Banks are required to fill out a Currency Transaction Report within 15 days of the transaction date to avoid having to pay stiff penalties. Amendments to the Bank Secrecy Act (the USA PATRIOT Act of 2001) require individuals opening a deposit or loan account to provide some proof of identity, such as a driver's license or passport. The new procedures are designed to deter money laundering or misuse of personal financial information through identity theft or account fraud. See also Money Laundering.
Related Videos:
Top
Bank Secrecy Act - BSA
Investopedia Financial Dictionary:
Top
Bank Secrecy Act - BSA
Government legislation that was created in 1970 to prevent financial institutions from being used as tools by criminals to hide or launder their ill-gotten gains. This is achieved by requiring banks and other financial institution to provide documentation (such as currency transaction reports) whenever clients deal with transactions that involve substantial sums of money ($10,000 or more) that appear to be suspicious. This way, authorities have the ability to easily reconstruct the entire situation.
Also known as "Currency and Foreign Transactions Reporting Act".
Investopedia Says:
This is not to say that every transaction exceeding $10,000 is documented. The BSA has a list of exceptions that do not require documentation. Government departments/agencies and companies listed on the major North American exchanges are two examples of exempt parties.
While this act is useful in fighting criminal activity, as with all matters of privacy, the act is somewhat controversial as there are very few guidelines defining what is considered suspicious and law enforcement agencies do not need to get a court order to gain access to the information.
Related Links:
From godfathers to perps, familiarize yourself with the "criminal elements" creeping around Wall Street. Handcuffs And Smoking Guns: The Criminal Elements Of Wall Street
Learn about some of the creepiest cases of fraud and the characters behind them. The Ghouls And Monsters On Wall Street
Post a question - any question - to the WikiAnswers community:
Copyrights:
Barron's Banking Dictionary
Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.
Read more
