Overview#Bank Secrecy Act (BSA) of 1970 is an Act of Congress codified in Public Law 91-508 requires Financial Institutions in the United States to assist United States Federal Agency in Anti-Money Laundering.
Specifically, the act requires Financial Institutions to keep records of cash purchases of negotiable instruments, and file reports of cash purchases of these negotiable instruments of more than $10,000 (daily aggregate amount), and to report suspicious activity that might signify money laundering, Tax Evasion, or other criminal activities.
Bank Secrecy Act places a high Regulatory Burden
Bank Secrecy Act requires that Financial Institutions MUST keep records of cash transactions summing to more than $10,000 in one day and report suspicious transactions to the United States federal government. In addition, people coming into the United States from foreign countries (including US citizens) must declare cash or other negotiable instruments they are bringing into the country if the amount exceeds $10,000.
One hidden cost of inflation is that it makes an increasingly large share of cash holdings and transactions subject to Government Surveillance. As an Example, $10,000 in 1970 is equivalent to $65,000 in 2018.
More Information#There might be more information for this subject on one of the following:
- Anti-Money Laundering
- Customer Identification Program
- Financial Industry Regulatory Authority Inc
- USA PATRIOT Act
- [#1] - Bank_Secrecy_Act - based on information obtained 2017-02-11-
- [#2] - Form 8300 and Reporting Cash Payments of Over $10,000 - based on information obtained 2018-01-04-