Overview

The federal government requires banks and bankers (as well as retailers, professional firms, casinos, and other entities who may deal in large sums of money) to assist them in the prevention and detection of money laundering and terrorism funding. Illegal activities often generate or are conducted in cash; tracking that cash assists law enforcement agencies in their fight against crime. The government, therefore, requires banks to record information about large money transfers of various types and to identify any suspicious individuals or businesses that deal in large amounts of cash or engage in unusual business transactions. 

• A system of internal controls to ensure ongoing compliance
• Independent testing of BSA/AML compliance
• A designated individual responsible for managing BSA/Compliance
• Training of appropriate personnel

See Monitoring High-Risk Accounts for more information.

BSA Penalties

In addition to the penalties for the person that attempts to launder money, there are substantial civil penalties for banks that violate any BSA requirements, even unintentionally. There can also be civil money penalties (fines), as well as criminal penalties (jail sentences) for bank associates, officers, directors, or attorneys who willfully violate the provisions of BSA.