Bank Secrecy Act compliance

• Date: June 05, 2011
• Source: http://www.irs.gov

Congress passed the Bank Secrecy Act in 1970 as the first laws to fight money laundering in the United States. The BSA requires businesses to keep records and file reports that are determined to have a high degree of usefulness in criminal, tax, and regulatory matters. The documents filed by businesses under the BSA requirements are heavily used by law enforcement agencies, both domestic and international to identify, detect and deter money laundering whether it is in furtherance of a criminal enterprise, terrorism, tax evasion or other unlawful activity.

Purpose

This subpart is issued to assure that all national banks establish and maintain procedures reasonably designed to assure and monitor their compliance with the requirements of subchapter II of chapter 53 of title 31, United States Code, and the implementing regulations promulgated there under by the Department of Treasury at 31 CFR part 103.

Compliance procedures

On or before April 27, 1987, each bank shall develop and provide for the continued administration of a program reasonably designed to assure and monitor compliance with the recordkeeping and reporting requirements set forth in subchapter II of chapter 53 of title 31, United States Code, and the implementing regulations promulgated there under by the Department of Treasury at 31 CFR part 103. The compliance program shall be reduced to writing, approved by the board of directors and noted in the minutes.

Contents of compliance program

The compliance program shall, at a minimum

• Provide for a system of internal controls to assure ongoing compliance;
• Provide for independent testing for compliance to be conducted by bank personnel or by an outside party;
• Designate an individual or individuals responsible for coordinating and monitoring day-to-day compliance; and
• Provide training for appropriate personnel.

(Approved by the Office of Management and Budget under control number 1557-0180)

 Effective Date Jan. 27, 1987

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