Financial Crime World

Banks Face Tightened Compliance Rules Under BSA and USA Patriot Act

Washington D.C. - The Bank Secrecy Act (BSA) and related anti-money laundering laws have placed financial institutions under increased scrutiny, requiring banks to implement robust compliance programs to prevent illicit activities.

Compliance Requirements Under the BSA

The BSA requires banks to:

  • Establish effective customer due diligence systems and monitoring programs
  • Screen against Office of Foreign Assets Control (OFAC) and other government lists
  • Develop risk-based anti-money laundering programs
  • Keep records of cash purchases of negotiable instruments
  • File reports of cash transactions exceeding $10,000
  • Report suspicious activity that may signal criminal activity

Enhanced Requirements Under the USA Patriot Act

The USA Patriot Act has further enhanced these requirements, mandating:

  • The filing of currency transaction reports (CTRs) for cash transactions exceeding $10,000 in one business day
  • The filing of suspicious activity reports (SARs) if unusual or potentially illegal activities are detected

AML/CTF Reporting Obligations

Financial institutions must submit:

  • CTRs electronically with the Financial Crimes Enforcement Network (FinCEN) within 15 calendar days after the date of the transaction
  • SARs with FinCEN no later than 30 days after initial detection of suspicious activity

In addition, banks must keep records of:

  • Cash purchases involving $3,000-$10,000, inclusive
  • Specific information for each money transfer exceeding $3,000
  • Currency exchanges totaling more than $1,000

MemberCheck Offers Compliance Solutions

To help financial institutions comply with these complex regulations, MemberCheck provides a secure and simple solution for:

  • Scanning against politically exposed or high-risk individuals
  • Checking names against sanction, regulatory, law enforcement, and other official lists
  • Minimizing false matches through sophisticated scan filters and due diligence workflow

By using MemberCheck’s services, financial institutions can:

  • Access customer details whenever needed
  • Download reports for further investigation or auditing purposes
  • Demonstrate compliance with AML program requirements

Request a Demo Today

For more information on how MemberCheck can assist your institution in meeting its AML obligations, request a demo today.