Bank Secrecy Act - BSA
Definition of '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 explains 'Bank Secrecy Act - BSA'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 Definitions
Articles Of Interest
-
Handcuffs And Smoking Guns: The Criminal Elements Of Wall Street
From godfathers to perps, familiarize yourself with the "criminal elements" creeping around Wall Street. -
The Ghouls And Monsters On Wall Street
Learn about some of the creepiest cases of fraud and the characters behind them. -
Top 4 Most Scandalous Insider Trading Debacles
Here we look at some of the landmark incidents of insider trading. -
Defining Illegal Insider Trading
The better you understand why insider trading can be criminal, the better you'll understand how the market works. -
Digging For Profitable Delistings
Deregistration can provide opportunities for savvy investors. We'll show you how to cash in. -
Big Pharma Faces 'Pay For Delay' Lawsuits
Unless you follow the pharmaceutical and biotech sectors, it’s likely that you’ve never heard of pay to delay. Instead of planning to lose nearly all revenue once the drug goes off patent, the ... -
Should You Add A Securities License To Your Qualifications?
Clients love planners who sell securities, but a securities license takes a lot of work. Learn if the stress and study are worth it. -
How To Report A Tax Cheat
If you report a tax evader to the IRS, you could be eligible for a reward. -
GAAP And The IFRS Standards Convergence Efforts In 3 Substantial Areas
Understand the specific steps that have been taken in hopes of converging the GAAP and the IFRS accounting standards, despite the philosophically and culturally based methodological differences ... -
How Much Will Your Taxes Rise Based On Your Salary?
Find out how high your taxes will rise this year.
Free Annual Reports