Combating Money Laundering and Terrorist Financing:
Bank Secrecy Act (BSA) and Related Regulations

1. provide for a system of internal controls to assure ongoing compliance;
2. provide for independent testing for compliance;
3. designate an individual responsible for coordinating and monitoring day-to-day compliance; and
4. provide training for appropriate personnel. In addition, the implementing regulation for section 326 of the PATRIOT Act requires that every bank adopt a customer identification program identification program as part of its BSA compliance program.

Reports of Suspicious Activities - 12 CFR 21.11 requires every national bank to file a Suspicious Activity Report (SAR) when they detect certain known or suspected violations of federal law or suspicious transactions related to a money laundering activity or a violation of the BSA. A SAR filing is required for any potential crimes:

1. involving insider abuse regardless of the dollar amount;
2. where there is an identifiable suspect and the transaction involves $5,000 or more; and
3. where there is no identifiable suspect and the transaction involves $25,000 or more. A SAR filing also is required in the case of suspicious activity that is indicative of potential money laundering or BSA violations and the transaction involves $5,000 or more.

Links to BSA Related Statutes

• Financial Record Keeping and Reporting of Currency and Foreign Transactions - 31 CFR 103
• Foreign Assets Control Regulations (OFAC) 12 CFR 500
• Bank Secrecy Act - 31 USC 5311 - 5330
• USA PATRIOT Act

Institutions of Primary Laundering Concerns - Section 5318A of the Bank Secrecy Act, as added by section 311 of the USA PATRIOT Act, authorizes the Secretary of the Treasury to designate a foreign jurisdiction, institution, class of transaction, or type of account as being of "primary money-laundering concern," and to impose one or more of five "special measures."

• Proposed Rules Imposing Special Measures Against Infobank and First Merchant Bank OSH Ltd - Determined to be financial institutions of primary money laundering concern
• Designation of Commercial Bank of Syria as a Financial Institution of Primary Money Laundering Concern - proposed rule imposing special measures against Commercial Bank of Syria
• Imposition of Special Measures Against Burma, Myanmar Mayflower Bank, and Asia Wealth Bank
• Revocation of Designation of Ukraine as Primary Money-Laundering Concern - proposed rule imposing special measures against the country of Nauru
• Designation of Nauru and Ukraine as Primary Money Laundering Concerns

Additional Guidance

• OCC Bulletin 2004-1 - Bank Secrecy Act/Anti-Money Laundering BSA/AML): Notice of Expiration of Conditional Exception to BSA Regulations Related to Order for Transmittals of Funds by Financial Institutions
• OCC Bulletin 2003-22 - Final Rule-Section 326- Customer Identification Program
• OCC Bulletin 2002-42 - Final Rule-Section 314 - Special Information Sharing Procedures to Deter Money Laundering and Terrorist Activity
• OCC Bulletin 2002-41 - Final Rule-Section 313 and 319(b) Anti-Money Laundering Requirements for Foreign Correspondent Banks
• OCC Bulletin 2002-37 - Interim Final Rule-Section 312- Special Due-Diligence Programs for Certain Foreign Accounts