Combating Money Laundering and Terrorist Financing:
Bank Secrecy Act (BSA) and USA PATRIOT Act Regulations
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.
Procedures for Monitoring BSA Compliance - 12 CFR 21.21
requires every national bank to have a written, board approved program that is
reasonably designed to assure and monitor compliance with the BSA. The program
must, at a minimum: 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
USA PATRIOT Act Regulations - The following OCC issuances transmit the various provisions of the USA PATRIOT Act:
Links to BSA Related Statutes
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."
Additional Guidance
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