What are the primary components of the Bank Secrecy Act?

The primary components of the Bank Secrecy Act (BSA) focus on the prevention of money laundering and the detection of suspicious financial activities. The correct response includes customer due diligence, suspicious activity reporting, and recordkeeping, all of which are integral to ensuring that financial institutions can effectively monitor and report potentially illicit activities.

Customer due diligence involves collecting and analyzing sufficient information about customers to understand their activities and assess the risk they may pose to the financial institution. This process is critical for identifying suspicious behavior early on.

Suspicious activity reporting is a requirement for financial institutions to report any transactions that they deem suspicious or indicative of money laundering or other financial crimes. This reporting requirement is key to the enforcement of the BSA as it helps authorities identify patterns of illegal activity.

Recordkeeping is another essential component, as the BSA mandates that financial institutions maintain detailed records of transactions and customer interactions. This documentation is vital for regulatory compliance and for future investigations into any potential financial crimes.

The other options listed do not align with the core goals of the BSA. Loan estimates and consumer privacy, discrimination policies, financial disclosures, and information security programs pertain to other regulatory frameworks but do not capture the specific focus of the Bank Secrecy Act.