What is the primary focus of the Bank Secrecy Act (BSA)?

The primary focus of the Bank Secrecy Act (BSA) is to prevent money laundering and financial crimes. The BSA serves as a crucial framework for the United States' anti-money laundering (AML) efforts and establishes requirements for financial institutions to report suspicious activities that might indicate money laundering or other illegal financial activities. This is accomplished through a combination of measures, including the requirement for banks and other financial institutions to keep records and file reports that could help detect and prevent complex financial crimes.

Through its regulatory expectations, the BSA helps law enforcement agencies identify and investigate potential criminal activities, thus contributing to national and global security. The act mandates the filing of Currency Transaction Reports (CTRs) for cash transactions over a certain threshold, along with Suspicious Activity Reports (SARs) for any transactions that appear dubious. In essence, the BSA tackles the detection and deterrence of money laundering practices, making it a key pillar in the fight against financial crime.