Bank Secrecy Act and Anti-Money Laundering
History of Anti-Money Laundering
1970 Bank Secrecy Act
- Required banks to report cash transactions over $10,000 via the Currency Transaction Report (CTR).
1986 Money Laundering Control Act
- Criminalized the act of money laundering;
- Prohibited structuring transactions to evade CTR filings;
- Introduced civil and criminal forfeiture for BSA violations.
1988 Money Laundering Prosecution Improvement Act
- Expanded the definition of financial institution to include businesses such as car dealers and real estate closing personnel and required them to file reports on large currency transactions;
- Required the verification of identity of purchasers of monetary instruments over $3,000.
1990 Bank Fraud Prosecution and Taxpayer Recovery Act of 1990 (Crime Control Act)
- Updated the FDIC Statement of Policy issued pursuant to Section 19 of the Federal Deposit Insurance Act that prohibits, without the prior written consent of the FDIC, any person from participating in banking who has been convicted of a crime of dishonesty or breach of trust or money laundering, or who has entered a pretrial diversion in connection with such an offense.
1992 Annunzio-Wylie Money Laundering Suppression Act
- Added Section 8(w) to FDI Act which provides for the revocation of federal deposit insurance of institutions convicted of certain money laundering crimes;
- Required Suspicious Activity Reports and eliminated criminal referrals;
- Required Verification and recordkeeping for wire transfers.
1994 Money Laundering Suppression Act
- Required banking agencies to develop anti-money laundering examination procedures;
- Streamlined CTR exemption process.
1998 Money Laundering and Financial Crimes Strategy Act
- Required banking agencies to develop anti-money laundering training for examiners;
- Required Treasury and other agencies to develop a National Money Laundering Strategy;
- Created High Intensity Financial Crime Areas (HIFCAs)
2001 Uniting and Strengthening America by Providing Appropriate Tools to Restrict, Intercept and Obstruct Terrorism Act (USA PATRIOT Act)
- Required government-institution information sharing and provided voluntary sharing among financial institutions regarding possible terrorist activity or money laundering;
- Required establishment of customer identification program;
- Required due diligence program for private banking and foreign correspondent and enhanced due diligence for certain foreign correspondent banks;
anti-money laundering programs for additional financial services