What does the acronym BSA refer to in banking?

The acronym BSA in banking stands for the Bank Secrecy Act. This legislation was enacted in 1970 with the primary goal of preventing money laundering and other financial crimes by requiring financial institutions to report certain transactions that could involve illicit activities. The act mandates that banks and other financial entities maintain comprehensive records and file reports for large cash transactions and suspicious activities. Compliance with the BSA is vital for banks to help combat criminal financing and protect the integrity of the financial system. Understanding the significance of the Bank Secrecy Act is crucial for those working in banking and finance, as it shapes operational procedures and regulatory requirements.