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Bank Secrecy Act (From Banking Crimes: Fraud, Money Laundering, and Embezzlement, P 6.1-6.104, 1988, by John K Villa -- See NCJ-117693)

NCJ Number
117699
Author(s)
J K Villa
Date Published
1988
Length
104 pages
Annotation
The Federal Bank Secrecy Act was passed in 1970 to address issues related to the use and abuse of foreign bank accounts to launder proceeds from illegal operations, to evade taxes, and otherwise to facilitate the conduct of illegal activity.
Abstract
Title I of the law requires financial institutions and securities brokers and dealers to keep extensive records of the transactions and accounts of their customers. Title II requires institutions and individuals to report to the government certain transactions that are of particular interest to regulatory and law enforcement agencies. The law affects four major areas of financial reporting and recordkeeping. It permits the United States Treasury Department to require financial institutions to obtain information from their customers and to retain copies of signature cards, ledgers, transaction records, and copies of checks. It's most controversial provision obligates all financial institutions to report all currency transactions over $10,000. Another provision covers reporting regarding monetary instruments over $10,000 transported into or outside the United States. Finally, the transactions of United States citizens with foreign financial institutions must be reported. Penalties for violations include civil and criminal fines, civil forfeitures up to the amount of the transaction or incident, and imprisonment. Footnotes.