What is the main goal of the Bank Secrecy Act (BSA)?

The primary objective of the Bank Secrecy Act (BSA) is to prevent money laundering and financial fraud. The act requires financial institutions to assist government agencies in detecting and preventing money laundering activities by mandating reports on suspicious transactions and the maintenance of thorough records. These measures are crucial for ensuring the integrity of the financial system and for combating financial crimes. By focusing on the identification and reporting of activities that may involve illicit gains, the BSA plays a vital role in creating a transparent banking environment. This involves an emphasis on compliance, surveillance of unusual transactions, and collaboration between banks and law enforcement agencies, all of which contribute to its main goal of protecting the financial system from misuse.