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Youverify’s Global Resource

Youverify’s Compliance Solutions in

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United States of America

Customer Identity Verification

Take the first step of fraud prevention, Verify the identity of your customers in compliance with local and global laws.

AdverseMedia Check

Stay ahead of potentially risky customers with our AI powered risk classification tool

PEP and Sanction Check

Verify your customers against Global sanction and PEP lists to identify potentially risky or suspicious customers.

Business Verification

Verify the legal existence and ultimate beneficial owners of businesses in over 40 countries.

AML verification and Transaction monitoring solutions

Detect suspicious transactions and flag them before they cause harm. Level up your anti money laundry compliance with our AI powered transaction monitoring and anti-money laundering solution.

Direct Reporting

Export data from suspicious transactions potentially indicative of money laundering, fraud, and other financial crimes and report directly to regulators.

AML/CFT Supervisors in United States of America

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Financial Crime Enforcement Network (FinCEN)

Financial Crime Enforcement Network (FinCEN) is the primary regulatory authority in the United States responsible for combating money laundering and counter-terrorist financing. As a bureau of the Treasury Department, FinCEN's mission is to safeguard the integrity of the financial system by acquiring, analyzing, and disseminating financial information, as well as utilizing financial authorities to enhance national security. To achieve its objectives, FinCEN collects and maintains financial activity data, shares the data with law enforcement agencies for investigative purposes, and promotes international cooperation with foreign counterparts and organizations.

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The Office of Foreign Assets Control (OFAC)

The Office of Foreign Assets Control (OFAC) is responsible for implementing economic and trade sanctions based on U.S. foreign policy and national security objectives. OFAC targets designated foreign governments, regimes, terrorists, international drug smugglers, individuals involved in weapons proliferation, and other entities that pose threats to the national security, foreign policy, or economy of the United States. These sanctions serve to restrict certain transactions and impose asset freezes on designated individuals and entities, aligning with the U.S. government's efforts to address global security concerns and maintain international stability.

AML/CFT reporting obligations in the United States​

The Bank Secrecy Act and the USA Patriot Act are the two main AML Regulations.

 

The Bank Secrecy Act (BSA)

The Bank Secrecy Act (BSA) is a comprehensive and robust anti-money laundering and counter-terrorism funding (AML/CFT) legislation in the United States. It holds the distinction of being the initial and most stringent law of its kind. Under the BSA, the Secretary of the Treasury is authorized to establish regulations mandating financial institutions and other firms to implement measures against financial fraud. These measures include the implementation of anti-money laundering (AML) programs that encompass adequate consumer due diligence (CDD), monitoring, reporting, and record-keeping practices.

 

The USA Patriot Act

The USA Patriot Act, short for "Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism," was enacted in response to the terrorist attacks of September 11, 2001. Its primary objective is to prevent and prosecute terrorist acts within the United States and globally, enhance the investigative capabilities of law enforcement agencies, and achieve various other goals. This act expands the scope of the Bank Secrecy Act (BSA) and grants broader surveillance authority to law enforcement agencies. Through these measures, the USA Patriot Act aims to bolster national security efforts and safeguard against terrorist threats.

How to Comply with the BSA and USA Patriot Acts

Under the Bank Secrecy Act (BSA) and associated anti-money laundering laws, banks and other financial institutions are required to:

 

  • Implement a system of internal controls to ensure ongoing compliance. This includes conducting independent testing for compliance, designating a responsible individual to oversee and monitor day-to-day compliance, and providing appropriate personnel with training.
  • Establish effective systems for customer due diligence (CDD) and implement monitoring programs to detect and mitigate potential money laundering risks.
  • Conduct screenings against government lists, such as the Office of Foreign Assets Control (OFAC) list, to identify and prevent transactions involving sanctioned individuals or entities.
  • Develop robust processes for monitoring and reporting suspicious activities that may indicate criminal behavior, such as money laundering or tax evasion.
  • Design and implement risk-based anti-money laundering programs that consider the specific risks faced by the institution and adopt appropriate measures to mitigate those risks.
  • Implement Customer Due Diligence (CDD) and Customer Identification Program (CIP) programs to verify the identity of customers and assess the risks associated with their transactions.
  • Maintain records of cash purchases of negotiable instruments.
  • File reports for cash transactions exceeding $10,000 in aggregate amount on a daily basis.
  • Report any suspicious activity that raises concerns about potential criminal activity, such as money laundering or tax evasion.

AML/CFT Reporting Obligations in United States of America

Financial institutions in United States of America have various reporting obligations to comply with AML/CFT regulations. Key reporting requirements include:

Currency Transaction Reports (CTR):

Financial institutions must file electronic reports, known as FinCEN Form 112 (formerly Form 104), with the Financial Crimes Enforcement Network (FinCEN) for any cash transactions exceeding $10,000 within one business day, regardless of whether the amount is from a single transaction or multiple transactions.

Suspicious Activity Reports (SAR):

Financial institutions are required to file SARs with FinCEN if they suspect or have reasonable grounds to believe that a transaction involves funds derived from illegal activities, is intended to evade reporting requirements, or indicates potential money laundering or other criminal activities such as wire transfer fraud or cheque fraud.

Cash Purchases of $3,000-$10,000:

Money Services Businesses (MSBs) that sell money orders or traveler's cheques must record cash purchases between $3,000 and $10,000, inclusive. If multiple cash purchases of monetary instruments totaling $3,000 or more are made at the same time or within one business day, they should be treated as a single purchase and recorded accordingly.

Money Transfers of $3,000 or more:

MSBs providing money transfer services must obtain and record specific information for each money transfer of $3,000 or more, regardless of the payment method. These records must be maintained for a period of 5 years from the date of the transaction.

Currency Exchanges of more than $1,000:

Currency exchangers are required to keep records of each exchange involving more than $1,000, whether in domestic or foreign currency. These records should be retained for a period of 5 years from the transaction date.

Foreign Bank Account Reports (FBAR):

U.S. citizens and residents with a financial interest in or authority over foreign bank accounts or foreign financial accounts with an aggregate value of $10,000 or more must file an FBAR with the U.S. Treasury by October 15 each year. The report, identified as FinCEN Form 114 (formerly Treasury Department Form 90-22.1), should be accompanied by reporting the accounts on Schedule B of the Form 1040 tax form.

AML/CFT Report

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Download AML/CFT Report

Empower your organization with knowledge. Whether you're a financial institution, Fintech startup, or any entity operating in the financial sector, this guide is an indispensable resource for maintaining robust AML/CFT protocols. 
Click to download now and fortify your commitment to compliance in the ever-evolving landscape of financial regulations in United States of America. Stay informed. Stay compliant.

How can Youverify Assist?

Youverify offers simple compliance solutions that help you classify customers by risk level, monitor and identify suspicious transactions, and verify customer identity in seconds. 
Using our PEP and sanction list search, you can verify politically exposed or high-risk individuals against various official blacklists, including sanctions, regulatory, law enforcement, and other relevant databases all over the world. 
Leverage our AI powered risk classification to identify potentially risky customers before they do harm, download individual or bulk reports for further analysis, and use our suspicious transaction reporting solution to report risky transactions in real time. 

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