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.