BSA/AML
Bank Secrecy Act / Anti-Money Laundering
The US legal framework requiring financial institutions to detect, prevent, and report money laundering and other financial crime.
The Bank Secrecy Act (BSA) is the foundational US anti-money laundering law. Together with its implementing regulations (31 CFR Chapter X), it requires financial institutions — including banks, money services businesses, and many crypto companies — to maintain a written AML program, monitor for suspicious activity, and file reports with FinCEN.
A compliant BSA/AML program rests on five pillars: a designated BSA/AML compliance officer, written policies and procedures, ongoing employee training, independent testing of the program, and risk-based customer due diligence. Examiners expect each pillar to be documented and demonstrably operating.
For crypto and fintech businesses, the practical work is mapping which BSA obligations apply to your products (money transmission, custody, exchange) and building the monitoring, recordkeeping, and reporting workflows that satisfy them.
This glossary entry is educational and does not constitute legal advice. Always consult qualified legal counsel for jurisdiction-specific guidance.