CIP/BSA
Bank Secrecy Act
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The Bank Secrecy Act of 1970 (or BSA, or otherwise known as the Currency and Foreign Transactions Reporting Act) requires U.S.A. financial institutions to assist U.S. government agencies to detect and prevent money laundering. Specifically, the act requires financial institutions to keep records of cash purchases of negotiable instruments, file reports of cash transactions exceeding $10,000 (daily aggregate amount), and to report suspicious activity that might signify money laundering, tax evasion, or other criminal activities. It was passed by the Congress of the United States in 1970. The BSA is sometimes referred to as an "anti-money laundering" law ("AML") or jointly as “BSA/AML”. Several anti-money laundering acts, including provisions in title III of the USA PATRIOT Act, have been enacted up to the present to amend the BSA. (See 31 USC 5311-5330 and 31 CFR 103.)
Bank Secrecy Act (BSA) Statute
- 31 U.S.C. 5311-5314e
- 5316-5330
- 5331
- 5332e
- 12 U.S.C. 1829b
- 12 U.S.C. 1951-1959e
- Federal Crime of Money Laundering - Title 18, U.S. Code, Crimes and Criminal Procedure
- Federal Crime of Operating an Unlicensed or Unregistered Money Transmitting Business - Title 18 U.S. Code, Crimes and Criminal Procedure
The Federal Register contains final regulations issued after the date of codification, as well as the Notices of Proposed Rulemaking. *
**From The: Financial Crimes Enforcement Network United States The Department of Treasury
*Regulatory/Statute and Regulations Codified Bank Secrecy Act § 103.120 31 CFR Ch. I (7–1–06 Edition)http://www.fincen.gov/reg_statutes.html
(i) /Customer information required/—(A) /In general. /The CIP must contain procedures for opening an account that specify the identifying information
that will be obtained from each customer.* *
*"(ii) Customer does not include: (A) A financial institution regulated by a Federal functional regulator or a bank regulated by a state bank regulator*"
Except as permitted by paragraphs (b)(2)(i)(B) and (C) of this section, the bank must obtain, at a minimum,
the following information from the customer prior to opening an account: (/iii/) For a person other than an individual (such as a corporation, partnership,
or trust), a principal place of business, local office, or other physical location; and (/4/) Identification number, which shall be: (/i/) For a U.S. person, a taxpayer identification
number; (A) /Verification through documents. /For a bank relying on documents, the CIP must contain procedures that set forth the documents that the bank will
use. These documents may include: (/1/) For an individual, unexpired government-issued identification evidencing nationality or residence and bearing
a photograph or similar safeguard, such as a driver’s license or passport; and(/2/) For a person other than an individual (such as a corporation, partnership,
or trust), documents showing the existence of the entity, such as certified articles of incorporation, a government-issued business license, a
partnership agreement, or trust instrument. (B) /Verification through non-documentary methods. /For a bank relying on non-documentary methods, the CIP
must contain procedures that describe the non-documentary methods the bank will use. (/1/) These methods may include contacting a customer; independently
verifying the customer’s identity through the comparison of information provided by the customer with information obtained from a consumer reporting
agency, public database, or other source; checking references with other financial institutions; and obtaining a financial statement.
Patriot Act