What is a ​​Bank Secrecy Act (BSA)?

The Bank Secrecy Act helps prevent money laundering by requiring banks and other financial institutions to disclose certain records, such as currency transaction statements and the economic history of accounts. When account holders of banks engage in transactions involving amounts over $10,000, documentation and verification become a pressing need. This allows authorities to detect and prevent money laundering.

The bank secrecy act does not require that all transactions be recorded. Any person, firm, corporation, partnership, association, trust, or estate may be subject to the regulation. The Internal Revenue Service only requires that an individual submit Form 8300 if they receive more than $10,000 in cash from a single purchase. This could be the result of a single transaction or a series of linked transactions.

The bank secrecy act requires submitting Form 8300 to the relevant authorities no later than 15 days after a cash transaction is made. This prerequisite applies to any portion of the monetary transaction in the United States, its possessions, or territories. However, this law includes several exclusions, including government departments or agencies and corporations listed on major North American exchanges.

The Bank Secrecy Act (BSA) has effectively combated illegal behavior, but there is criticism that it does not have specific rules about what constitutes a 'suspect transaction.' Law enforcement authorities can access this information without a court order.

The attractiveness of cryptocurrencies has led to a debate about whether and how companies dealing with transactions using cryptocurrencies should conform with the Bank Secrecy Act (BSA).

For some, the amount of confidentiality that virtual, encoded transactions accompany is the most likeable aspect of cryptocurrencies. Regrettably, on the flip side of the coin, the ability to perform untraceable transactions and keep crypto coins in "wallets" rather than banks has made virtual currency an appealing tool for criminals and launderers to carry out unlawful operations.

The use of cryptocurrencies for illegal activities has resulted in the federal government taking steps to provide greater control and visibility over bitcoin transactions. Companies and individuals operating in legal grey areas surrounding cryptocurrency may be unclear about their obligations to submit data to authorities. In these cases, it is advisable to seek the counsel of a white-collar defense attorney with expertise in virtual currency law. As laws governing cryptocurrency are subject to change, an attorney with both technical and legal knowledge of digital currencies can provide the best guidance in navigating these complex issues.