Bank Secrecy Act: Federal Agencies Should Take Action to Further Improve Coordination and Information-Sharing Efforts Page: 15 of 110
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to money laundering and terrorism with law enforcement authorities,
regulatory authorities, and financial institutions. In addition, nonfinancial
institutions also became subject to BSA currency transaction reporting
(CTR) requirements where, in the course of trade or business, the business
receives more than $10,000 in coins or currency in one transaction (or two
or more related transactions).12FinCEN Administers
the BSA Framework,
under which Many
Regulatory Entities
Exercise Delegated
and Independent
Compliance and
Enforcement
AuthoritiesThe objectives of U.S. financial services regulation are pursued by a
complex combination of federal and state government agencies and SROs.
Generally, regulators specialize in the oversight of financial institutions in
the various financial services sectors, which stem largely from the laws
that established these agencies and defined their missions. Under the BSA
regulatory scheme, FinCEN is responsible for the overall administration
and enforcement of BSA and may take enforcement actions, but federal
and state regulators and SROs conduct day-to-day compliance and
enforcement activities. Specifically, with respect to examinations for BSA
compliance, FinCEN delegated its BSA examination authority to the
federal banking regulators, SEC, CFTC, and IRS.13 The federal banking
regulators, SEC, and CFTC also use their independent authorities to
examine entities under their supervision for compliance with applicable
BSA/AML requirements and regulations.14 FinCEN has retained
enforcement authority and may impose civil penalties for violations.'5 In
addition, each of the federal bank regulators also may impose civil money
penalties for significant BSA violations, and have specific authority to
initiate cease and desist proceedings against the entities they supervise for
12Pub. L. No. 107-56 365(a).
1331 C.F.R. 103.56. The regulation delegates examination authority to SEC for securities
broker-dealers and investment companies. The delegation to CFIC pertains to futures
commission merchants, introducing brokers, and commodity trading advisors.
14See, e.g., 12 U.S.C. 1818(s) (requiring federal banking agencies to promulgate BSA
regulations and conduct BSA examinations), 1786(q) (applying the same requirement to
NCUA). See Procedures for Monitoring Bank Secrecy Act (BSA) Compliance, 12 C.F.R.
208.63 (Federal Reserve), 12 C.F.R. 326, subpart B, (FDIC), 12 C.F.R. 748.2, (NCUA), 12.
C.F.R., (OCC), 12 C.F.R. 563.177 (OTS). SEC and CFIC have authority to examine the
entities they regulate for compliance with the respective agency's regulations, and those
regulations require compliance with BSA and its implementing regulations.
'5The regulations authorize the Assistant Secretary of Enforcement in Treasury to impose
civil penalties for BSA violations. 31 C.F.R. 103.57.GAO-09-227 Bank Secrecy Act
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United States. Government Accountability Office. Bank Secrecy Act: Federal Agencies Should Take Action to Further Improve Coordination and Information-Sharing Efforts, report, February 12, 2009; Washington D.C.. (https://digital.library.unt.edu/ark:/67531/metadc302246/m1/15/: accessed April 25, 2024), University of North Texas Libraries, UNT Digital Library, https://digital.library.unt.edu; crediting UNT Libraries Government Documents Department.