- The Bank Secrecy Act was passed by Congress and signed by President Richard Nixon in 1970. Its goal was an attempt to prevent money laundering within the financial industry. Amendments to the act were made in the USA Patriot Act of 2001.
- According to provisions of the Bank Secrecy Act, five distinct reports must be filed by financial institutions when a large transaction occurs. These include a currency transaction report, a report of international transportation of currency or monetary instruments, a report of foreign bank and financial accounts, a suspicious activity report and a designation of exempt person.
- All banks and financial institutions that commit a transaction of $10,000 or more in a single business day are required to file paperwork associated with the Bank Secrecy Act.
- If an individual or institution fails to file the paperwork, fines and prison time can be levied. In addition, disclosure to clients of filing the paperwork is illegal.
- Transaction records submitted to the IRS or government include bank account number, personal information and Social Security number. This information is exempt from the Freedom of Information Act.
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