Page "Money laundering" Paragraph 115

In an attempt to prevent dirty money from entering the US financial system in the first place, the United States Congress passed a series of laws, starting in 1970, collectively known as the Bank Secrecy Act.

These laws, contained in sections 5311 through 5332 of Title 31 of the United States Code, require financial institutions, which under the current definition include a broad array of entities, including banks, credit card companies, life insurers, money service businesses and broker-dealers in securities, to report certain transactions to the United States Treasury.

Cash transactions in excess of US $ 10, 000 must be reported on a currency transaction report ( CTR ), identifying the individual making the transaction as well as the source of the cash.

The US is one of the few countries in the world to require reporting of all cash transactions over a certain limit, although certain businesses can be exempt from the requirement.

Additionally, financial institutions must report transaction on a Suspicious Activity Report ( SAR ) that they deem " suspicious ", defined as a knowing or suspecting that the funds come from illegal activity or disguise funds from illegal activity, that it is structured to evade BSA requirements or appears to serve no known business or apparent lawful purpose ; or that the institution is being used to facilitate criminal activity.

Attempts by customers to circumvent the BSA, generally by structuring cash deposits to amounts lower than US $ 10, 000 by breaking them up and depositing them on different days or at different locations also violates the law.