Anti-money laundering guidelines came into place worldwide as a result of the September 11, 2001 attacks and the subsequent enactment of the USA PATRIOT Act.
WHAT IS ANTI-MONEY LAUNDERING?
A set of procedures, laws or regulations designed to prevent the practice of generating funds through illegal actions. In most instances money launderers hide their actions through a series of steps that make it appear like money coming from illegal or unethical sources was earned legitimately. Today, all financial institutions internationally are required to monitor, investigate and report transactions of a suspicious nature to the financial intelligence unit of the central bank in their respective country.
HOW DOES AML/BSA AFFECT YOU AS A CUSTOMER
CUSTOMER REQUIREMENTS – OPENING ACCOUNT
Provide:
Name - Legal name
Address – residential or commercial cannot be a PO Box
Date of Birth
Photograph Identification – passport, driver’s license, social security number, alien resident card, etc
Provide information to confirm your identity and source of funds of the transaction
BANK SECRECY ACT LAW
The Bank Secrecy Act requires financial institutions to complete and file a Currency Transaction Report (CTR) to report all cash transactions made by a customer over $10,000. If a financial institution evades the reporting requirement this is consider a violation of the law.