What does the Bank Secrecy Act (BSA) primarily enforce?

The Bank Secrecy Act (BSA) primarily enforces anti-money laundering regulations. Enacted in 1970, the BSA requires financial institutions to assist government agencies in detecting and preventing money laundering activities and other financial crimes. It mandates that banks and other financial entities report certain transactions, maintain records, and establish anti-money laundering programs.

This focus on anti-money laundering is crucial as the BSA aims to combat the use of the financial system for illicit activities, such as drug trafficking and tax evasion. By mandating reporting on large cash transactions and suspicious activities, the BSA plays a significant role in maintaining the integrity of the financial system and ensuring that it is not exploited for criminal purposes.

Other options such as loan issuance rules, consumer protection laws, and interest rate limitations are not the primary focus of the BSA. While these could be related to the broader regulatory framework affecting financial institutions, the BSA specifically targets the requirements and protocols that help deter and identify money laundering activities, making anti-money laundering regulations its primary enforcement purpose.