What role does the US Department of Treasury play in financial regulations?

The U.S. Department of the Treasury plays a crucial role in financial regulations, particularly through its oversight and implementation of significant legislation intended to prevent financial crimes, such as money laundering and terrorism financing. One of the key regulations under its jurisdiction is the Bank Secrecy Act (BSA). The BSA requires financial institutions to assist government agencies in detecting and preventing money laundering, including the reporting of suspicious activities and maintaining detailed records of transactions.

By setting regulations under the BSA, the Treasury aims to create a comprehensive framework that enhances the integrity of the financial system, thereby helping to safeguard against illicit financial activities. This aspect of the Treasury's responsibilities is essential for maintaining public confidence in the financial system and facilitating compliance with international standards for preventing financial crimes.

Other roles and responsibilities of the Treasury, such as offering loans or approving credit card applications, fall outside its mandate and are typically overseen by other entities, such as the Small Business Administration for small business loans or private financial institutions for credit card applications. Furthermore, while the Treasury is involved in broader economic policy, it does not directly regulate bank holidays or dictate interest rates, which are primarily influenced by the Federal Reserve.