What is the primary purpose of the Bank Secrecy Act (BSA)?

The primary purpose of the Bank Secrecy Act (BSA) is to assist U.S. government agencies in detecting and preventing financial crimes. The BSA, which was enacted in 1970, requires financial institutions to report certain transactions that could indicate money laundering, tax evasion, or other financial crimes. This includes the filing of Currency Transaction Reports (CTRs) for cash transactions exceeding a certain threshold, as well as Suspicious Activity Reports (SARs) when a transaction appears suspicious. By gathering this critical information, the BSA plays a vital role in the United States' efforts to combat financial crime and terrorism funding.

Other options involve aspects of the financial system but do not align with the core mandate of the BSA. Providing loans to small businesses, for example, is a function of financial institutions aimed at supporting economic growth but does not relate to the prevention of financial crime. Regulating interest rates pertains to monetary policy, typically managed by the Federal Reserve, and is not a focus of the BSA. Enhancing consumer protection in banking is important but falls outside the specific objectives of the BSA, which primarily targets the integrity of the financial system regarding illicit activities.