What type of financial transactions are often scrutinized under BSA compliance?

Large cash transactions, international wire transfers, and transactions with non-resident aliens are often scrutinized under Bank Secrecy Act (BSA) compliance because they pose a higher risk for money laundering and other financial crimes. The BSA requires financial institutions to monitor and report certain transactions to ensure they are not facilitating illegal activities.

Large cash transactions are particularly high-risk as they are often associated with money laundering due to the anonymity that cash provides. International wire transfers can also raise concerns, especially when they involve jurisdictions known for inadequate money laundering controls or high levels of corruption. Additionally, transactions with non-resident aliens may be subjected to scrutiny because they can be more challenging to assess in terms of legitimacy and source of funds.

This focus on specific types of transactions is integral to the BSA's objective of preventing financial institutions from being used as conduits for illicit activities. By tracking and reporting these high-risk transactions, institutions contribute to broader efforts to combat financial crime.