Which types of institutions are required to comply with the Bank Secrecy Act (BSA)?

The Bank Secrecy Act (BSA) establishes requirements to combat money laundering and other financial crimes, and it applies broadly to a wide range of financial institutions. Specifically, the correct answer identifies that all financial institutions are subject to BSA compliance, which includes banks, credit unions, securities brokers, casinos, and other entities involved in financial transactions.

This comprehensive coverage is crucial for maintaining the integrity of the financial system and ensuring that various types of institutions that handle cash and manage financial transactions implement controls to detect and report suspicious activities. Such measures help regulators and law enforcement agencies monitor and combat illicit financial activities effectively.

In contrast, the other choices reflect a limited understanding of the BSA's scope. Focusing solely on large multinational banks overlooks the fact that smaller institutions, including local banks and credit unions, are equally bound by these regulations. Similarly, restricting compliance only to government-owned entities or specific types of financial institutions would not align with the BSA’s intent or requirements, as it seeks a broad-based approach to address potential risks across the entire financial landscape.