Are non-bank financial institutions subject to BSA regulations?

Certain non-bank financial institutions are indeed subject to BSA regulations, affirming the student's understanding of the scope of the Bank Secrecy Act. While banks and credit unions are the main focus of BSA compliance, the Act also includes a range of non-bank financial institutions that may pose risks related to money laundering and terrorist financing. These can include money services businesses (MSBs), casinos, and certain types of securities firms.

This broad application of BSA regulations ensures a comprehensive approach to monitoring and preventing illicit financial activity across the financial sector. Regulatory guidance has outlined the specific requirements that these non-bank entities must comply with, such as implementing anti-money laundering (AML) programs, maintaining records, and filing reports. This integration helps uphold the integrity of the financial system overall, not just within traditional banking institutions.