How often must financial institutions update their BSA compliance program?

Financial institutions are required to update their Bank Secrecy Act (BSA) compliance programs at least annually. This requirement ensures that the programs remain effective and relevant in addressing the evolving risks associated with money laundering and financial crimes. An annual review allows institutions to assess their strategies, policies, and procedures, ensuring they align with current regulations and best practices.

Additionally, the annual updating process enables institutions to integrate any new regulatory guidance, changes in business operations, or emerging risks into their compliance frameworks. Regular updates contribute to a culture of compliance and help mitigate potential vulnerabilities within the institution, ultimately safeguarding the financial system.

The other choices suggest less frequent updates or only adjusting in response to regulatory changes. While updates might be necessary in response to regulatory shifts, an annual review is a proactive approach rather than a reactive one, ensuring that the compliance program is continuously monitored and improved.