What agency oversees the enforcement of BSA compliance?

The correct answer is FinCEN, as it is the Financial Crimes Enforcement Network, a bureau of the U.S. Department of the Treasury. FinCEN is specifically tasked with the enforcement of the Bank Secrecy Act (BSA) and implements policies aimed at preventing financial crimes, including money laundering and terrorist financing. It is responsible for regulating financial institutions, collecting and analyzing financial transactions, and enforcing compliance with the BSA requirements.

FinCEN plays a central role in developing the rules that financial institutions must follow to detect and report suspicious activities and transactions. This includes the requirement for institutions to establish anti-money laundering (AML) programs, file Currency Transaction Reports (CTRs), and Suspicious Activity Reports (SARs). Through its oversight, FinCEN ensures that institutions uphold BSA compliance and contribute to the national efforts to combat financial crimes.

The other agencies mentioned do have roles concerning financial regulation and enforcement, but their responsibilities do not primarily focus on BSA compliance, making FinCEN the principal agency in this context. The Department of Justice focuses on prosecuting crimes, the Federal Reserve regulates and supervises banks but does not enforce BSA requirements, and the Internal Revenue Service handles tax-related matters and enforces tax laws but is