What is the general retention period for records under the BSA?

The correct answer is based on the requirements set forth in the Bank Secrecy Act (BSA) and related regulations. Under the BSA, financial institutions are typically required to retain most records for a period of five years. This includes important documentation such as Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs), which play a crucial role in the detection and prevention of money laundering and other financial crimes.

The five-year retention period helps ensure that relevant records are available for regulatory examination and law enforcement investigations when necessary. It is important for institutions to comply with this retention requirement to fulfill their responsibilities under the BSA and to maintain an effective compliance program.

While some other retention periods may apply to different types of financial records or depending on state regulations, the five-year requirement is a standard duration specifically mandated by the BSA for the retention of key records directly associated with compliance with anti-money laundering and reporting obligations.