What is the primary goal of BSA compliance?

The primary goal of BSA compliance is to prevent and detect money laundering and other financial crimes. The Bank Secrecy Act (BSA) was enacted to encourage financial institutions to assist government agencies in detecting and preventing money laundering, the financing of terrorism, and other financial crimes that may pose a risk to the financial system. This compliance framework includes the requirement for financial institutions to implement policies, procedures, and controls to identify suspicious activities and report them to the appropriate authorities, thereby contributing to the overall integrity and security of the financial system.

While enhancing customer service quality, ensuring competitive interest rates, and maximizing financial institution profits are important aspects of banking operations, they do not align with the core objectives of the BSA. The legislation specifically focuses on creating a robust environment for monitoring and reporting suspicious activities, which ultimately serves to protect the financial system from abuse.