What type of transactions are regulated under the BSA?

The choice indicating that all financial transactions are regulated under the Bank Secrecy Act (BSA) is accurate due to the comprehensive nature of the legislation. The BSA requires financial institutions to assist government agencies in detecting and preventing money laundering and other financial crimes. This regulatory framework encompasses a wide array of transactions, including but not limited to cash deposits, electronic transfers, wire transfers, and other forms of currency exchanges.

The scope of the BSA is not limited to any specific type of financial activity but is designed to cover all aspects that may pose a risk of illicit financial activities. Financial institutions are therefore obligated to monitor and report transactions that meet certain thresholds or characteristics that may indicate suspicious activity, making it essential for all financial transactions to be considered under this regulation. This broad approach enhances the ability to detect and counteract potential financial crimes or terrorist financing, which is a primary goal of the BSA.