Which of the following is a key element of an effective BSA compliance program?

Conducting regular independent audits is a fundamental aspect of an effective Bank Secrecy Act (BSA) compliance program. These audits serve to ensure that the institution is adhering to regulatory requirements and internal policies while effectively identifying any gaps or weaknesses in the compliance program. Regular independent audits help in evaluating the effectiveness of the BSA compliance measures in place, allowing organizations to continuously improve their practices and stay ahead of potential regulatory issues. They also provide an objective assessment that can enhance the credibility of the compliance program.

In the context of a BSA compliance program, the other options do not contribute in the same meaningful way. Hiring only senior executives may overlook the importance of having a diverse team with varying levels of expertise in compliance. Focusing solely on customer satisfaction could lead to neglecting compliance responsibilities, which are crucial for maintaining the institution's integrity and legal standing. Minimizing compliance costs may compromise the effectiveness of the compliance program, resulting in inadequate resources for essential functions like training, monitoring, and auditing. Therefore, regular independent audits are essential for ensuring a comprehensive and effective BSA compliance program.