Which of the following is a primary purpose of the BSA?

The primary purpose of the Bank Secrecy Act (BSA) is to prevent and detect money laundering activities. The BSA was enacted in 1970 to establish a framework for reporting suspicious activities and to promote the integrity of the financial system. By requiring financial institutions to monitor transactions and report any suspicious activity that might be indicative of money laundering or other financial crimes, the BSA aims to deter illicit activities and enhance law enforcement's ability to fight financial crimes.

The act necessitates the implementation of various compliance measures, such as customer due diligence and the filing of reports like the Suspicious Activity Report (SAR). This proactive approach helps authorities identify and investigate potential money laundering schemes, contributing to overall financial system stability and security. Understanding this purpose is critical for anyone working in compliance, as it underscores the importance of vigilance in monitoring and reporting financial activities.