Which regulation requires financial institutions to establish a written BSA compliance program?

The Bank Secrecy Act (BSA) is the regulation that mandates financial institutions to establish a written compliance program. This requirement is rooted in the BSA's purpose of preventing and detecting money laundering and other financial crimes. The Act specifically outlines that financial institutions must implement policies and procedures that ensure compliance with the BSA, including employee training, independent audits, and clear procedures for reporting suspicious activities.

By having a written BSA compliance program, financial institutions can effectively demonstrate their commitment to adhering to the laws and regulations designed to combat money laundering and terrorism financing. This program acts as a framework to guide institutions in their operations and regulatory reporting, providing clarity on the responsibilities of staff and the necessary controls to mitigate risks associated with financial crime.

Other options listed do not specifically focus on the same requirements related to anti-money laundering and compliance programs. The Consumer Protection Act primarily addresses issues of consumer rights and protection in financial transactions, while the Financial Services Modernization Act relates to the repeal of the Glass-Steagall Act and aims to modernize the financial services industry. The Sarbanes-Oxley Act focuses on corporate governance and financial reporting and does not address the compliance needs set forth in the BSA. This clear delineation illustrates why the BSA