Bank Secrecy Act
| Bank Secrecy Act | |
|---|---|
| Short Title | Bank Secrecy Act of 1970 (BSA) |
| Official Text | Bank Secrecy Act |
| Country/Jurisdiction | United States |
| State or Province | |
| Regulatory Bodies | OCC, FinCEN |
| Date Enacted | 1970 |
| Scope of the Law | Customers, Financial Organizations |
| Information | |
| Taxonomy | Identification, Insecurity, Secondary Use |
| Strategies | |
12 U.S.C.: Banks and Banking and 15 U.S.C.: Commerce and Trade were amended by the Bank Secrecy Act of 1970. The Act is also known as the Currency and Foreign Transactions Reporting Act to amend the Federal Deposit Insurance Act. It requires to maintain and secure customers' bank records.
- Privacy Silo: Information Privacy
- Business Sector: Financial Privacy
- Targeted Info: Financial Records
- Protects: Security
Text of the law
§ 101. Retention of records by insured banks Insecurity, Identification
The Federal Deposit Insurance Act is amended (1) by redesignating sections 21 and 22 as 22 and 23, respectively, and (2) by inserting the following new section immediately after section 20:
(c) Each insured bank shall maintain such records and other evidence, in such form as the Secretary shall require, of the identity of each person having an account in the United States with the bank and of each individual authorized to sign checks, make withdrawals,or otherwise act with respect to any such account. The Secretary may Exemptions. make such exemptions from any requirement otherwise imposed under this subsection as are consistent with the purposes of this section.
(d) Each insured bank shall make, to the extent that the regulations of the Secretary so require—
"(1) a microfilm or other reproduction of each check, draft, or similar instrument drawn on it and presented to it for payment; and
"(2) a record of each check, draft, or similar instrument received by it for deposit or collection, together with an identification of the party for whose account it is to be deposited or collected, unless the bank has already made a record of the party's identity pursuant to subsection (c).
" (e) Whenever any individual engages (whether as principal, agent, or bailee) in any transaction with an insured bank which is required to be reported or recorded under the Currency and Foreign Transactions Reporting Act, the bank shall require and retain such evidence of the identity of that individual as the Secretary may prescribe as appropriate under the circumstances.
"(f) In addition to or in lieu of the records and evidence otherwise referred to in this section, each insured bank shall maintain such records and evidence as the Secretary may prescribe to carry out the purposes of this section.
"(g) Any type of record or evidence required under this section shall be retained for such period as the Secretary may prescribe for the type in question. Any period so prescribed shall not exceed six 3'ears unless the Secretary determines, having regard for the purposes of this section, that a longer period is necessary in the case of a particular type of record or evidence.
SEC. 601. The Consumer Credit Protection Act is amended by adding at the end thereof the following new title:
"§ 604. Permissible purposes of reports "A consumer reporting agency may furnish a consumer report under the following circumstances and no other: Secondary Use
" (1) In response to the order of a court having jurisdiction to issue such an order.
"(2) In accordance with the written instructions of the consumer to whom it relates.
"(3) To a person which it has reason to believe—
" (A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or
"(B) intends to use the information for employment purposes; or
"(C) intends to use the information in connection with the underwriting of insurance involving the consumer; or
"(D) intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or
"(E) otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer.
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