The Bank Secrecy Act

  • September 21, 2015

Heard of money laundering? The Bank Secrecy Act was enacted to prevent it. Under this rule, all financial institutions in the United States are required by law to assistant the U.S. government in detecting and preventing money laundering.
 
Originally passed in 1970 by the Congress of the United States, it has since then been amended multiple times to remain accurate and up to date. This act is also referred to as the “anti-money laundering” law and Currency and Foreign Transactions Reporting Act.
 
Under the Bank Secrecy Act, financial institutions are mandated to keep records or and report suspicious activity that could include money laundering, tax evasion, or other criminal activities. As more foreign bank accounts become common practice and cash purchases were prevalent in the housing market, it was important to maintain records on where cash was coming from when being used for major investments, especially with properties. A report will be filed if business is conducted and more than $10,000 in cash is part of the transaction.
 
Not only does this protect the financial institution, it helps protect the stability of our economy.

Latest Tweets

© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).