What law mandates the reporting of cash transactions over $10,000?

What law mandates the reporting of cash transactions over $10,000?

• A. Bank Secrecy Act
• B. Money Laundering Control Act
• C. Currency and Foreign Transactions Reporting Act
• D. Financial Institutions Reform, Recovery, and Enforcement Act

Answer: (A)

The law that mandates the reporting of cash transactions over $10,000 is the Bank Secrecy Act. This act requires financial institutions to assist government agencies in detecting and preventing money laundering and other financial crimes. Specifically, it obliges banks and other financial entities to file Currency Transaction Reports (CTRs) for cash transactions that exceed the threshold amount. By ensuring that financial institutions report these transactions, the Bank Secrecy Act helps the government monitor large cash movements that could be indicative of illegal activity or money laundering schemes. This is essential in promoting financial transparency and integrity within the banking system, making it a critical component of the regulatory framework in the United States. Other options, while related to financial regulations and money laundering, do not specifically mandate the reporting of cash transactions above this particular threshold in the way the Bank Secrecy Act does.

The law that mandates the reporting of cash transactions over $10,000 is the Bank Secrecy Act. This act requires financial institutions to assist government agencies in detecting and preventing money laundering and other financial crimes. Specifically, it obliges banks and other financial entities to file Currency Transaction Reports (CTRs) for cash transactions that exceed the threshold amount.

By ensuring that financial institutions report these transactions, the Bank Secrecy Act helps the government monitor large cash movements that could be indicative of illegal activity or money laundering schemes. This is essential in promoting financial transparency and integrity within the banking system, making it a critical component of the regulatory framework in the United States.

Other options, while related to financial regulations and money laundering, do not specifically mandate the reporting of cash transactions above this particular threshold in the way the Bank Secrecy Act does.