What are the roles and responsibilities of the Office of Foreign Assets Control (OFAC) and the Bank Secrecy Act (BSA) in financial regulations?

Question

Accepted Answer

OFAC and BSA are crucial in enforcing financial regulations to combat terrorism, money laundering, and economic sanctions.

OFAC administers and enforces economic and trade sanctions based on US foreign policy and national security goals.
BSA requires financial institutions to assist government agencies in detecting and preventing money laundering and other financial crimes.
OFAC lists individuals and entities that are subject to sanctions, such as the Specially Designated Nationals (SDN) list.
BSA mandates reporting of suspicious activities and large cash transactions to the Financial Crimes Enforcement Network (FinCEN).
Failure to comply with OFAC regulations can result in significant fines and penalties for financial institutions.
BSA compliance includes implementing anti-money laundering (AML) programs and conducting customer due diligence.

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