What does the BSA (Bank Secrecy Act) require?

The correct answer is based on the primary objectives of the Bank Secrecy Act (BSA), which is to prevent money laundering and other financial crimes. The BSA requires financial institutions, including banks and other entities, to report any suspicious transactions that could indicate illegal activity, such as money laundering or fraud. Additionally, the act mandates that these institutions obtain and maintain identifying information about their customers to ensure proper reporting and compliance with laws designed to combat financial crime.

This requirement is crucial because it allows for the tracking and monitoring of potentially illicit financial activities, thereby supporting law enforcement efforts in identifying and preventing such crimes. The focus on reporting and identifying customers is fundamental to the BSA’s framework in promoting transparency and accountability within financial systems.

The other choices do not align with the core mandates of the BSA: keeping all transactions confidential does not contribute to monitoring and reporting requirements; offering discounts on large transactions and promoting cash transactions only do not pertain to the BSA's focus on combating financial crimes.