Which bank act is designed to prevent financial crimes?

The Bank Secrecy Act (BSA) is specifically designed to prevent financial crimes, particularly those related to money laundering and the funding of terrorism. Enacted in 1970, it requires financial institutions to assist government agencies in detecting and preventing financial crimes by mandating reporting and record-keeping of certain transactions. Financial institutions must file reports on cash transactions over a specified amount and suspicious activities that could indicate money laundering or fraud. This act plays a crucial role in maintaining the integrity of the financial system by ensuring transparency and compliance, thus helping to thwart illegal financial activities.

In contrast, while the Patriot Act also aims to combat terrorism and includes provisions related to financial crimes, its scope is broader and encompasses various aspects of national security. The Fair Credit Reporting Act focuses on credit reporting practices to protect consumer information rather than directly addressing financial crime prevention. The Secrecy Act is not a standalone act related to financial crimes, as it may refer more generally to privacy statutes. Therefore, the Bank Secrecy Act is the most direct and relevant choice for preventing financial crimes in the context of banking and financial institutions.