Bank Secrecy Act (BSA)

What the Bank Secrecy Act requires

The Bank Secrecy Act (BSA), passed in 1970, is the main U.S. anti-money laundering law. It requires banks and credit unions to help the government detect and prevent financial crime. Its core requirements include:

• Maintaining an anti-money laundering (AML) compliance program with internal controls, a designated compliance officer, training and independent testing.
• Verifying customers and their beneficial owners through customer due diligence.
• Filing Currency Transaction Reports for cash transactions over $10,000.
• Filing Suspicious Activity Reports when activity may involve a crime.
• Keeping records of certain transactions.

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Treasury, administers the BSA.

Why it matters for cannabis businesses

Because marijuana remains federally controlled, funds from cannabis businesses can raise money laundering concerns for banks. FinCEN's 2014 marijuana guidance explains how institutions can serve these businesses while meeting BSA obligations. In practice, that means more paperwork at onboarding, closer monitoring of account activity and regular reporting.

What operators can do

• Keep licenses, ownership records and organizational documents current.
• Reconcile deposits with point-of-sale and seed-to-sale records.
• Report changes in ownership, licensing or business activity to your bank promptly.

How Safe Harbor helps

Safe Harbor provides the compliance infrastructure that makes cannabis banking work for partner financial institutions and gives operators compliant business accounts backed by federally insured partners.

Related terms

Suspicious Activity Report · Currency Transaction Report · Full glossary

This page is for general information only and is not legal advice. Last reviewed November 2026.