How does the Bank Secrecy Act prevent money laundering?

The Bank Secrecy Act (BSA) requires financial institutions to report suspicious activities, maintain certain records, and implement anti-money laundering (AML) programs. By mandating the filing of Currency Transaction Reports (CTRs) and Suspicious Activity Reports (SARs), the BSA helps authorities identify and investigate potential money laundering activities. Additionally, the BSA promotes transparency in financial transactions, making it harder for criminals to disguise illicit funds. Ultimately, these measures enhance the ability of law enforcement to track and combat financial crimes.