REFORMING THE BANK SECRECY ACT TO ADDRESS EMERGING TECHNOLOGY AND PREVENT ILLICIT FINANCING
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Authors
Bradstreet, Shawn M.
Subjects
Bank Secrecy Act
financial technology
fintech
money laundering
Counter Terrorism and Illicit Finance Act
machine learning
digital currency
know-your-customer
KYC
peer-to-peer
P2P
FinCEN
currency transaction report
CTR
suspicious activity report
SAR
beneficial ownership provision
anti-money laundering
H.R. 6068
H.R. 1039
distributed ledger technology
biometrics
risk-based approach
financial technology
fintech
money laundering
Counter Terrorism and Illicit Finance Act
machine learning
digital currency
know-your-customer
KYC
peer-to-peer
P2P
FinCEN
currency transaction report
CTR
suspicious activity report
SAR
beneficial ownership provision
anti-money laundering
H.R. 6068
H.R. 1039
distributed ledger technology
biometrics
risk-based approach
Advisors
Bergin, Richard D., IV
Brown, Shannon A.
Date of Issue
12/12/19
Date
Publisher
Monterey, CA; Naval Postgraduate School
Language
Abstract
The Bank Secrecy Act (BSA) was enacted by Congress to prevent criminals from hiding or laundering their illicit gains through the U.S. banking system. Over the years, criminals continue to exploit the financial system by moving illegal money using new technology. Lawmakers should amend the age-old BSA to address monetary thresholds of currency transaction reports and suspicious activity reports, along with addressing emerging financial technology (Fintech). In dealing with these issues, a delicate balance exists between increasing regulation to prevent crime and hindering the growth of innovation and customer convenience, along with privacy concerns. This thesis provides policy analysis and proposals for legislative and technological improvements to financial fraud detection. Furthermore, policy leaders will have a comprehensive understanding of the benefits and consequences of specific policy actions. This thesis concludes with policy recommendations of the BSA to include increasing the currency transaction report from $10,000 to $60,000 along with incorporating the controversial beneficial ownership provision. Last, add a minimum standard for a client opening financial accounts, increase know-your-customer requirements, and regulate peer-to-peer devices. As criminal organizations continue to move money throughout the U.S. financial services sector, legislators should amend the BSA to address these areas of concern to ensure financial stability and integrity.
Type
Thesis
Description
Series/Report No
Department
National Security Affairs (NSA)
Organization
Identifiers
NPS Report Number
Sponsors
Funder
Format
Citation
Distribution Statement
Approved for public release; distribution is unlimited.
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Copyright is reserved by the copyright owner.