For how long must a bank keep records of transactions involving currency in amounts greater than $10,000?
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According to the Bank Secrecy Act (BSA) and its implementing regulations, a financial institution is required to maintain certain records of transactions involving currency in amounts greater than $10,000. This requirement applies to both deposits and withdrawals, as well as purchases or exchanges of currency.
Specifically, the BSA regulations require that financial institutions keep records of these transactions for a period of five years from the date of the transaction. This includes records such as currency transaction reports (CTRs), which must be filed with the Financial Crimes Enforcement Network (FinCEN) within 15 days of the transaction, as well as any supporting documentation, such as account statements or copies of checks.
The purpose of this requirement is to assist law enforcement in identifying and investigating potential money laundering and other illicit financial activity. By maintaining records of large currency transactions, financial institutions can provide valuable information to authorities about the movement of funds and the individuals or entities involved.
It's important to note that financial institutions may be subject to additional recordkeeping requirements under other laws or regulations, such as the USA PATRIOT Act or state banking laws. In general, financial institutions should consult with their legal and compliance teams to ensure that they are meeting all applicable recordkeeping obligations.