FinCEN's Legal Authorities
31 U.S.C. 310
This statute formally establishes FinCEN as a bureau within the U.S. Department of the Treasury and outlines its responsibilities and powers, which include:
- Maintaining a comprehensive government-wide service that provides access to a wide range of financial transaction data
- Analyzing and sharing critical information to support law enforcement agencies at the federal, state, local, and international levels
- Identifying emerging trends and methods related to money laundering and other financial crimes
- Operating as the United States' Financial Intelligence Unit (FIU)
- Fulfilling other regulatory responsibilities as delegated by the Department of the Treasury
Authorities Delegated to FinCEN under Treasury Order 180-01
This Treasury Order defines FinCEN’s responsibilities for implementing, administering, and enforcing compliance with the provisions of the Bank Secrecy Act.
The Bank Secrecy Act
The Bank Secrecy Act (BSA), also known as the Currency and Foreign Transactions Reporting Act of 1970, along with its amendments and related statutes, authorizes the U.S. Department of the Treasury to impose specific reporting and compliance requirements on financial institutions and businesses to detect and prevent money laundering. The BSA mandates that financial institutions:
- Maintain records of cash purchases of negotiable instruments
- File reports for cash transactions exceeding $10,000 (in a daily aggregate)
- Report suspicious activities that may indicate money laundering, tax evasion, or other criminal activity
The BSA is commonly referred to as anti-money laundering (AML) law, and its regulations are codified in:
12 U.S.C. 1829b, 12 U.S.C. 1951-1960, 31 U.S.C. 5311-5314, 5316-5336
For more information, please refer to the BSA details here.
USA PATRIOT Act
The USA PATRIOT Act, officially titled "Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001," aims to prevent and punish terrorist activities both in the U.S. and abroad. It enhances law enforcement's investigative tools and broadens the scope of counter-terrorism measures.
For more information, please refer to the USA PATRIOT Act here.
The AML Act and the CTA
On January 1, 2021, Congress enacted the FY2021 National Defense Authorization Act (NDAA), which included critical reforms to the U.S. anti-money laundering (AML) framework. This includes the Anti-Money Laundering Act of 2020 (AML Act) and the Corporate Transparency Act (CTA), both of which are key components in modernizing AML compliance.
Visit FinCEN’s dedicated page on the AML Act or
refer to FinCEN’s Fact Sheet here.
Codified BSA Regulations – Chapter X
On March 1, 2011, FinCEN transitioned its regulations from 31 CFR Part 103 to 31 CFR Chapter X to improve the effectiveness of its regulatory oversight.
Learn more about Chapter X here.
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