BSA / AML
The Bank Secrecy Act and Anti-Money-Laundering framework requiring institutions to detect, prevent, and report financial crime.
BSA/AML refers to the Bank Secrecy Act and the broader Anti-Money-Laundering regime that requires financial institutions to detect, prevent, and report money laundering and related financial crime.
What it involves
Customer due diligence, transaction monitoring, suspicious-activity reporting, and recordkeeping. KYC and CIP are components of a BSA/AML program.
Compliance vs. loss
BSA/AML controls reduce exposure to financial crime but do not indemnify you for fraud losses that still occur. Identity Fraud Loss Insurance sits alongside your BSA/AML stack and covers the residual identity-fraud loss.
CIP (Customer Identification Program)
A U.S. regulatory requirement for financial institutions to verify the identity of customers opening accounts.
KYB (Know Your Business)
The process of verifying the identity, ownership, and legitimacy of a business customer during onboarding.
KYC (Know Your Customer)
The regulatory process of verifying the identity of customers during onboarding to prevent fraud and financial crime.