Which act incorporates anti-money laundering programs?

The Bank Secrecy Act (BSA) is the legislation that specifically incorporates anti-money laundering (AML) programs. It was enacted in 1970 and requires financial institutions to assist government agencies in detecting and preventing money laundering activities. The BSA outlines the requirements for reporting suspicious activities, maintaining records, and establishing policies and procedures that form the backbone of an effective AML program.

Financial institutions are required under the BSA to implement a robust AML program that includes ongoing risk assessments, transaction monitoring, customer due diligence, and employee training. These elements are essential in identifying and reporting potentially illicit activities, thereby fulfilling the intent of the BSA to protect the financial system from exploitation by criminals and terrorists.

In contrast, other acts listed do not specifically focus on anti-money laundering initiatives. The Financial Institutions Reform, Recovery, and Enforcement Act addresses regulatory structures and reforms for financial institutions, the Truth in Lending Act focuses on transparent lending practices and consumer protection, and the Home Mortgage Disclosure Act requires financial institutions to make certain disclosures about home loan applications and lending patterns, none of which primarily deal with AML programs.