Under the BSA, how long are financial institutions typically required to retain records?

Financial institutions are typically required to retain records for five years under the Bank Secrecy Act (BSA). This requirement is in place to ensure that financial institutions have access to thorough transaction histories and related documentation, which can be critical in cases of investigations, audits, or compliance checks. The five-year retention period supports law enforcement efforts and regulatory compliance by allowing for sufficient time to examine past transactions and behaviors that may be relevant to preventing money laundering or other illicit activities.

While some records may have different retention periods based on specific regulations or types of documents, the five-year rule is a standard requirement that applies broadly across various types of records maintained under the BSA. It's essential for financial institutions to develop and adhere to robust record-keeping policies to comply with this regulation effectively.