Glossary

What is BSA?

What is BSA? The Bank Secrecy Act (BSA) is the primary US anti-money-laundering (AML) law. It requires financial institutions to verify customer identity (KYC), keep records of certain activity, and report suspicious or unusually large transactions to regulators.

What the BSA requires

Financial institutions subject to the BSA must run a customer identification program, monitor for suspicious activity, file Currency Transaction Reports for cash above a set threshold, and file Suspicious Activity Reports when warranted. These rules are enforced by FinCEN and the federal banking agencies.

Why you get asked for ID

When a fintech or bank asks for your legal name, date of birth, address, and an identification number at signup, that is the customer identification program required by the BSA. It is a legal requirement, not optional friction. A failure to verify identity usually means the account cannot be opened.

BSA, KYC, and AML — how they relate

TermMeaning
AMLThe broader framework for preventing money laundering and illicit finance.
BSAThe US statute that puts AML obligations on financial institutions.
KYC"Know your customer" — the identity-verification step required by AML rules.

How this relates to Kronos

KronosPay LLC is a financial technology company. Where Kronos offers provider-dependent financial services through a partner bank, that partner is the regulated institution subject to the BSA, and the identity verification you complete at onboarding satisfies those requirements. Read the bank-status page.

Primary sources

General educational information only; not legal advice.

Related glossary terms