CANNAINVESTOR Magazine U.S. Privately Held August 2018 | Page 28

l The Bank Secrecy Act of 1970 (BSA), also known as the Currency and Foreign Transactions Reporting Act, is a U.S. law requiring financial institutions in the United States to assist U.S. government agencies to detect and prevent money laundering.

l BSA and Related Regulations. The Bank Secrecy Act (BSA) is the primary U.S. anti-money laundering (AML) law and has been amended to include certain provisions of Title III of the USA PATRIOT Act to detect, deter and disrupt terrorist financing networks.

l There are much guidance established for banks and their clients. FinCEN, the Financial Crimes Enforcement Network wants large money-moving companies inside of the banking network and monitored rather than outside, but banks have many compliance issues so they selectively exclude businesses that cost them too much to monitor.

l Also known as the cash ratio, the cash asset ratio compares the amount of highly liquid assets (such as cash and marketable securities) to the amount of short-term liabilities.

This figure is used to measure a firm's liquidity

or its ability to pay its short-term obligations.

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PROBLEM

When it comes to cash, banks have numerous regulatory issues and filings they must adhere to in order to be compliant.

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