reporting of the source and disposition of all cash transactions using $10,000 in currency or more.

Under the BSA, financial institutions must report any cash transaction exceeding $10,000. This includes both deposits and withdrawals.

When a person engages in such transactions, they may be required to explain the origin of the funds to help prevent money laundering and the financing of illegal activities.

Businesses that receive more than $10,000 in cash in a single transaction or related transactions must report it to the IRS using Form 8300. Individuals may also be questioned by banks or financial institutions when making large cash deposits.

The BSA aims to curb money laundering, drug trafficking, and other financial crimes by imposing strict reporting requirements on financial transactions. This law plays a crucial role in making it more difficult for criminals to operate unnoticed within the financial system.