What does BSA have in common with CRA and why should I care?

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Question:

Banking is weird sometimes. In my banking job I’m told I need to know about both the Bank Secrecy Act (BSA) and the Community Reinvestment Act (CRA). I don’t understand what those two topics possibly have in common, and why I need to know them. Please explain it simply.

Answer:

What a great observation! You are right – BSA and CRA live on polar opposites of the banking spectrum. One is to stop financial crimes, while the other is to prove that banks are meeting the needs of their communities. What does any of this have to do with the core function of banking? Nothing really. However, banks are in a unique position as society’s “financial gatekeepers” to go above and beyond the plain business of accepting deposits and making loans. Because everything in life (for better or worse) comes down to money, banks have been put squarely on the front lines of several social and political objectives.

Intrigued? Want to learn more about the broader business of banking? Join the upcoming webinar “Bank Compliance Basics – an Overview of Deposit and Lending Regulations” on June 6, 2023! You’ll come away with a far deeper appreciation of the big picture!

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Bank Compliance Basics – an Overview of Deposit and Lending Regulations
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