What does the Bank Secrecy Act require from broker/dealers?

The Bank Secrecy Act (BSA) requires broker/dealers and other financial institutions to implement compliance procedures specifically aimed at detecting and preventing money laundering activities. This involves establishing an Anti-Money Laundering (AML) program that includes components such as customer due diligence, transaction monitoring, and employee training. The goal is to ensure that firms can identify suspicious activities and report them to the appropriate authorities, thus mitigating the risk of being used to facilitate illegal financial transactions.

While other requirements mentioned in the choices, such as reporting large transactions or conducting audits, might relate to financial regulations, they do not specifically capture the essence of what the BSA mandates. The focus of the BSA is on establishing a system that can effectively combat money laundering, making the requirement for compliance procedures the primary consideration for broker/dealers.