Final answer:
Money Services Businesses should develop internal policies, provide employee training, maintain accurate records, appoint a compliance officer, and regularly test their AML program to prevent BSA violations.
Step-by-step explanation:
The question at hand asks what actions Money Services Businesses (MSBs) should take to prevent Bank Secrecy Act (BSA) violations. A key component in preventing BSA violations is the implementation of an effective Anti-Money Laundering (AML) program. To achieve this, MSBs must undertake a series of steps:
Developing internal policies, procedures, and controls to combat money laundering and terrorist financing.
Designating a compliance officer who is responsible for overseeing the AML program.
Conducting ongoing employee training to ensure that staff are aware of their responsibilities under the BSA and are able to identify suspicious activities.
Performing independent testing of the AML program to guarantee its effectiveness.
Maintaining accurate records and filing required reports, such as Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs).
These steps are not exhaustive but provide a framework for MSBs to follow in order to remain compliant with the BSA regulations.