Financial Industry Regulatory Authority (FINRA) Practice Exam 2025 - Free FINRA Practice Questions and Study Guide

FinCEN, or the Financial Crimes Enforcement Network, primarily focuses on safeguarding the financial system from illicit financial activities through the enforcement of the Bank Secrecy Act (BSA). The BSA establishes requirements for financial institutions to assist in detecting and preventing money laundering and other financial crimes.

Under the BSA, financial institutions must report certain transactions and maintain proper records that help the government track suspicious activities. This includes filing Suspicious Activity Reports (SARs) and Currency Transaction Reports (CTRs). By enforcing the provisions of the BSA, FinCEN is able to monitor, analyze, and take action against potential criminal activities, thereby playing a crucial role in safeguarding the integrity of the financial system.

The other options pertain to different regulatory frameworks and do not directly relate to FinCEN's specific mission of combating financial crime. The SEC regulations focus on the oversight of securities markets and protecting investors, while the Securities Act of 1933 and the Investment Company Act of 1940 govern securities registration and investment companies, respectively. Though these acts are vital to the overall regulatory landscape, they do not address the specific enforcement role of FinCEN in financial crime prevention as effectively as the Bank Secrecy Act does.