The Bank Secrecy Act (BSA) is a 1970 federal law that makes some cash and foreign-account facts reportable to the Treasury's Financial Crimes Enforcement Network (FinCEN). Under the Bank Secrecy Act and FBAR rules, the most familiar report is the Report of Foreign Bank and Financial Accounts (FBAR, FinCEN Form 114). This page is for U.S. tax residents with Indian or Canadian accounts, including green card holders and visa holders who pass the residency tests, and U.S. companies owned from abroad.
Who does the Bank Secrecy Act and FBAR cover?
| Report | Who | Trigger |
|---|---|---|
| FBAR (FinCEN Form 114) | Entities formed in the U.S., citizens and resident aliens that hold a financial interest in foreign accounts or have signature authority over them | Highest balances added together above $10,000 in the year |
| Form 8938 (IRS, with the return) | Specified individuals and certain domestic entities | $50,000 / $75,000 and up, by status and residence |
| Form 8300 | Any trade or business that takes in cash, apart from a few exceptions | Over $10,000 in a single payment or related payments; file within 15 days |
What does it mean for a foreign-owned or cross-border business?
| Situation | What the rule says | What to check |
|---|---|---|
| Green card holder or H-1B tax resident with Indian bank accounts or a Canadian RRSP or TFSA | Reportable once combined value passes $10,000; the IRS guide names RRSPs and TFSAs | Highest balances, joint accounts, a parent's account you sign for |
| Illinois LLC owned from India or Canada, with a bank account there | A U.S.-formed entity is a U.S. person | Whether its own accounts abroad pass $10,000 |
| Green card holder who is a treaty resident elsewhere | Treaty residence does not end the FBAR duty (IRS example) | Treaty claims do not replace it |
| Foreign retirement accounts | Foreign accounts owned by a U.S. IRA or certain U.S. plans are covered by the exception | No IRS rule names EPF, PPF or NPS |
The rules and checklist page has penalties and steps. See the FBAR step by step, Form 8938 step by step, the FBAR, T1135 and Schedule FA comparison and deadlines compared. Company ownership reports fall under the Corporate Transparency Act.
Frequently asked questions
Is the $10,000 FBAR threshold per account?
No. It is the combined highest value of all reportable foreign accounts.
Official sources
- FinCEN: Bank Secrecy Act
- IRS: Report of Foreign Bank and Financial Accounts (FBAR)
- IRS: Comparison of Form 8938 and FBAR requirements
- IRS: Form 8300 and reporting cash payments of over $10,000
- eCFR: 31 CFR 1010.821, penalty adjustment table
This page summarizes public guidance in plain language. If anything here differs from the official source, the official source controls.