What requirement does the Annunzio-Wylie money laundering act of 1992 impose on financial institutions?

The Annunzio-Wylie Money Laundering Act of 1992 establishes specific reporting requirements for financial institutions to enhance the monitoring and prevention of money laundering activities. The requirement for financial institutions to file Suspicious Activity Reports (SARs) is a critical component of this act. It mandates that when these institutions detect transactions that they believe may violate money laundering laws, they are obligated to report those transactions to the appropriate authorities. This reporting framework is crucial for creating a paper trail that can aid law enforcement in identifying and prosecuting money laundering and related criminal activities.

The other options do not accurately reflect the core provisions of the Annunzio-Wylie Act. The act is primarily concerned with the responsibility to report suspicious transactions, and while it may extend certain regulatory requirements, it does not directly speak to privacy policy communications or categorize noncompliance with the Bank Secrecy Act (BSA) strictly as a felony. Instead, the act seeks to strengthen the anti-money laundering framework specifically through enhancing reporting requirements like SARs.