Bank Secrecy Act and FBAR Guide for Small Businesses
Plain-English Bank Secrecy Act guide: when to file the FBAR and Form 8300, the $10,000 triggers, deadlines and penalties, with slides and a coverage table.
Last reviewed October 29, 2026 · General information, not legal advice
General information only, not legal advice. CPA Tax Payroll and Accounting Corp is a CPA firm, not a law firm. Laws change: confirm with the official source or a licensed attorney before you act. Read the full notice.
The Bank Secrecy Act (BSA) is a federal law from 1970 that makes certain cash and foreign-account facts reportable so authorities can trace money. Two duties reach small businesses and households most often: the FBAR, a yearly report of foreign financial accounts, and Form 8300, a report of more than $10,000 in cash received in a trade or business. FinCEN, a Treasury bureau, writes the rules and receives the FBAR; the IRS handles paper Form 8300. This guide is for owners, freelancers, nonprofits and families with accounts abroad, for example in India or Canada.
Slide show: The Bank Secrecy Act in seven slides
What the law does
The Bank Secrecy Act (1970) makes certain cash and foreign-account facts reportable so authorities can trace money.
Who it reaches
U.S. citizens, residents and U.S.-formed entities with foreign accounts file the FBAR. Businesses taking large cash payments file Form 8300.
The rule
If foreign accounts together topped $10,000 at any time in the year, file FinCEN Form 114. Cash received over $10,000 goes on Form 8300.
The number
Cash payments within 24 hours count as related. Installments for one transaction count when they total over $10,000 in 12 months.
The deadline
The FBAR is due 15 April, extended automatically to 15 October, and filed online with FinCEN. Form 8300 is due within 15 days.
The penalty
Non-willful FBAR: up to $16,536 per report. Willful: the greater of $165,353 or 50 percent of the balance (2025 figures).
A tip
Splitting cash to dodge a report, called structuring, is itself a crime with up to 5 years in prison, even if the money is legitimate.
Who is covered
Duty
Who
Trigger
FBAR (FinCEN Form 114)
U.S. citizens, resident aliens and U.S.-formed entities with an interest in, or signature authority over, foreign accounts
Combined value above $10,000 at any time in the year
Form 8300
Any person in a trade or business that receives cash, with limited exceptions
More than $10,000 in one transaction or related transactions
Currency transaction report
The bank or other institution, not the customer
More than $10,000 in currency
Anti-structuring rule
Everyone
Breaking up cash transactions to avoid a report is unlawful
Money services businesses
Currency dealers, check cashers and sellers of money orders or stored value, above $1,000 per person per day; money transmitters, no threshold
Most register with FinCEN, keep a written anti-money-laundering program and, except check cashers, report suspicious activity
How it touches your taxes and payroll
The FBAR is not attached to your tax return, but Schedule B, Part III of Form 1040 asks about foreign accounts, and Form 8938, filed with the return, has its own thresholds and penalties. See FBAR for Indian bank accounts and Form 8938 for Indian assets. Form 8300 is not a 1099, but the e-file rule counts the other information returns, such as W-2 and 1099 forms, that the business files. A missing or wrong Form 8300 costs up to $340 per return for returns due in 2026 and 2027, like W-2 and 1099 penalties.
