Glossary · People and paperwork
BSA/AML Requirement(Bank Secrecy Act / Anti-Money Laundering Requirement)
In short
These are federal regulations requiring financial institutions to report suspicious transactions and verify customer identities to combat money laundering and terrorism financing. Your lender must follow these rules.
What it means in a deal
Your SBA lender is legally obligated to comply with the Bank Secrecy Act and Anti-Money Laundering rules. This translates into strict due diligence on your identity, the source of your equity injection, and the legitimacy of the business acquisition. Be prepared to provide extensive documentation to satisfy these requirements.
Related terms
Common questions about BSA/AML Requirement
- Is "insurable interest" always a legal requirement for obtaining business life insurance?
- Is profitability a strict requirement for getting an SBA 7(a) loan?
- Is a blanket lien on all business assets a standard SBA requirement?
- How is the equity injection requirement affected if I'm purchasing a franchise?
- Is the collateral requirement less strict for smaller SBA 7(a) loan amounts?
- What is the SBA's minimum equity injection requirement for a business acquisition?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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