as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
why must identification be provided when purchasing a money order?
user
the bank secrecy act of 1970 requires that banks assist the u.s. gov't in identifying and preventing money laundering. this means they're required to keep records of cash transactions of negotiable instruments, and report any such transactions with a daily aggregate limit of a value greater than (or equal to?) $10,000. because of this, the business which is issuing the money order is also required to record this transaction to report it to the bank, who then holds the records in case fincen wants to review the transactions. edited: added clarification on the $10,000 rule
assistant