Patriot Act Financial Glossary

What is it? Short name for the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act). The Patriot Act was signed by President Bush on October 26, 2001.This act contains a number of significant regulatory requirements for banks. Section 314(b) permits financial institutions, upon providing notice to the United States Department of the Treasury, to share information with one another in order to identify and report to the federal government activities that may involve money laundering or terrorist activity. Section 326 of the USA PATRIOT Act requires that financial institutions implement reasonable procedures to (1) verify the identity of any person opening an account; (2) maintain records of the information used to verify the persons identity; and (3) determine whether the person appears on any list of known or suspected terrorists or terrorist organizations. Additional provisions prohibit banks from having accounts with shell banks, address availability of bank records, and change and clarify suspicious activity report requirements.

Finance Term Definition Added By: Amanda

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