USA PATRIOT Act AML Provisions
United States
2001
AML/CFT
Overview
The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act, adopted in 2001, significantly expanded the U.S. Bank Secrecy Act (BSA) framework to strengthen anti-money laundering (AML) and counter-terrorist financing (CTF) measures.It applies to banks, securities and investment firms, money services businesses (MSBs), insurers, casinos, broker-dealers, hedge funds, and fintech/payment providers operating in the U.S. or serving U.S.clients.
Key Obligations
- Establish and implement a comprehensive AML program with policies, controls, and independent audits
- Conduct Customer Identification Programs (CIP), including Know Your Customer (KYC) verification
- Apply Enhanced Due Diligence (EDD) for foreign correspondent accounts and politically exposed persons (PEPs)
- File Suspicious Activity Reports (SARs) and comply with expanded FinCEN reporting obligations
- Prohibit correspondent banking with foreign shell banks
- Share AML and terrorist financing information under Section 314(a) & (b) safe harbor provisions
- Maintain records of wire transfers and customer transactions for regulatory review
- Strengthen cross-border cooperation with law enforcement and regulators
FAQ
Related Regulations
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