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

Bank Secrecy Act AML Law

FATF 40 AML/CFT Recommendations

Stay ahead of risk with Signzy

Explore tools that help you onboard, monitor, and verify with confidence

AML Screening

Comprehensive Anti-Money Laundering screening solutions to detect and prevent financial crimes through advanced monitoring and compliance tools.

One Touch KYC

Simplify the Know Your Customer (KYC) process with AI and sophisticated fraud detection algorithms to provide a seamless, efficient, and highly secure user verification.