USA PATRIOT Act AML Provisions
United States
2001
AML/CFT
Overview
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
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Related Regulations
FAQ
Who enforces the AML provisions of the USA PATRIOT Act?
The Financial Crimes Enforcement Network (FinCEN), in coordination with U.S. banking and securities regulators.
Which industries must comply?
Banks, broker-dealers, hedge funds, MSBs, insurers, casinos, and fintech/payment service providers.
What is Section 314?
It enables financial institutions to share information with FinCEN and other institutions to detect and prevent money laundering and terrorism financing.
What penalties apply for violations?
Regulatory sanctions, civil fines, criminal prosecution, and reputational damage.