The USA PATRIOT Act is a U.S. law designed to deter terrorism passed in the wake of the September 11, 2001 terrorist attacks. It contains provisions related to money laundering and the financing of terrorism. Title III of the law is specifically known as the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001, which expands on the Bank Secrecy Act (BSA) and related AML laws.
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USA PATRIOT Act
Frequently asked questions
What does the USA PATRIOT Act have to do with money laundering?
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The USA PATRIOT Act significantly expanded AML law in the United States by:
Strengthening the customer identification requirements of the BSA
Requiring U.S. financial institutions to implement due diligence procedures
Requiring enhanced due diligence procedures for high-risk accounts
Expanding which businesses fall under the definition of “financial institution”
Prohibiting U.S. financial institutions from doing business with foreign shell banks
When did the USA PATRIOT Act become law?
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The USA PATRIOT Act was signed into law on October 26, 2001. It was reauthorized and expanded in 2005.
What does USA PATRIOT Act stand for?
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The full title of the law is the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001.