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USA PATRIOT Act
Practical Law Glossary Item 4-382-3899 (Approx. 2 pages)
Glossary
USA PATRIOT Act
Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (also known as the "US PATRIOT Act" or "PATRIOT Act"), was enacted in 2001 following the September 11, 2001 terrorist attacks to provide law enforcement and intelligence agencies with the tools necessary to monitor and prevent terrorist activities, and deter money laundering and terrorist financing.
As it relates to the activities of financial institutions (defined to include insured depository banks, commercial banks, broker-dealers registered with the SEC, persons involved in real estate closings and settlements, and insurance companies), the PATRIOT Act, among other things, amends the Bank Secrecy Act of 1970 to require eligible financial institutions to:
- File suspicious activities reports with the Treasury Department.
- Verify the identities of, and collect specific information from, customers who are opening accounts at these financial institutions (known as know your customer requirements).
- Maintain anti-money laundering programs.
- Report certain transactions of more than $10,000 to the Treasury Department.
For more information on the PATRIOT Act, and anti-money laundering and terrorist financing regulations, see Practice Notes: