Subtitle A of Title III of the USA PATRIOT Act provides that it may be required from financial institutions and domestic financial agencies to take certain measures if reasonable grounds exist for concluding that a jurisdiction outside of the United States, or a financial institution operating outside of the U.S., or more classes of transactions within, or involving, a jurisdiction outside of the U.S., or types of accounts is of primary money laundering concern. These measures may include recordkeeping and reporting of certain financial transactions, information relating to beneficial ownership, information relating to certain payable-through accounts, information relating to certain correspondent accounts and prohibitions or conditions on opening or maintaining certain correspondent or payable-through accounts.
Furthermore, two or more financial institutions and any association of financial institutions may share information with one another regarding individuals, entities, organizations, and countries suspected of possible terrorist or money laundering activities.
Covered financial institutions shall provide, no later than 120 hours after receiving a request, to the appropriate Federal banking agency, or make available at a location specified by the representative of the appropriate Federal banking agency, information and account documentation for any account opened, maintained, administered or managed in the United States by the institution.
Subtitle B of Title III of the USA PATRIOT Act amends the Bank Secrecy Act of 1970 and provides that each financial institution shall establish anti-money laundering programs, including, at a minimum, the development of internal policies, procedures, and controls, the designation of a compliance officer, an ongoing employee training program and an independent audit function to test programs. In addition, it includes provisions on disclosing money laundering information and introduces penalties for violations of geographic targeting orders and certain recordkeeping requirements.
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Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (‘USA PATRIOT‘) Act of 2001 sets forth special measures for international counter money laundering, reporting of suspicious activities by financial institutions as well as currency crimes.
Last Updated: July 30, 2019
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