The USA Patriot Act: Relevance of Section 314 in AML Compliance

The USA Patriot Act is one of the key anti-money laundering regulations in the US and it was passed shortly after the September 11, 2001, terrorist attacks. The act provides law enforcement agencies in the country with broader powers to investigate, indict, and bring terrorists to justice. It also brought in increased penalties for supporting terrorist crimes.

The USA Patriot Act of 2001 established enhanced law enforcement and money laundering prevention procedures so that the country can deter and punish terrorist attacks at home and abroad. It allowed the use of investigative tools designed for organised crime for terrorism investigations.

What is the USA Patriot Act?

The title USA Patriot is expanded as “Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism”. The Department of Justice drafted the original bill, to which the US Congress made sizable modifications and additions. The purpose of the Act is to enable law enforcement officials to track and punish those responsible for the attacks and to prevent any further similar attacks. Federal officials have the power to trace and intercept communications from terrorists for law enforcement and foreign intelligence purposes.

This Act targets financial crimes associated with terrorism and expands the scope of the BSA by giving law enforcement agencies additional surveillance and investigatory powers. The USA Patriot Act includes specific provisions and controls for cross-border transactions in order to combat international terrorism and financial crime.

Anti-money laundering laws and regulations are reinforced under the USA Patriot Act in order to deny terrorists the resources necessary for future attacks. Along with tightening the immigration laws to close borders to foreign terrorists, it also assures to put the rest in exile.

USA Patriot Act and AML

Under the USA Patriot Act, a number of anti-money laundering (AML) obligations were imposed:

Sections of the USA Patriot Act

Below is an overview of the sections of the USA PATRIOT Act that may affect financial institutions: