Customer database screening has become more important as protection from terrorism has become a priority in the United States. After the attacks of September 11, 2001, Congress passed the USA PATRIOT Act to help unite and strengthen America. Financial institutions are now required to comply with USA PATRIOT rules as well as OFAC regulations. Customer database screening is one of the key requirements expected of all financial institutions.

Details of Customer Database Screening

Financial institutions required to comply include banks, credit unions, securities brokers, futures merchants, and mutual funds. All new accounts must be screened against government watch lists. Every account must be maintained on the database for five years after closure. The database should include name, date of opening account, and method used to verify identity.

The types of accounts that require customer database screening are checking accounts, savings accounts, loans, mortgages, credit cards, and safe deposit boxes. The Office of Foreign Assets Control works with law enforcement agencies to come up with a list of potential terrorists and money launderers. The lists are distributed bi-weekly and must be checked against databases regularly. Matches must be reported to the Financial Crimes Enforcement Network.

While compliance with customer database screening will be confusing and time-consuming, the rewards should outweigh the burden. Software solutions are available to sort, screen, analyze, and report data. Programs may be customized to fit individual needs, such as adding extra watch lists and reducing false positives or negatives.