Disabling terrorists is a priority in the United States, and therefore, banks have been required to screen customers. Many regulations and systems have been put into place since September 11, 2001. Some of the most widely discussed requirements are those of the USA PATRIOT Act and the Office of Foreign Assets Control. Both require financial institutions to screen customers to prove their identity and show exclusion from government watch lists.

Requirements to Screen Customers

All financial institutions are required to screen customers in order to deny terrorist groups access to the international financial system. It is also hoped that this will impair the ability of terrorists to raise funds. Suspicious persons are determined by government agencies. The Office of Foreign Assets Control works under the U.S. Treasury Department. They distribute a bi-weekly watch list of terrorist suspects.

Proof of identity is a great concern for financial institutions. Identity theft is one of the fastest growing crimes in this country. Under the rules of the USA PATRIOT Act, financial institutions must notify customers about identification requirements. They must ask new customers for name, date of birth, driver's license, and other identifying documents. The information must be maintained on a database for five years after closure of the account.

Computer software programs are available to make compliance with new rules and regulations very simple. Financial institutions can screen customers and report problems using an automated system that works 24 hours a day. Many of the programs available are cost efficient in addition to being very helpful for the general integrity of financial institutions.