Usa Patriot Act Compliance

Written by Jill Morrison
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Financial institutions may feel as if they are being bombarded by government regulations and mandates. The Office of Thrift Supervision, FDIC, HIPAA, and OFAC are examples of groups requesting immediate action. Another relatively recent government requirement is USA PATRIOT Act compliance. This is a challenging task that requires extra effort and dedicated attention to details.

Outline of USA PATRIOT Act Compliance

The USA PATRIOT Act has two sections requiring immediate action by financial institutions. Section 326 is known as the Customer Identification Program regulation. Banks must verify the identity of prospective customers and maintain the records for five years after closure of an account. Section 314 A is a requirement for financial institutions to check government watch lists against their customer databases to determine if they are doing business with suspected terrorists or money launderers.

USA PATRIOT Act compliance solutions include use of consultants and utilizing the latest technology with web-based and computer software programs. The programs have the ability to scan client databases against 314 A lists and report any matches immediately. They integrate with related programs to assure compliance with all mandates in the most timely and cost-efficient manner. Fully automated programs provide 24 hour service that is also user-friendly.

USA PATRIOT Act compliance is an ongoing process which must be supported by management. They will ultimately be held accountable and face penalties for non-compliance. The new regulations should be viewed as opportunities to improve performance. Training of all employees should be a priority to make sure that controls are in place and working properly.


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