Congress passed the USA PATRIOT Act Section 314 A in October of 2001. This stands for Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism. All of the country's financial institutions are now required to take an active role in the prevention of identity fraud and terrorism. USA PATRIOT Act Section 314 A deals with a requirement for financial institutions to check government watch lists against their customer databases.

Outline of USA PATRIOT Act Section 314 A

The Treasury Department works with law enforcement agencies to come up with a way to inform financial institutions about potential terrorists and money launderers. They provide a list of targets or suspects, which is updated and sent to financial institutions bi-weekly. If there are any matches when the list is checked against a database, the financial institution must report it to the Financial Crimes Enforcement Network.

It takes a great deal of time and effort to manage the requirements of USA PATRIOT Act Section 314 A. Computer programs are available to provide help. They scan client databases against the 314 A list and report any matches. They work with related programs to assure compliance with all USA PATRIOT Act requirements. They are cost-effective and easy to use.

Customers must be notified about the new identity verifying procedures required by USA PATRIOT Act Section 314 A. When they open an account, they will be asked for name, address, date of birth, driver's license, and other identifying documents. The war on terrorism requires extra effort on the part of financial institutions.