USA PATRIOT Act Overview
On October 24, 2001, Congress passed the USA PATRIOT Act (Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act) to deny the use of the U.S. financial system to those involved in terrorist financing and money laundering. The increased role that the country's financial institutions are playing in securing the home front must not be undervalued. All financial institutions are now required to play an integral part in the prevention of identity fraud, the country's fastest growing crime, and the war on terrorism as a part of their every day business.
What is required by USA PATRIOT Act Section 326?
Section 326, known as the “Know Your Customer” or Customer Identification Program (CIP) regulation, of the USA PATRIOT Act published by the U.S. Treasury Department, in summary, calls for the following:
- All financial institutions need to verify the identity of prospective customers to an extent this is reasonable and practicable.
- All new accounts need to be screened against the government 326 watch list. While this list has not been released yet, the OFAC regulations still require that institutions cross reference their customer list against the OFAC and other published lists of suspected terrorists and terrorist organizations.
- A database of all accounts needs to be maintained that includes the account name, date of account opening, identifying information presented and the method used to verify the identity. This information needs to be time and date stamped and maintained for 5 years following the closure of the account.
- Financial Institutions must have a policy detailing its ID Verification Program.
ID Verification and the USA PATRIOT Act
This USA PATRIOT Act regulation has added many burdens for financial institutions and compliance is no easy task. That is why FIS has deployed ID Verification, including its anti-money laundering technology, to provide a comprehensive, easy-to-use and cost-effective solution that assists your institution in meeting the requirements of the USA PATRIOT Act Section 326, 314(a) and OFAC while still fighting identity fraud and reducing your institution’s risk. Here’s how the solution can help your financial institution comply immediately:
- Verifies identity
By cross checking more than 23 billion consumer and business records, ID Verification quickly assesses the accuracy of presented identity information and provides the best information available to make educated and proactive decisions. Click here to complete a FREE ID Verification.
- Screens government watch lists
ID Verification performs government watch list screens on an individual basis, in-batch or integrated via a SOAP API. Institutions have the option of selecting which lists are screened. The solution delivers an instant “pass” or “fail” response, provides enhanced reporting to aid in investigations and offers direction to resolve any "hits". On an ongoing basis, the automated attendant feature conducts nightly screens of customer lists against OFAC updates and sends notification when a "hit" occurs.
- Stores transactional records
Our solution maintains a record of all account information submitted, screened and matched. Your institution can document what transpired during the new account opening process and then insert additional comments at a later time if necessary. Institutions can easily search for records by any criteria for future analysis and examiner review.
- Integrates with risk assessment tools
After verifying identity and determining if you can open a new account,
an institution needs to examine risk and decide if you should begin
a
new relationship. ID Verification allows you to integrate with
ChexSystems QualiFile® (New AccountChexSM), credit reports and government
reports such as the SAR and CTR forms.
Additional resources for your compliance efforts
- Click here to take a FREE ID Verification test
- Attend a FREE Web Seminar to learn more about how FIS, thanks in part to our advanced anti-money laundering technology, can help you comply with the USA PATRIOT Act and OFAC regulations. Click here to register.
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