Bank Systems & Technology > Software Helps Banks Comply With Patriot Act > September 23, 2003: "Software Helps Banks Comply With Patriot Act
Sep 23, 2003
As financial institutions scramble to comply with the federal government's Oct. 1 deadline for implementing strict customer-identification procedures, they're looking for technology to scour transactions for patterns of fraud. The USA Patriot Act is aimed primarily at banks, investment firms, insurance companies, and stock and commodities exchanges, regarded as gatekeepers of the nation's financial system. At a minimum, they must put in place procedures to collect information on customers when they open accounts to verify that customers are who they say they are and check whether customers appear on terrorist lists. Records must be retained for five years after an account is closed. The law applies to any organization deemed a likely target for illicit cash, including pawnshops, travel agents, casinos, precious-metals dealers, and money-transfer agents. "