IoT
News
News
4/24/2002
09:27 AM
50%
50%
RELATED EVENTS
The Analytics Job and Salary Outlook for 2016
Jan 28, 2016
With data science and big data top-of-mind for all types of organizations, hiring analytics profes ...Read More>>

More Companies Must Comply With Patriot Act

The update requires additional financial-services companies to develop programs to detect money laundering and financing of terrorism.

The U.S. Treasury has updated the Patriot Act to require more financial-services companies to develop programs that detect and prevent money laundering or the financing of terrorism.

The additional companies that must implement programs include mutual funds, credit-card system operators, money-transfer companies and check cashiers, securities brokers and dealers registered with the Securities and Exchange Commission, and futures commission merchants.

Jeanne Capachin, research director at Meridien Research, says the Patriot Act, in a nutshell, requires financial institutions to compare the identities of new customers, as well as existing customers, to continually updated government lists of "money launderers, drug dealers, terrorists, or other enemies of the state," then report matches to the federal government. Those funds can be frozen or seized by the federal government, she says.

While smaller financial institutions might be able to check their customer lists manually, larger institutions require more automated systems, such as installing third-party software packages. Such a product is available from Thomson Financial, she says.

The Treasury Department's move to require more companies to comply with the Patriot Act, Capachin says, "closes loopholes and tightens the financial noose" around criminals.

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
How to Knock Down Barriers to Effective Risk Management
Risk management today is a hodgepodge of systems, siloed approaches, and poor data collection practices. That isn't how it should be.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.