The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, Pub. L. 107-56, amends the Bank Secrecy Act (BSA) to require specified financial institutions (as defined in the BSA) to establish and maintain anti-money laundering programs. Many financial institutions were already subject to regulation under the BSA, but the USA PATRIOT Act expanded the group of entities required to establish anti-money laundering programs. Money services businesses, operators of credit card systems and mutual funds must comply with the anti-money laundering program requirement as of July 24, 2002. Money services businesses include money transmitters and sellers of travelers checks and money orders.

The following businesses or activities are among those required to establish and implement anti-money laundering programs by October 24, 2002:

  • Dealers in precious metals, stones or jewels;

  • Loan or finance companies;

  • Travel agencies;

  • Sellers of vehicles, including automobiles, airplanes and boats;

  • Persons involved in real estate closings and settlements;

  • Private bankers;

  • Insurance companies;

  • Commodity pool operators;

  • Commodity trading advisors; and

  • Investment companies.

The reporting of certain currency transactions has been required even before the new requirements to establish and implement an anti-money laundering program.

If you would like additional information regarding this Alert , or if we can be of assistance in drafting or reviewing Bank Secrecy Act or anti-money laundering policies, please contact Darrell Dreher at (614) 628-1601 or [email protected] .