Passed shortly after the September 11th terrorist attacks, the Patriot Act is a law that aims to make it easier for law enforcement to deter and punish potential terrorists. It's an anti-terrorism measure that broadens the power of law enforcement agencies to investigate and indict terrorists. The law also increases penalties for committing acts of terrorism or supporting related crimes.
A Point of Contention
The Patriot Act drew much controversy upon its passing. Even to this day, many believe that it infringes on constitutional privacy rights.
The issue stems from the powers the Patriot Act grants. Law enforcement can use the law to share information and evidence about possible terrorist crimes. It also gives investigators more tools to get the information they need. That includes the power to obtain business records, surveil possible suspects, and more.
The ultimate goal of the Patriot Act is to protect Americans, but the broad powers it provides are a concern for many privacy advocates.
The Patriot Act and Finance
The Patriot Act also has a significant impact on the financial world. The Title II provision titled the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001, created more bookkeeping requirements for financial institutes. It builds on the Bank Secrecy Act of 1970.
With the Title III provision, banks must have detailed records for transactions with countries with a history of money laundering problems for the United States. Bank Secrecy Act enhanced due diligence aims to boost financial transparency and prevent terrorists from using companies to disguise their illegal activity.
The Title III provision expanded the definition of money laundering, broadening its scope to include computer crimes, bribery, and other fraudulent activity that uses public funds. Click here for more information about bank secrecy act enhanced due diligence.
Bank Secrecy Act enhanced due diligence quickly became a success. It positively impacted money laundering, forcing criminals to move cash physically. For this reason, the Patriot Act's Title III provision also made concealing more than $10,000 a punishable offense.
The Patriot Act had a significant impact on the financial world. While it forced banks and financial institutes to change how they do business, it has seen success in deterring money laundering.
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