*New Lender Requirements Required by the Patriot Act Regulation: The USA Patriot Act (H.R. 3162 signed by President Bush October 26, 2001) expands the authority of the Secretary of the Treasury to regulate the activities of U.S. financial institutions. He is to promulgate regulations: -under which securities brokers and dealers as well as commodity merchants, advisors and pool operators must file Suspicious Activity Reports (SARs); -requiring businesses, which were only to report cash transactions involving more than $10,000 to the IRS, to file SARs as well; -imposing additional “special measures” and “due diligence” requirements to combat foreign money laundering; -prohibiting U.S. financial institutions from maintaining correspondent accounts for foreign shell banks; -preventing financial institutions from allowing their customers to conceal their financial activities by taking advantage of the institutions’ concentration account practices; -establishing minimum new customer identification standards and recordkeeping and recommending an effective means to verify the identity of foreign customers; -encouraging financial institutions and law enforcement agencies to share information concerning suspected money laundering and terrorist activities; and -requiring financial institutions to maintain anti-money laundering programs which must include at least a compliance officer; an employee training program; the development of internal policies, procedures and controls; and an independent audit feature. (Emphasis added by JHL Group, Inc) Patriot Act Sources Covered | | · United Nations Named Terrorists · Office of Foreign Asset Control · Bank of England Sanctions · World Bank Ineligible Firms · OSFI - Canada · Defense Trade Controls (DTC) Debarred Parties · US Bureau of Industry and Security - Unverified Entity List · US Bureau of Industry and Security - Denied Entity List · US Bureau of Industry and Security - Denied Person List | |