Agencies Issue Bank Secrecy Act Examination Procedures Relating to Section 326 of the USA PATRIOT Act

July 28, 2004

The federal financial institutions regulatory agencies issued Bank Secrecy Act (B.S.A.) procedures for examining each domestic and foreign banking organization’s customer identification program (CIP) which is required by section 326 of the USA PATRIOT Act (codified in the B.S.A. at 31 U.S.C. 5318(l)). The procedures are designed to help financial institutions fully implement the new CIP requirements and facilitate a consistent supervisory approach among the federal financial institutions regulatory agencies.

Related Links:
Bank Secrecy Act Examination Procedures for Customer Identification Programs [pdf]

The USA PATRIOT Act, signed into law on October 26, 2001, establishes new and enhanced measures to prevent, detect, and prosecute money laundering and terrorism. The regulation implementing section 326 of the Act requires each financial institution to implement a written CIP that includes certain minimum requirements and is appropriate for its size and type of business. The CIP must be incorporated into the financial institution’s anti-money laundering compliance program, which is subject to approval by the financial institution organization’s board of directors.

Compliance with the regulation was required by October 1, 2003.


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