The US Patriot Act serves to facilitate the ability of the United States government in the seizure of the funds of financial institutions as well as those of individuals that are located in other countries. The Act gives the United States Secretary of the Treasury and the Attorney General the authority issue foreign institutions either subpoenas or summons if they are conducting business or maintain investments in American banking institutions. These subpoenas and summons are meant to ensure that accounts held by foreign countries in the U.S. institutions are kept in the records of the accounts held. These records keep track of the deposits and the withdrawals of funds, and the United States banks are held accountable for the maintenance of these records and the identification and reporting of any transactions that appear to be made for the purpose of illegal activities.
Power is granted to the Secretary of the Treasury in the issuance of regulations regarding such maintenance, as well as on the governing of the number of accounts that are held by foreign institutions. When a client or customer has a number of various accounts, steps must be taken to ensure that this is not a way to cover up illegal activity and the customer is who they say they are, they are the beneficial or director owner of the accounts and all of the funds being transferred back and forth. All of the standards and regulations regarding an account holders identity are expected to be carried out at the moment that individual opens and account. This is just one of the ways in which the U.S. Patriot act serves to protect the institutions against fraud and money laundering, as well as the protection of the citizens of various countries from the consequences of terrorist organizations that have access to funding.
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