The business, finance, and investment communities are more likely to be affected by heightened documentation requirements and due diligence responsibilities. Though the impact falls more on institutions than individual investors, anyone who conducts international business is likely to experience added costs and greater hassles with something as mundane as opening a simple foreign checking account.
Savings Accounts. Fixed Income Essentials. Your Money. Personal Finance. Your Practice. Popular Courses. The law also requires the financial industry to report various suspicious customer behaviors as a measure against terrorism-related money laundering.
Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Money Laundering Money laundering is the process of making large amounts of money generated by a criminal activity appear to have come from a legitimate source. Anti-money laundering refers to laws, regulations, and procedures intended to stop criminals from disguising illegally obtained funds as legitimate income.
White-Collar Crime Definition A white-collar crime is a non-violent crime committed by an individual, typically for financial gain. A certified anti-money laundering specialist CAMS works to spot attempts to obscure the origins of the proceeds of crime. Partner Links. Patriot Act wide-ranging Title II included many other relatively minor clauses.
Title II also contained the sunset clause that would have caused many of the act's provisions to expire in had they not been renewed. We'll discuss more on the sunset clause later.
It has provisions requiring banks to take steps to prevent money launderingallows law-enforcement agencies to gather information from banks and creates longer Patriot Act terms for money laundering and smuggling.
Title IV - This section has provisions intended to strengthen border security. Foreigners with ties to terrorist organizations are banned from entering the United States, and the monitoring of foreign students is expanded by Title IV. An NSL is a demand for the release of information and paperwork related to a person under investigation. There is no judicial review or need for probable cause when an NSL is requested and issued.
Title VI - This section contains provisions for providing financial compensation to victims of terrorism and their families. Title VII - Authorization and budgeting for increased sharing of information between law-enforcement agencies Patriot Act jurisdictions are contained in this section. Title VIII - This portion of the Patriot Act adds several crimes to the list of things considered acts of terrorism, including attacking a mass transit system, using a biological weaponsupporting terrorism and computer hacking.
The penalties for terrorist crimes are also increased. Title IX - This section creates a method for the sharing of national intelligence information between government agencies. Title X - The final section of the Patriot Act Patriot Act a number of relatively minor, miscellaneous provisions. The Patriot Act has come under fire for a number of reasons. It was passed very quickly just over a month after the September 11, Patriot Act,terrorist attacksand Congress spent very little time reading and debating it.
However, Sen. Russ Feingold, a Democrat from Wisconsin, was the only senator to vote against the act, while several members of the House of Representatives joined his dissent or abstained from voting. Critics contend that such a crucial and sweeping piece of legislation deserved more thorough deliberation.
There are fears that the Patriot Act reduces or removes many of the civil liberties enjoyed in the United States and guaranteed by the Constitution. The detainment of material witnesses and terrorist suspects without access to lawyershearings or any formal charges are seen as erosions of the Fifth and Sixth Amendments, rights of due process and trial by jury, respectively.
Critics also charge that the Patriot Act unfairly expands the powers of the executive branch and strips away many crucial checks and balances. The lack of judicial review, or secretive reviews subject to strict gag orders are the key elements of this criticism. There are also fears that the law will be inappropriately used against non-terrorist criminals. The results of an internal FBI audit were released inrevealing that the agency had misused National Security Letters in more than 1, instances since The terrorist attacks on the World Trade Center and the Pentagon on September 11,spurred a nationwide desire for tighter security and increased abilities for law-enforcement agencies to track and stop terrorists.
Jim Sensenbrenner. Assistant Attorney General Viet Dinh was the primary author of the act, following his review of Department of Justice practices and procedures in the wake of the September 11 attacks [Source: Wired. Separate versions of the law went before the Senate and the House of Representatives.
Thank you for your feedback. Introduction History Provisions Reauthorizations Criticism. Brian Duignan Brian Duignan is a senior editor in philosophy at Britannica.
He also handles law, social science, political theory, and some areas of religion. He joined Britannica in See Article History. Britannica Quiz. History Lesson: Fact or Fiction? Istanbul, Turkey, has never been struck by an earthquake. Get exclusive access to content from our First Edition with your subscription.
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