US

New United States Anti-Money Laundering Law Changes International Banking Rules

Douglas P. Faucette. Muldoon Murphy & Faucette LLP. dfaucette@mmf-law.com. (assisted by Rory A. Goode)

Introduction

The terrorist attacks on the United States on September 11, 2001, which resulted in the deaths of approximately 3,900 people on US soil, sharply focused the attention of the US Congress on developing stronger anti-terrorism and anti-money laundering laws. Within weeks of the attacks, Congress passed, and President George W. Bush signed into law, the Uniting and Strengthening America by Providing Appropriae Tools Required to Intercept and Obstruct Terrorism Act 2001 (USA PATRIOT ACT) , which contains strong measures intended to prevent, detect and prosecute terrorism and international money laundering. Included in the USA PATRIOT ACT is the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001 (the “Money Laundering Act”), a far-reaching statute that places significant new responsibilities on financial institutions, including US branches and agencies of foreign banks, and will change the way US financial institutions do business with foreign banks.