USA PATRIOT ACT Flashcards
1
Q
Who enforces the USA PATRIOT act?
A
FinCEN (Financial Crimes Enforcement Network)
2
Q
What is the primary purpose in the mortgage world for the USA PATRIOT Act?
A
Fight funding of terrorism and money laundering
3
Q
What must lenders do under the USA PATRIOT act
A
- Must verify identity through CIP
- Create anti-money laundering program
- Make SARS
- Determine if borrower is on any known terrorist list
4
Q
How do you determine if borrower is on a terrorist list?
A
OFAC (Office of Foreign Asset Control)
5
Q
What is the CIP?
A
Consumer Identification Program. Collect: Name, SSN#, DOB, Address
6
Q
What is a SARs?
A
Suspicious Activity Report
7
Q
When must you file a SAR?
A
30 days of detection
8
Q
What is the record retention for SAR
A
5 years
9
Q
What are the penalties under USA PATRIOT act?
A
Criminal = $1,000,000 and/or 30 years in prison Civil= $250,000 per incident
