Have Adequate Procedures Been Implemented to Examine Financial Institution Compliance with the USA PATRIOT Act?
Similar to work discussed earlier relating to the FDICs implementation of GLBA provisions during examinations, we issued a final report on our audit of the Corporations implementation of the USA PATRIOT Act. Under the PATRIOT Act, the Secretary of the Treasury continues efforts to combat the corruption of U.S. financial institutions for money laundering purposes. Our overall objective was to determine whether the FDIC had developed and implemented adequate procedures to examine financial institutions compliance with the PATRIOT Act. The PATRIOT Act has 10 titles relating to the prevention of money laundering and financing of terrorism. Our audit covered Title III: International Money Laundering Abatement and Anti-terrorist Financing Act of 2001. We concluded that DSCs existing Bank Secrecy Act examination procedures cover PATRIOT Act, Title III requirements to some degree. In addition, DSC had advised FDIC-regulated institutions of the new requirements in cases in which the Treasury De
