Ten years have passed since we bore witness to the first act of terror on American soil in more than a generation. It affected all of us; our families, our businesses, and our national pride.
Following the September 11 attacks, everything changed.
Security became a priority for all Americans, and the U.S. government took several steps, including the Patriot Act, to ensure the safety of its citizens. The banking industry has since played a vital role in protecting these same communities.
In banking, the Patriot Act falls under the umbrella of the Bank Secrecy Act (BSA). According to Horizon Bank’s BSA Compliance Officer Chandra Ostrander, financial institutions had to establish several new policies after the Sept. 11 attacks to help with the investigation and identification of potential terrorists.
One of the biggest changes includes a more extensive “know your customer” policy. Horizon Bank and other financial institutions across the nation are now required to do the following:
Solicit information to “identity, verify and maintain” customers to ensure that they are not funding terrorist activities. This means any time someone opens a new account, bankers must ask for name, date of birth, address and different forms of identification.
Cross check the list of known and suspected terrorists any time someone opens a new account. Banks are required to verify and maintain these customer records as well as report any suspicious activity such as money laundering or financing terrorist groups.
Law enforcement officials can then obtain the necessary subpoenas to get information they need to identify potential terrorist activity. Before 9/11, communication between banks and law enforcement was limited, Ostrander said.
Since the Patriot Act was enacted, there are now specific entities within law enforcement that deal specifically with banks. At Horizon Bank, we take special care to make sure we have good relations with our local law enforcement agencies so if there is ever an emergency, we can reach out directly.
“The Patriot Act gives us the tools to intersect and obstruct terrorism. It is making where we live and where we work a better place,” Ostrander said. “By enforcing and maintaining diligence with the Act, we are actively committed to the communities we serve.”
Interested in learning more? Read the Patriot Act in full to see exactly how banking communities are expected to protect American communities.