The USA Patriot Act :

What You Need to Know

Shortly after September 11, 2001, the U.S. Congress passed the USA Patriot Act, which was designed to protect against future terrorist attacks, in part by greater tracking of the flow of international visitors and prevention of money-laundering activities.

For U.S. financial instituions, the Patriot Act, reauthorized by President Bush on March 9, 2006, strengthened the Bank Secrecy Act's (BSA) "know your customer" guidelines and strict reporting requirements. It also granted the government the authority to seize business records that may pertain to terrorist or espionage activity.

In implementing the Patriot and Bank Secrecy acts, the U.S. Treasury's Financial Crimes Enforcement Network (finCEN) has no rules directed at real estate professionals with regard to determining the source of funds and "transparency" of money used to buy Florida properties. Those responsibilities fall on lenders and title companies who handle the financial aspects of international purchases.

The law imposes stiff penalties on anyone who has business dealings with individuals or groups involved in terrorist or money-laundering activities.

The above is important part of an article that was Published on Florida Realtor Buisness Magazine of Florida Real Estate, May 2006.

Eli Magen,

Florida Mortgage Consultant.