USA PATRIOT Act

“Know Your Member” Rule Now In Place

Since the September 11th terrorist attacks, the Federal Government has been exploring ways to fight the funding of terrorism and money laundering activities. A final version of the USA PATRIOT Act was issued on April 30, 2003, and this webpage is intended to explain how this impacts our members.

What is the USA PATRIOT Act? The name “USA PATRIOT Act” stands for “Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism.” The PATRIOT Act was originally passed on October 25, 2001. An updated version, officially named the Domestic Security Enhancement Act of 2003 but often referred to as PATRIOT Act II, broadly expands the powers of federal law enforcement agencies investigating cases involving foreign intelligence and international terrorism.

How does this affect the credit union? The new USA PATRIOT Act includes a set of regulations designed to help your credit union identify potential terrorists and prevent them from setting up accounts to fund terrorist activities.

This affects Beach Municipal FCU as follows:

  • We are required to obtain certain basic information from members opening new accounts.
  • We must verify their identity.
  • We must keep a record of how their identity was verified and how discrepancies in identity verification were resolved.
  • We must check the member’s identity against government issued lists of suspected terrorists (individuals or organizations).

Does this rule also affect banks? Yes. All financial institutions must implement these new procedures, including banks, credit unions, savings associations and trust companies.

What does this mean for me? When you open a new account, we will ask for your name, address, date of birth and other information that will allow us to identify you. We will also ask to see an unexpired government issued photo identification along with other identifying documents.

How can I find out more? You can learn more about the impact of the USA PATRIOT Act on financial institutions at www.fincen.gov.

We strive to implement these regulations with as little inconvenience as possible. Since this is a matter of national security, your cooperation is vitally important and we thank you for your help. If you have any questions or if we can be of assistance, please contact us at 757.333.7787.