Which federal law placed significant focus on combating money laundering?

Which federal law placed significant focus on combating money laundering?

• A. The Home Mortgage Disclosure Act
• B. The Fair Housing Act
• C. The USA PATRIOT Act
• D. The Truth in Lending Act

Answer: (C)

The USA PATRIOT Act is the federal law that prominently addresses the issue of money laundering. This legislation was enacted in response to the events of September 11, 2001, and includes provisions aimed at enhancing the government's ability to combat financial crimes, including terrorism financing and money laundering activities. A critical aspect of the USA PATRIOT Act is the requirement for financial institutions to establish anti-money laundering (AML) programs. These programs include customer identification procedures, reporting suspicious activities, and maintaining accurate records. By imposing these obligations, the law seeks to ensure that financial institutions take an active role in identifying and preventing money laundering schemes, thereby contributing to national security. In contrast, other laws mentioned have different focal points. The Home Mortgage Disclosure Act primarily addresses transparency in mortgage lending practices, while the Fair Housing Act aims to eliminate housing discrimination. The Truth in Lending Act ensures that consumers receive clear and truthful information regarding the costs of credit. Each of these acts serves an important purpose, but they do not have the same direct emphasis on the fight against money laundering as the USA PATRIOT Act does.

The USA PATRIOT Act is the federal law that prominently addresses the issue of money laundering. This legislation was enacted in response to the events of September 11, 2001, and includes provisions aimed at enhancing the government's ability to combat financial crimes, including terrorism financing and money laundering activities.

A critical aspect of the USA PATRIOT Act is the requirement for financial institutions to establish anti-money laundering (AML) programs. These programs include customer identification procedures, reporting suspicious activities, and maintaining accurate records. By imposing these obligations, the law seeks to ensure that financial institutions take an active role in identifying and preventing money laundering schemes, thereby contributing to national security.

In contrast, other laws mentioned have different focal points. The Home Mortgage Disclosure Act primarily addresses transparency in mortgage lending practices, while the Fair Housing Act aims to eliminate housing discrimination. The Truth in Lending Act ensures that consumers receive clear and truthful information regarding the costs of credit. Each of these acts serves an important purpose, but they do not have the same direct emphasis on the fight against money laundering as the USA PATRIOT Act does.