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  • Subject area(s): Business
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  • Published on: 21st September 2019
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  • Number of pages: 2

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A straightforward compliance program is characterized as making a point to pursue the guidelines and certain moves to be made with the end goal to avoid incidents. Regardless of the instruments or systems they utilize, they are regularly worried about finished or under-control, as well as regulatory effectiveness. In spite progress in the use of Information Systems to better facilitate compliance. little research has been done to explore how controllers implement consistence or decide the adequacy of directions. This research paper shows the difficulties tended to by the USA Patriot Act.


  • Background:

    “To protect America”-  Patriot Act, disposed by September 11th, 2001. The American government signed the law against terrorist activity will disclose. The act described as- Uniting and strengthening America by providing appropriate tools required to intercept and obstruct Terrorism Act of 2001. The main issue of the act was to increase security, and with that increase of security, federal organizations and agency like National Security Agency were now allowed to survey citizen without warrants which is undoubtedly unethical. As well as, legislation for the third party like banks, insurance companies, financial heads and money saving platforms, giving extra tools to help track, prevent and combat the terrorism in the United States. They point out the main things for United states are to support and to contempt. The United States grants the very important power for law enforcement and intelligence agencies, and it’s work on the both platform international and domestic, with the erase out the available options that were formerly in place. The US government, before makes changes and adjustment of shifting degree to many prior laws with respect to movement, reconnaissance, injured individual pay, tax evasion, and knowledge assembling and sharing. Out of them the Information technology- The government obtain electronic information stored platform- as per the section 209 and Title III (wiretap order). In addition, this section is considered to access the platform and issue the search warrants. Furthermore, the tittle I- Enhancing Domestic Security Against Terrorism (Reading Room).

  • Current Use of Patriot Act:

    The way that the Patriot act is used by today National Security Agency can be exemplified by an intimidatingly large number of programs, systems, and databases. These examples include: DISHFIRE, a database of hundreds of millions of texts messages sent and received by people all around the world, PRISM, a program where the NSA receive internet communication from the top internet providers in the USA and MYSTIC, which receives the metadata of phone calls from all around the world. Most of these have been illegally disclosed by Edward Snowden, a whistleblower who worked for the NSA himself. These programs, whenever someone looks something up or talks to someone about something, they may think that what they’re doing is 100 % private (Boykoff, J., & Etzioni, A.).

  • Patriot Act Protection:

    The Patriot Act was granted in United states, with this reason they must protect and secure in the United States, however, this can bring problems today, or in the future. If someone was intelligent and lucky enough to be able to infiltrate the servers and computers of US government, they would essential have access to the information of everyone in this country. Moreover, the government can step into your digital life means that there already a “back door” open.

  • Future use of Patriot Act:

    As the technology gets better, so will the technology to survey the masses. Reading the patriot act out images relating to George Orwell’s 1984. While in my opinion, it won’t go that far, the potential for US government survey its citizens are great. In addition, it will up to the politicians of the United States to see if surveillance is thing worth keeping. If they do research that conclusion, this technology will only get more powerful and more effective, to the point that it cloud be used for control and oppression of the masses, from the ones that were supposed to protect them (Richards, N.).


    PATRIOT COMPLIANCE ACT is introduced after the 09/11 attacks on USA to prevent financing of terrorist operations and also money laundering. The main reason for this act is Before this act is made, terrorists responsible for any kind of attacks in USA had no issues in opening bank accounts in USA.  

    In my case study, I am taking financial institutions which must comply with the PATRIOT ACT and customer identification programs (CIPS). As per PATRIOT ACT, this compliance program must be followed by any of the companies which fall under the category of financial institution. See below list:

    1. Banking Institutions.

    2. Credit Union Companies.

    3. Investment related companies.

    4. Security Brokers & Dealers.

    5. Insurance providers etc.

    To help USA govt. fight against the terrorist funding and other money laundering activities, PATRIOT ACT requires all the financial institutions should require to fulfill the below CIP programs:

    1. verify each customer who tries open an account with them.

    2. They have to obtain the customer information like Name, address, data of birth and tax id which allows to identify the customer. So, these financial institutions must have written procedures to properly identify each customer.

    3. They have to compare the customer’s identification name with the list of suspected terrorists provided by the government.

    4. Notify the customers in case if any other identification documents are required.

    5. Maintain customer records of the verification process for at least 5 years after the account is closed.

    Proposed procedures to verify customers:

    The financial institutions can follow one of the below procedures to ensure their customers are not of the suspected terrorists.

    1. Daily or batch feed to the USA government maintaining the list of terrorists:

  • The financial institutions can send the daily or hourly feed with list of customers who tries to open accounts with them to the USA government bodies who maintains the Suspected Terrorists information.

  • Then the USA govt. bodies will send a response to these financial institutions whether any of their customers are in the suspected list.

  • Finally, these institutions can block or reject the account for the particular suspects.

  • The disadvantage is it is not real time and the financial institutions has to process the applications in batches.

    Customer account identification process complying with PATRIOT ACT

    2. Real time Service call:

  • The financial institutions can also make a real call per each customer application, so that there won’t be any delays a s proposed in batch processing in the above procedure.

    Patriot Act and Small Business Systems or Real Estate:

    Each individual who tries to purchase real estate or open business are expected to go through the same level of verification which they will go through while opening any kind of account with the financial institutions. Even for applying a loan, the lender must verify the customer’s name against several USA federal databases to make sure they are not in the list of terrorists or related to any kind of terrorist activities.

    The section 326 of patriot act deals with the financial and it’s affected sectors like banks, credit unions, mutual funds, trust companies, security dealers, savings associations and commission merchants. These mentioned industries are not yet finalized, as this act still growing to show its full potential. All financial sectors meet the patriot compliance by identifying every account and customer in their business, one bank may identify its existing customer as reasonably know then other bank may be with housing address or phone numbers and other banks through IDs. Through this financial companies collect information, verify, maintain records and compare against criminal records of the individual, this process is getting more popularity to identify the money transitions in and out of user accounts to remediate money laundering activities. (Dr. Paul Jorgensen, 2003) 

    Patriot Act-326 Compliance on IT sectors:

  • Training:

    Companies use IT and online programs to train their employees on issues related to compliance and spends huge budgets on various software technologies to monitor skeptical acts or abnormal patterns in the transactions. 

  • Customer Identification Program:

    By section 326 compliance in place, all financial organizations are required to store all new and existing customers identification, verification, record keeping, notice and screening the inventory against anti-fraud activities and all their respective compliance measures in this program.

  • List Management:

    Even before the 326 compliance was in place there were a list of denied bodies into the US for which US denies any kind of business with them. With patriot act compliance in place this list is keep on increasing and it contains disallowed persons, banned countries.

  • Integrity of Data:

    Patriot act recommends banks to detect nefarious activities and report them to the government. An example to describe, a single person may get huge funds over many days from many branches, these types of activities are to be detected automatically and report with integrity.

  • Responsibility:

    As the day-to-day business is increasing it requires a good amount of hardware to for banks to stay in compliant with patriot act. A compliance officer is made responsible to manage and monitor all activities in the banks. With the vast volumes of transactions every day, compliance officer makes use of available IT technologies and places standards and strategies to detect if anyone is intent to exploit the compliance and who violate the regulations.

  • Electronic Monitoring:

    Under this compliance IT sector in the banks are required to have a constant surveillance and to store the information and backups of the internet, voicemails, messages, emails, voice calls and any other electronic communication mediums. Every kind of information is subjected to government in search and capture.

  • Foreign IT:

    Organizations that are located outside of United States and runs business with the financial companies in US are required to follow compliance program.

  • Internet:

    According to National Infrastructure and Analysis Center to protect infrastructure and continuity, gained help from Internet Service Providers to have secure access and protect integrity of data. Under this act, service providers are to comply with banks by placing surveillance tools and monitor for suspected usage of data.

  • Data Security:

    Under this act banks are required to have a secure data sharing systems, the security of the information could be guaranteed by through government work or any outsourced private companies. With the wide spread of the financial institutes all over the world, the data is centralized and needs to be protected with the secured authentications of the users. One of establishing is through Public Key Infrastructure(PKI) encrypted systems.

    IT Solution

  • Initiation Phase

    This is a very crucial phase in a Project Management Life Cycle. Every project will start by discussing the feasibility of the project. We will be establishing a project management team and will be reviewing the plan and next deliverable phases of the discussion.

    The respective project manager of the team will discuss and write a proposal for the complete project. Once everything looks good they will be discussing the proposal approval and followed by budget approvals for the entire project.

  • The Scope of the project – The aim of the project is to bring an IT governance to the Patriot Act. Before Patriot compliance, all the radical people were able to open any bank accounts, small business, able to perform sales and they were able to have insurances too. Opening a bank account without a proper verification leads to money laundering. Once the compliance got implemented, all these fraud things have been evacuated. In this phase, we will be developing a project where we overcome all the issue and all the financial transactions will be performed in a secure way, where any unauthenticated person cannot access.

  • Feasibility – We will be using some advanced technologies such as Micro Service for developing a different kind of APIs to fetch customer information. For deploying we will use kubernetes. All these are open source frameworks which will help to build project more feasible.

  • Outcomes – We will be achieving a secure system where all the information of the customers will be stored in a cloud or a database. And by making some Web Service calls we can get all the records of the customer, which will help all financial organizations to see the records of the customer and will make sure whether they need to give them the access or not?

  • Planning

    Once the team setup is completed and everyone on the team is aware of what needs to be done, then we will start the planning phase. This is the main phase where we will be discussing project plan on deliverables such as when and what to develop release in each sprint., project cost, time and quality of the work.

    When we are planning and developing below are the things we will need make sure to get in project delivered on right time with quality and no performance issues.

    The best process for planning are:

  • Define Role and Responsibility: Not everyone in the project will be aware of all the things. So, we need to make sure who are all in the project and their roles and who need to approve each part of the plan.

  • Daily Standup Calls and Retrospective meetings: We will be setting up a daily stand up calls to discuss the issues, task completion and what you will do today and what have you completed yesterday. By doing this it will help to look at the project to see how exactly the team is performing and if they have anyone has blockers all those issues will also get resolved and everything will be moved according to the delivery plan.

  • Project Execution

    This is phase will become after project plan and execution. According to According to Charan and Bossidy, project execution is the discipline of making sure things are done as expected (Kerzner, 2017). To get things right, project management is important and need to be followed to the later. The main component of this is phase is, present the work to stakeholders and other customers.

    In this phase, a manager in this position will make sure whether everything is getting developed according to the plan and pass the same information to different stakeholders. A project manager will make sure to align to the goals carefully and achieving the development outcomes.

    Different strategies for a good project development.

  • Leadership: For a successful project, the project manager will keep communicating with different stakeholders.

  • High Performing Team: Team manager needs to come with a good team where they everyone in the team should have a good knowledge.

  • Monitoring and evaluation: Everyday a project manager need to meet will meet with the team to discuss the project status.

    Project leaders should listen and filter on the opinions of all the stakeholders regarding project information.

  • Project Performance

    Project performance phase aims to measure whether the project is being performed on schedule or not? Also, the here we will be measuring whether the project is being delivered according to the fixed budget.

  • Quality Deliverables: It is very important in this phase. It defines the project completion, and therefore manager and stakeholders should agree about the project deliverables. If we are trying to release an important application, then we need to make sure all those deliverables getting delivered in a different release.

    Furthermore, when the parties of the project agreed about the deliverables, which define the project scope and it is also very important the way the project is performing finically (Eun-Joo Jeong & Seung-Ryul Jeong 2016).

    By doing the project management it will help us to identify and estimate the planned items vs actual items, the project performance will help to see whether they are any updated in the requirements also, we need to make sure whether these changes will not impact the existing budget.


    The patriot Act is a sweeping piece of legislation that amends variety of previous laws and regulations.  This paper has worked to explain the impacts to Organizations and governments substances and focus on Information technology of the Patriot Act. the Patriot Act has forced new commitments on characterized monetary foundations, including institutions involved in foreign investment in U.S. In spite of the fact that the new commitments are not as of now pertinent, dependable organizations are getting ready enemy of cash and client distinguishing proof projects ahead of time of the directions, frequently as an enhancement to their current client screening programs. Based on our review, the impacts of the Patriot Act will be seen for many years.

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