The USA PATRIOT Act was signed into law in October 2001 in response to the terrorist tragedies of September 11. One of the titles of this act, Title III: International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, affects financial institutions. Understanding the USA Patriot Act provides students with an overview of the implications of Title III that affect the mortgage lending industry.

This course is divided into two modules and includes case studies. The first module of Understanding the USA PATRIOT Act discusses the implications of the Title III that impact the mortgage lending industry. The second module provides an overview of the joint final rule implementing Section 326 of Title III, which directs banks, savings associations, credit unions, private banks, and trust companies to implement a customer identification program (CIP) as a means to prevent business transactions with entities associated with terrorism.

Course Outline:

Lesson 1 - USA PATRIOT Act Overview

• USA PATRIOT Act Titles
• Highlights of the USA PATRIOT Act
• Title III: International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001
• Section 314: Sharing Information
• Section 326: Customer Identification Program
• Section 352: Establishing an Anti-Money Laundering Program
• Section 365: Requirement That Nonfinancial Trades or Businesses Report Certain Currency Transactions
• How the USA PATRIOT Act Will Affect You

Lesson 2 - Customer Identification Programs

• Definitions
• Obtaining Identification Information
• Identification Verification
• Retaining Records
• Comparison with Government Lists
• Customer Notice
• Reliance on Another Financial Institution
• Case Studies

Course Credit:
Completion of this course earns five points toward MBA's Certified Mortgage Banker (CMB), or Certified Mortgage Technologist (CMT) designations. This course also earns five points towards MBA's Certified Residential Underwriter (CRU Level III) Specialist Designation.