11 votes

Look at what insurance companies say about Patriot Act!

So, I'm taking an online course for a state license and found this little nugget about insurance companies and changes after 9-11...thought you'd "enjoy" reading this paragraph:

"Anti-Money Laundering (AML) and the PATRIOT Act

Money laundering is a process of concealing the origin of money obtained through illegal activities, such as crime or drug trafficking. Money launderers make multiple financial transactions, placing the illegal funds into legitimate financial institutions and businesses to “wash” any evidence of its original source. Money laundering is a federal crime with up to 15 years imprisonment and fines and penalties.

After the September 11th terrorist attacks, the PATRIOT Act was signed into law. The PATRIOT Act allows the government to obtain certain records to prevent terrorism, as well as prevent money laundering. The PATRIOT Act expands the definition of “money laundering” to include violent crimes, bribery of public officials, fraudulent use of public funds, smuggling, the illegal export or import of guns, ammunition, and other weapons not authorized in the U.S., and computer crimes.

The PATRIOT Act requires financial institutions to develop strong anti-money laundering procedures, including maintaining thorough records of financial transactions and issuing a suspicious activity report (SAR) for any transactions that could possibly be money laundering. Financial institutions also must freeze or close the account if ordered by the U.S. Attorney General or Treasury Secretary. Financial institutions may be fined up to $10,000 per day for each account if it fails to do so."

If they actually meant what they said, then the majority of the 535 criminals and most in government would be in the hooscow today! Apparently, these new laws are meant for those NOT in government...I'm reminded of "Animal Farm" in which the Pig states, "All animals are created equal...some are more equal than others".

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I had to take that class as

a continuing education course for insurance licensing, they are looking for large cash amounts going into annuities or life insurance. You have a point, I wish they would look after the tax payers money at least as well. I read here that the defense department can't account for 3 trillion dollars? WTF? Really?

PS. Welcome to the insurance business!