P-C Unaffected By Latest Patriot Act Rules
NU Online News Service, May 2, 4:01 p.m. EDT? The latest round of rules to implement the U.S.A. Patriot Act anti-terrorism legislation will not affect the property-casualty insurance industry, a national trade group said.
This week, the U.S. Treasury department issued final regulations implementing section 326 of the act, which requires financial institutions to install procedures to identify and verify customers who open new accounts.
The regulations are designed to standardize the process financial institutions are currently using to prevent money laundering, terrorist financing and identity theft.
But this final set of rules, NAMIC observed, will mostly affect institutions in banking and various types of investment sectors.
"We are very pleased that Treasury has kept the property-casualty insurance industry out of these final rules," said Monte Ward, federal affairs vice president at NAMIC in Indianapolis. "The property-casualty industry does not lend itself to these types of situations."
Enacted in October 2001 following the 9/11 events, the Patriot Act contains a number of anti-terrorism provisions, such as expanding measures against money laundering by requiring additional record keeping and reports for certain financial transactions.
Other measures in the Act include: limiting restrictions on information-sharing between U.S. law enforcement and intelligence officers on terror suspects; authorization of "roving wiretaps"; and giving law enforcement officials greater subpoena power for e-mail records of terrorist suspects.
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