U.S. Treasury Prepares For USA PATRIOT Action

Excerpts from a speech given by Jimmy Gurule, U.S. Treasury Under Secretary for Enforcement, at the March 11th Executive Technology Forum, sponsored by Bank Systems & Technology, BAFT and BITS.

Using the tools provided by the USA PATRIOT Act, the federal government and banking industry must continue to work hand-in-hand to safeguard the financial system against terrorist attacks, said Jimmy Gurule, U.S. Treasury Under Secretary for Enforcement, at the Executive Technology Forum held in New York on March 12.

After outlining the key provisions of the USA PATRIOT Act, Gurule described the key principles guiding its implementation by the Treasury Department:

1. To prevent regulatory arbitrage.

2. To enhance coordination and information flow.

3. To respect important privacy interests.

4. To require only the degree of reporting that results in action by the government.

5. To protect the financial system.

Careful, deliberate and effective rulemaking remains a substantial challenge, requiring participation by numerous industry players.

"We currently have about 20 working groups for the different regulatory projects required by the PATRIOT Act, with the Federal Reserve Board involved in about fifteen of these groups," said Gurule. "Furthermore, the Treasury has reached out to the private sector and to industry groups to solicit comments and insights on implementation issues."

Despite the challenge, make no mistake about Gurule's determination to succeed.

"As I have taken time to reflect on what happened on September 11th, my resolve has been strengthened to ensure that the Treasury Department is doing everything we can to prevent another large-scale attack from occurring on our soil," said Gurule. "At the Treasury Department, this preventative mindset has translated into taking steps to shut down the flow of funds into the coffers of the terrorists--to make it difficult for them to underwrite their training camps, purchase firearms and explosives, and to send money abroad to fund future attacks."

"The new PATRIOT Act regulations, when fully implemented, will play a critical role in this anti-terrorist financing strategy," Gurule added.

The full text of the speech can be found at:https://www.treas.gov/press/releases/po1082.htm

Bank Systems & Technology, BAFT and BITS sponsored the Executive Technology Forum.