Transcript US Treasury Department Critical Infrastructure Protection

USA PATRIOT ACT
9th Annual Factoring Conference
Grand America Hotel – Salt Lake
City, UT
Brian J. Peretti, Esq.
US Department of the Treasury
Office of Critical Infrastructure Protection and
Compliance Policy
Friday April 4, 2003
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Office of Critical Infrastructure Protection
and Compliance Policy (OCIPCP)
• Protect Critical Infrastructure for Domestic Financial
Institutions
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Identify the critical infrastructure
Identify physical and cyber security vulnerabilities
Ameliorate these vulnerabilities
Evaluate the results of our efforts
• Money Laundering and Terrorist Financing
– USA PATRIOT Act
– Other applicable laws and regulations
• Personal Information Security
– Identity theft
– Privacy Issues
• Creation of Public/Private Partnership
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USA PATRIOT ACT
• Uniting and Strengthening America by
Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism
• New Anti-Money Laundering Procedures
• Title III – International Money Laundering
Abatement and Financial Anti-Terrorism
Act of 2001, amends Bank Secrecy Act
• Inspired by tragedy of September 11
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Sections of Emphasis
• Section 326 – Verification of Identification
• Section 352 – Anti-Money Laundering
Programs
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Financial Institution
• Loan or finance company
• Factoring is included in the definition that is
referenced in 4(k) of the Bank Holding
Company Act of 1956
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4 Elements
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Anti-Money Laundering Program
Compliance Officer
Training
Independent Testing
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Anti-Money Laundering Program
• Designed to prevent money laundering
• Must develop internal
– Policies
– Procedures
– Controls
• Risk based system
• Tailor it to your shop
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Compliance Officer
• Must be someone that can answer questions
from employees regarding the Anti-Money
Laundering Program
• Is the contact point for the government
• Does not have to be a full time position
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Training
• Must be effective training
• Where the risk is
• If they are responsible for the transaction,
they must have the training
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Independent Testing
• Used to make sure the Anti-Money
Laundering Program works
• Doesn’t have to be an outside person
• Must be independent of the Compliance
Officer
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Who do you apply the AMLP to?
• All parties to the transaction
– Client
– Debtor
• Your source of funds or investor
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Timeframe
• Regulation is currently being drafted
• Will be released sooner rather than later
• Will provide ample opportunity to comply
with it
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What do we need from you?
• Review the regulation when it is released.
• Provide comments to International
Factoring Association
• If questions, call either myself or Charles
Klingman
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US Department of the Treasury
Contacts
• Office of Critical Infrastructure Protection and
Compliance Policy (OCIPCP)
• Charles Klingman, OCIPCP
Phone: 202-622-6428; email:
[email protected]
• Brian Peretti, OCIPCP
Phone: 202-622-0821; email:
[email protected]
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