Which act is associated with requiring financial institutions to establish anti-money-laundering programs?

• A. Bank Secrecy Act
• B. Dodd-Frank Act
• C. Sarbanes-Oxley Act
• D. USA PATRIOT Act

Answer: (D)

Regulatory requirements for establishing anti-money-laundering programs are most directly tied to the USA PATRIOT Act. After 9/11, this act expanded the Bank Secrecy Act by mandating that financial institutions implement a formal AML program. That means having a written AML policy, designating a compliance officer, providing ongoing staff training, and conducting independent audit reviews, all to ensure the program is effective. It also strengthens customer identification (CIP) and due diligence requirements and requires reporting of suspicious activity. The Bank Secrecy Act provides the baseline, but the PATRIOT Act creates the explicit program requirements. The Dodd-Frank Act focuses on broader financial reform, and Sarbanes-Oxley centers on corporate governance and reporting, not AML program mandates.