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USA Patriot Act

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Your team of corporate officers will be presenting training seminars to senior managers at the upcoming annual company conference in Maui. Research and prepare a presentation which highlights recent legal issues and cases on Employer compliance with the Patriot Act. Discuss how you would tailor it to suit the culture and needs of DWI Company. What areas of the Employer compliance with the Patriot Act deserves extra attention from the company leadership? What recommendations would you make for immediate action?

FYI ONLY - BACKGROUND INFO ON DWI Company:
You have just been hired as the VP for Risk Management of DWI. DWI is headquartered in West Palm Beach, Florida, and has over 150 offices in 30 countries. DWI is incorporated in the State of Delaware; its ships are flagged by Liberia and the Bahamas. The Corporation's principal activities are grouped into the following areas:

ENVIRONMENT: Water and water treatment, waste management;
OIL & ENERGY: Exploration, production, transport, refining, wholesale marketing, alternative fuels research;
COMMUNICATIONS: Telecommunications, Internet, audiovisual activities, publishing and multimedia;
LEISURE & RECREATION: Hotels, casinos, cruise ships;
REAL ESTATE: Builds homes and manages properties in active adult, age-restricted communities;
FINANCIAL: Brokerage for capital market investments in Russia, Eastern Europe, China, and emerging markets;
MANUFACTURING: Produces, distributes, markets, exports and imports spirits and wines.
Your duties as the VP for Risk Management will require that you develop knowledge and expertise in all areas of business law, consult with corporate and outside counsel on legal matters, and advise the board as to available options to reduce or minimize the risk and liability of DWI in its ongoing activities.

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Solution Preview

In the wake of September 11, the federal government enacted the USA Patriot Act to provide law enforcement and federal agencies with additional measures in the fight against terrorism. Among the tools incorporated into the Patriot Act are new regulatory provisions affecting financial institutions, the Act also enlarges the range of financial institutions subject to such regulations.
DWI Company is in the following business: FINANCIAL: Brokerage for capital market investments in Russia, Eastern Europe, China, and emerging markets;
Although the Patriot Act does not specify the types of "financial institutions" subject to the new rules, Treasury Department officials (who are preparing regulations to implement the Patriot Act) have indicated that private equity and venture capital funds fall within the law's scope.
However, the Patriot Act requires financial institutions to establish formal anti-money laundering policies by April 24, 2002, and such policies must be established even if the regulations have not been promulgated by such date.
Adopt anti-money laundering policies that include, at a minimum, the following:
· Adoption of internal policies, procedures and controls to prevent money laundering
· Designation of an anti-money laundering compliance officer
· Implementation of ongoing employee training with regard to recognition of suspicious activities and signs of money laundering
· Independent audits to test the effectiveness of anti-money laundering programs
Internal Policies and Procedures
Private equity funds will want to state their position against money laundering and any suspicious activities that could assist with money laundering or the funding of terrorist activities. For instance, a private equity fund could adopt a statement that the fund, its management and employees are dedicated to complying with the Patriot Act and all laws and ...

Solution Summary

USA Patriot Act ramifications are listed.

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