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2025 marks the 120th anniversary of Century Next Bank. Each month, members of our team will share something significant about banking history. In remembrance of Patriot Day, Charles Young, Vice President Compliance, BSA Officer, has recounted the way 9/11 changed the way banks fight crime.
September 11, 2001, is a day that lives in the memory of every American who experienced it. We remember where we were, what we were doing, and how the world seemed to pause as news broke that airplanes had struck the World Trade Center towers in New York City. The tragedy shook the nation, but it also ignited a powerful sense of unity and resilience. Americans refused to be paralyzed by fear. Instead, we stood together, determined to protect our country and prevent future attacks.
In response to the events of 9/11, the U.S. government took swift action to strengthen national security. One of the most impactful legislative measures was the USA PATRIOT Act, signed into law by President George W. Bush in October 2001. The full name—Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism—reflects its purpose: “to deter and punish terrorist acts in the United States and around the world, to enhance law enforcement investigatory tools, and other purposes.”
The USA PATRIOT Act significantly expanded the responsibilities of banks and other financial institutions. It emphasized the importance of preventing money laundering and stopping the flow of funds to terrorist organizations. Over the past two decades, these requirements have become central to the Bank Secrecy Act (BSA) framework, particularly in the areas of anti-money laundering (AML) and counter-terrorism financing (CTF).
Banks that follow strong BSA programs serve as critical partners to law enforcement to ensure that the financial system is not used to support money laundering or terrorist activity. These efforts are not just about regulatory compliance—they’re about protecting the integrity of the financial system and contributing to national security.
One of the most fundamental changes introduced by the USA PATRIOT Act is the requirement for banks to implement a formal Customer Identification Program. This program ensures that banks verify the identity of every customer who opens an account, whether they are an individual or a legal entity.
At a minimum, banks must collect the customer’s full name, date of birth (for individuals), government identification number, and physical address. These requirements help prevent anonymous or fraudulent accounts and make it more difficult for criminals to hide their identities. While banks may tailor their CIP procedures to match their specific risk profiles, the core elements remain consistent across the industry.
The CIP requirement also laid the groundwork for more advanced identity verification practices, including the use of biometric data, digital identity platforms, and enhanced screening tools. As technology evolves, so, too, does the way banks verify and monitor their customers.
Although the BSA has been in place since 1970, the USA PATRIOT Act strengthened its enforcement by requiring banks to develop more comprehensive AML programs to ensure that banks are not only compliant but actively engaged in preventing financial crime.
AML programs also serve as a foundation for broader financial crime prevention efforts, including fraud detection, sanctions screening, and cybersecurity. By integrating these elements, banks create a more holistic approach to risk management.
In 2018, the Financial Crimes Enforcement Network (FinCEN) introduced the Beneficial Ownership Rule, which builds on the CIP requirements. This rule requires banks to identify and verify the individuals who own or control legal entities opening new accounts. This rule helps prevent criminals from using shell companies to hide their identities and move illicit funds. It also supports broader efforts to increase corporate transparency and reduce financial secrecy.
The Beneficial Ownership Rule reflects a growing recognition that financial crime often involves complex structures designed to obscure the truth.
The attacks on 9/11 changed our country in countless ways. One of the most lasting changes is how banks help protect the financial system from crime and terrorism. Today, financial institutions continue to build on that foundation, adapting to new threats and evolving regulations.
By maintaining strong compliance programs and staying alert to suspicious activity, banks play a vital role in keeping our country safe. The legacy of 9/11 reminds us that vigilance is not just a legal requirement—it’s a responsibility we all share.
