HumenhukCIPP/US Study Guide
Chapter 9: Financial Privacy

USA PATRIOT Act, KYC, FATCA and the AML Act of 2020

Reviewed by Victor Humenhuk. Published . Reviewed .

The International Money Laundering Abatement and Anti-Terrorist Financing Act (2001), part of the USA PATRIOT Act, expanded the BSA and added Know Your Customer (KYC) rules and information-sharing. FATCA (2010) targets offshore tax evasion with more KYC; the AML Act of 2020 brought virtual currencies into the BSA's scope.

How this supports CIPP/US study

Use this lesson to separate sectoral scope, data type and regulated entity before testing an exception. Continue with the CIPP/US practice exam.

  • Section 314 information-sharing for cooperative anti-money-laundering efforts.
  • Section 326 Know Your Customer (KYC) rules, including identifying beneficial owners.
  • Section 352 formal money-laundering programs.
  • BSA expansions: new reporting/recordkeeping for industries like broker-dealers.

FATCA (2010) targets U.S. taxpayers with foreign accounts, requiring more detailed KYC for domestic and foreign institutions. The AML Act of 2020 expanded key definitions to explicitly include virtual currencies in the BSA, updated whistleblower protections, and extended subpoena authority over foreign banks with U.S. correspondent accounts.

Key terms - quick answers

What is “Know Your Customer (KYC)”?
Requirements, expanded by the USA PATRIOT Act, to identify customers and beneficial owners of accounts to deter money laundering.
What is “FATCA”?
Foreign Account Tax Compliance Act of 2010, targeting U.S. taxpayers with foreign accounts and requiring more detailed KYC documentation.
What is “AML Act of 2020”?
Anti-Money Laundering Act of 2020, the most comprehensive AML changes since the USA PATRIOT Act, expanding the BSA to explicitly include virtual currencies.

Sources and study method

This independent lesson uses active recall, spaced retrieval and scenario practice. Read the full study method.