Who is responsible for implementing customer identification programs as per the Patriot Act?

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The responsibility for implementing customer identification programs as per the Patriot Act primarily falls on financial institutions. This piece of legislation was enacted to enhance the government's ability to combat terrorist financing and money laundering, which necessitated that banks and other financial entities take proactive measures to verify the identity of their customers.

Financial institutions are required to develop and maintain procedures to enable them to effectively identify and verify the identity of their customers before establishing accounts or conducting transactions. This is a critical aspect of ensuring that the institutions are not being used as conduits for illegal activities, such as terrorism financing or money laundering, which have serious national and global implications. Thus, the emphasis on customer identification programs directly aligns with the core responsibilities of financial institutions as defined in the Patriot Act.

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