Concern rising over Patriot Act's definition of financial institution

Northwestern Financial Review, Jun 1-Jun 14, 2002

Several groups are raising questions about the scope of new mandates buried in the USA Patriot Act, which was signed into law last October. The act's money-laundering provisions are designed to ensure that financial institutions have procedures in place to flag suspicious activity. But the act's broad definition of "financial institutions" includes insurers, stockbrokers, automobile dealers, travel agents, jewelers, pawnbrokers and real estate settlement attorneys.

The Treasury Department has the power to selectively regulate and impose safeguards on the various industries, and some business associations are already seeking exemptions for small business members.