The purpose of the U.S. Patriot Act is to punish and deter future terrorist attacks in the States as well as in all of the countries of the world. It is meant to enhance the tools and the procedures that are in affect within the law enforcement agencies as well as in other organizations that are able to assist. The prevention and detection as well as the eventual prosecution of those involved in the forms of corruption that serve to strengthen the financial resources available to those committed acts of terrorism such as money laundering is the focus. This applies to actions that take place within the borders of the United States and extends to those affairs conducted on foreign soil. The foreign financial and banking institutions are susceptible to criminal activity and are such, susceptible to the charges and the legal action taken under such circumstances. All institutions are required to account for suspected criminal activity and to report such suspicions and actual acts to the organizations that are responsible for carrying out the legal investigations of the given matter.
Due diligence is required of the financial centers of the United States. All customers or investors must be thoroughly investigated as to the purpose and the integrity of the business of which they conduct. This holds true for all those transactions conducted within the borders of the United States, and those conducted internationally as well. The risk of conducting any sort of business with shell banks is too great, as many of these ‘institutions’ are not regulated. Because of this non-regulation, they are prohibited from having any sort of involvement with the banking and the financial systems of the United States. A bank must have a physical location and address. American banks must also take care in ensuring that all customers do not have connections with shell banks as well. In this way, systems and institutions can be certain that all the necessary investigations have been completed in the steps that are necessary in ending the access to resources and funding of those involved with criminal activities.