U.S. banking laws involve other countries.
The U.S. plays an active role in international trade and banking and has established laws that help govern international banking activity. These laws carry both proactive and defensive measures.
Details
The International Banking Act of 1978 and the International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001 comprise two major pieces of U.S. international banking legislation. Such legislation established and currently regulates foreign bank activity within the U.S. financial system.
Effects
The 2001 law aims at reducing foreign terrorist activity within the U.S. banking system. Because of the law, banks must keep a closer watch on accounts connected with foreign banks and persons. By hindering terrorist financial activity among American banks, the U.S. hopes to mitigate or prevent terrorist activity.
Progress
Beyond offering protective measures, U.S. banking legislation opens up international markets for financial profit. The Federal Reserve with its international banking regulations oversees the affairs of U.S. banking in foreign lands, such as investments in foreign organizations.
