Leaving No Loopholes for Terrorist Financing: The Implementation of the USA PATRIOT Act in the Real Estate Field

By Cheney, Elizabeth A. | Vanderbilt Law Review, October 2005 | Go to article overview

Leaving No Loopholes for Terrorist Financing: The Implementation of the USA PATRIOT Act in the Real Estate Field


Cheney, Elizabeth A., Vanderbilt Law Review


I. INTRODUCTION

September 11, 2001 began like any other day but took a drastic turn at 8:45 a.m. Eastern Daylight Time when a plane, hijacked by terrorists, crashed into the northern tower of the World Trade Center, setting it afire.1 As Americans mourned in silence, a second plane rammed through the southern tower of the World Trade Center at 9:05 a.m. and set it aflame.2 The horror continued, as a third plane crashed into the Pentagon, a fourth diverted into a field in Pennsylvania, and both towers of the World Trade Center collapsed.3

It did not take long for Americans to realize they had been attacked on their own soil by an impervious enemy - terrorists.4 This kind of attack was unprecedented in U.S. history, and the death toll reached nearly 3,000 within a few hours.5 President George W. Bush addressed the nation on the night of September 11, stating:

Terrorist acts can shake the foundations of our biggest buildings, but they cannot touch the foundation of America. These acts shatter steel but they cannot dent the steel of American resolve. . .Today, our nation saw evil, the very worst of human nature, and we responded with the best of America.

Americans quickly determined that not only had terrorists attacked on U.S. soil, but also that terrorists had taken advantage of the U.S. financial system to fund the horrific events of September 11.7 Government officials suspected that the terrorists laundered money through banks in the United States and abroad, and through other highly valuable assets, including real estate.8 Consequently, not only did the events of September 11 leave an indelible mark in the hearts and minds of Americans, but these events dramatically changed the country's economy, government, industry, and politics.

One area of the economy remained stable despite the tragic events of September 11: real estate. It remains to be seen, however, whether this sector of the U.S. economy will escape the consequences of the tragedy. On October 26, 2001, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act ("Patriot Act") was signed into law.9 The stated purpose of the law was "to deter and punish terrorist acts in the United States and around the world, to enhance law enforcement investigatory tools, and for other purposes."10 Towards that end, the Patriot Act enhanced the requirements of the Bank Secrecy Act to eliminate money laundering as Congress determined that money laundering had partially funded the terrorist activities.11

Included in the Bank Secrecy Act's definition of financial institutions, adopted by the Patriot Act, were "persons involved in real estate closings and settlements."12 The Bank Secrecy Act required the creation of a paper trail of important financial records when a transaction involved large amounts of currency to further its goal of "protect[ing] against international terrorism."13 The Patriot Act expanded these existing reporting requirements and strengthened communication among the reporting entities.14 The Act also empowered the Treasury Department to determine the extent to which it would regulate certain financial institutions under the Patriot Act. The Department, however, has yet to render a decision regarding the real estate sector.15

Implementation of the Patriot Act in the real estate industry, particularly on lawyers in the field, presents a unique question of how to balance the protection of attorney-client communications against the need to reduce terrorist financing activities. Real estate professionals generally support combating money laundering but are hesitant to impose stringent measures on the field because of a variety of concerns.16 Part II of this Note analyzes the background behind the Patriot Act, other counter-terrorism laws, and money laundering laws. Part III discusses several hurdles in the effort to implement the law and examines different ways the real estate sector can contribute to the war on terror. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

Leaving No Loopholes for Terrorist Financing: The Implementation of the USA PATRIOT Act in the Real Estate Field
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.