What act gives the Secretary of the Treasury the power to issue subpoenas for records of foreign financial institutions?

The USA Patriot Act of 2001 significantly expanded the powers of the government to combat money laundering and financing of terrorism. Specifically, this act provides the Secretary of the Treasury with the authority to issue subpoenas for records held by foreign financial institutions. This power is crucial in the context of addressing the complexities of global finance and enhancing the federal government's ability to investigate and prosecute financial crimes that involve international elements.

The act reflects a heightened need for vigilance following events that increased awareness of the risks posed by terrorist financing and other illicit activities that transcend national boundaries. By granting the Secretary this power, the USA Patriot Act plays an essential role in strengthening the U.S. financial system's defenses against money laundering and related offenses, enabling better oversight of foreign entities that may engage in suspicious activities.

Understanding this provision is essential for recognizing how legislative measures adapt to the evolving landscape of financial crime, particularly in a globally interconnected economy.