In January of 2004 MoneyLaundering Alert reported that, "Hartsfield Capital Securities, a broker-dealer in the state of Georgia, became the first securities dealer ever penalized for violating a BSA regulation..." BSA, the Bank Secrecy Act, is the precursor to and one of the primary pieces of regulation from which the USA PATRIOT Act was derived. Penalties associated with failing to comply with OFAC and USA PATRIOT Act regulations are stiff: $250,000 and up to 12 years in jail. The incidence of these penalties is on the rise. In fact, in 2003 alone $24,460,000 in civil penalties were levied by the U.S. Treasury against institutions for noncompliance, an increase of more than 3,000 percent over 2002! As the average daily volume and dollar value of securities transactions continues to increase, the potential of improving your bottom and top line also increases. In light of this, your business is exposed now more than ever to risks related to identity theft and fraud, terrorism, money laundering and noncompliance with BSA, USA PATRIOT Act, and OFAC regulations. These risks can be significant if you have not taken the necessary steps to effectively mitigate risk and meet regulatory requirements. What is the OFAC and USA PATRIOT Act? What practical steps can be taken to comply with these and other government regulations while mitigating various forms of risk? You may find the OFAC and USA PATRIOT Act Policy and Procedure Guides helpful in answering these questions.