Congress passed the USA PATRIOT Act in response to the terrorist attacks of September 11, 2001. The Act vests the Secretary of the Treasury with regulatory powers to combat corruption of U.S. financial institutions for foreign money laundering purposes. In federal law, money laundering is the flow of cash or other valuables derived from, or intended to facilitate, the commission of a criminal offense. The Act requires that businesses report cash transactions over $10,000 to the IRS, establishes new customer ID and record-keeping standards, and encourages financial institutions to file suspicious activity reports (SARs) and share info concerning suspected money laundering and terrorist activities with law enforcement agencies. One stipulation of the Act mandates that all lenders must now check each mortgage applicants name against a federal list of terrorist suspects and requires that all borrowers provide proof of name, address, birth date, and Social Security number, even well-known past clients. Lenders will also be required to report suspicious individuals or activities and document the steps taken to comply with this provision of the Act.