You asked if the USA Patriot Act of 2001 changed the law requiring money order issuers to obtain and record the identification of purchasers.

The USA Patriot Act did not change the law concerning the identification of money order purchasers. The act requires the Secretary of the Treasury to adopt regulations concerning the identity of a customer who opens an account at a financial institution. The regulations were drafted to make it clear that purchasing a money order is different from opening an account and that the act's requirements do not apply (Federal Register Vol. 68, No. 90 (May 9, 2003), p. 25113).

Because the act did not change the requirements, existing law controls. An issuer that issues a money order for $3,000 or more up to $10,000 must keep records that include, among other things, (1) the purchaser's name, (2) the purchase date, (3) the serial number of each money order, and (4) the amount purchased. If the purchaser does not have a deposit account with the issuer, the issuer must also keep records of the purchaser's address, Social Security or alien identification number, and birth date. The issuer must also verify the purchaser's identity (31 CFR § 103.29).

In general, single or related transactions in which the issuer receives more than $10,000 must be reported to the Internal Revenue Service and the Financial Crimes Enforcement Network (31 CFR § 103.30).

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