This paper examines the impact of the USA Patriot Act on the banking industry. The paper argues, in contrast to the suggestions of some industry commentators, that the Act's due diligence, record-keeping, and reporting requirements are a proportionate and necessary response to the threat of terrorist financing. The paper specifically rejects contentions that the Act will have anticompetitive consequences for U.S. banks and argues that the Act appropriately promotes transactional transparency in a manner that is not unduly burdensome to the banking industry.