What does the USA PATRIOT Act require from financial institutions?

The correct choice highlights that the USA PATRIOT Act mandates financial institutions to implement anti-money laundering training programs. This requirement aims to enhance each institution's ability to detect and prevent money laundering and terrorist financing activities. Under the Act, institutions are expected to establish policies and procedures that not only identify suspicious activities but also educate their employees on recognizing such activities.

This training is crucial because it fosters a culture of compliance within the institution, ensuring that employees at all levels understand the importance of these measures and can effectively contribute to the institution's overall efforts to combat financial crimes. Additionally, by formalizing training protocols, financial institutions can enhance reporting mechanisms and better protect themselves from the risks associated with illegal activities.

Other choices represent activities that might be beneficial or related to financial operations but are not specific requirements set forth by the USA PATRIOT Act. Regular audits of financial records might be part of an institution's internal controls, but they are not specifically mandated by this Act. Similarly, increased premiums for high-risk individuals and restrictions on new policy issuance pertain more to underwriting practices and regulatory responses to risk rather than the anti-money laundering focus of the USA PATRIOT Act.