The USA PATRIOT Act is a legislative designed to prevent terrorism by improving law enforcement's ability to access, investigate, and monitor financial transactions and communications. The act introduces stringent Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements for financial institutions, ensuring they identify, monitor, and report suspicious activities that could be related to terrorism financing or other illegal activities. Key components include enhanced due diligence, customer identification programs, and record-keeping requirements for financial institutions.