Which of the following federal laws was passed in the U.

The Check Clearing for the 21st Century Act (Check 21), passed in 2003, enables banks to process checks electronically by allowing check truncation, where a physical check can be converted into a digital image (substitute check) at any point in the clearing process. This expedites check clearing and reduces costs associated with physical check handling. The law was enacted after September 11, 2001, partly in response to disruptions in check processing caused by grounded air transport post-9/11.

The web source from Tipalti states: “Check 21, passed in 2003, allows check truncation by converting checks into electronic images, speeding up the clearing process.” The other options areincorrect:

The Patriot Act (B)focuses on anti-terrorism and money laundering.

Gramm-Leach-Bliley (C)addresses financial privacy and was passed in 1999.

Sarbanes-Oxley (D)deals with corporate governance and financial reporting, passed in 2002.

The IOFM APS Certification Program covers “Tax and Regulatory Compliance,” including regulations affecting payment processes. The curriculum’s emphasis on “peer-tested best practices” includes understanding laws like Check 21 that impact check processing.