Concentration Account

You open your brokerage account and stare at it for an hour. Yeah. That's you, uh...concentrating on your account.

Okay, here’s the gist: Banks previously could have a “house” account, also known as a concentration account. A house account is a single account that could be used to process and settle multiple customer transactions by the bank. Accounting could (but maybe sometimes didn't) clear up the origin of the money at the end of the day. Intentionally or unintentionally, transactions could be hidden or overlooked...which increased the potential of money laundering or other untoward acts.

The Patriot Act has ended the use of this kind of account.