DATE=7/28/97
TYPE=CORRESPONDENT REPORT
NUMBER=2-217773
TITLE=MONEY LAUNDERING (L ONLY)
BYLINE=DARREN MACKOFF
DATELINE=NEW YORK
CONTENT=
VOICED AT:
(VOICED BY BARBARA SCHOETZAU)
INTRO: WITH THE HOPE OF CRACKING DOWN ON ILLEGAL MONEY
LAUNDERING, THE U-S TREASURY DEPARTMENT TODAY (MONDAY) UNVEILED A
NEW PROGRAM TO REGULATE COMMERCIAL BUSINESSES THAT TRANSMIT MONEY
FROM THE UNITED STATES TO THE REST OF THE WORLD. DARREN MACKOFF
REPORTS FROM NEW YORK.
TEXT: THE U-S GOVERNMENT DISCLOSED A PLAN TO REGULATE
NON-BANKING COMPANIES -- SUCH AS WESTERN UNION AND AMERICAN
EXPRESS -- THAT WIRE MONEY OUTSIDE THE UNITED STATES. TREASURY
DEPARTMENT OFFICIAL RAYMOND KELLY SAID THE NEW REGULATION IS
DESIGNED TO CRACK DOWN ON ILLEGAL MONEY LAUNDERING.
/// KELLY ACT ///
IT WOULD REQUIRE A REGISTRATION OF PARTICIPANTS IN THE
NON-BANKING FINANCIAL INDUSTRY. IT WOULD REQUIRE
CERTAIN ELEMENTS OF THE NON-BANKING FINANCIAL INDUSTRY
TO PARTICIPATE IN THE "SUSPICIOUS ACTIVITY" REPORTING
REQUIREMENTS, SIMILAR TO WHAT THE BANKS ARE REQUIRED TO
DO AT THIS JUNCTURE. AND ALSO FOR MONEY TRANSMITTERS TO
REPORT ANY TRANSMISSIONS OF MONEY OUTSIDE OF THE UNITED
STATES EXCEEDING 750 DOLLARS.
/// END ACT ///
ANNOUNCEMENT OF THESE PROPOSED REGULATIONS FOLLOWS A YEAR-LONG
EXAMINATION OF NON-BANKING FINANCIAL SERVICES IN NEW YORK CITY.
INVESTIGATORS FOUND THAT COLOMBIAN DRUG CARTELS HAVE BEEN USING
THESE COMPANIES TO WIRE THE CARTELS' DRUG PROFITS BACK TO THEIR
NATIVE LANDS. IN NEW YORK ALONE IT WAS FOUND THAT THESE
COMPANIES WERE TRANSMITTING APPROXIMATELY 800 MILLION DOLLARS
JUST TO COLOMBIA.
IN ORDER TO COMBAT THE ILLEGAL USE OF THESE NON-BANKING SERVICES,
THE TREASURY DEPARTMENT ORDERED ALL NEW YORK FINANCIAL COMPANIES
TO PROVIDE A DETAILED RECORD OF ALL TRANSMISSIONS OVER 750
DOLLARS. ACCORDING TO A REPORT BY THE U-S TREASURY DEPARTMENT,
THE MEASURES TAKEN IN NEW YORK DRAMATICALLY REDUCED THE FLOW OF
OF NARCOTICS PROCEEDS THROUGH THESE COMPANIES TO COLOMBIA.
TREASURY DEPARTMENT OFFICIALS SAY THEY ARE CONFIDENT THAT IF THE
PROPOSED REGULATIONS ARE PUT INTO EFFECT NATIONWIDE, THEY WILL
REPEAT THE SUCCESS OF THE NEW YORK REGULATIONS ON A NATIONAL
SCALE. IF IMPLEMENTED, THESE REGULATIONS WOULD BE THE FIRST OF
THEIR KIND IN THE WORLD. A TREASURY OFFICIAL SAID THERE IS
INTERNATIONAL INTEREST IN THE EFFECTIVENESS OF THE U-S EFFORT.
(SIGNED)
NEB/NY/DMM/LSF/LWM
28-Jul-97 4:38 PM EDT (2038 UTC)
NNNN
Source: Voice of America
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