DATE=3/9/2000
TYPE=CORRESPONDENT REPORT
TITLE=MONEY LAUNDERING (L ONLY)
NUMBER=2-260044
BYLINE=LETA HONG FINCHER
DATELINE=WASHINGTON
INTERNET=YES
CONTENT=
VOICED AT:
INTRO: The Clinton Administration is proposing new
laws to crack down on money-laundering, the practice
of channeling profits from crimes such as drug-
trafficking into legitimate bank accounts. But as V-O-
A's Leta Hong Fincher reports, lawmakers are divided
over how effective the proposed legislation will be.
TEXT: The U-S government says dirty money accounts
for up to one trillion dollars flowing through the
international financial system every year. And most
of it winds up laundered in offshore banking centers,
which hide the identity of the account holders.
Congress is considering new legislation to target
these criminal safe havens. Deputy Treasury Secretary
Stuart Eizanstat described the plan (Thursday) at a
hearing of the House Banking Committee.
/// EIZENSTAT ACT ///
The legislation we're proposing today would fill
a crucial gap in our authority and significantly
enhance our ability to take calibrated, targeted
actions with respect to money laundering threats
posed by foreign jurisdictions, institutions, or
transactions.
/// END ACT ///
Under the proposed legislation, the Treasury
Department could require U-S banks to maintain records
of transactions and provide them to the government on
request. It could also require foreign owners of
accounts in the United States to identify themselves
and impose conditions on U-S financial institutions
holding accounts of foreigners suspected of laundering
money.
But Senator Charles Schumer said he is disappointed
with the administration's proposal, because it does
not outright ban U-S banks from dealing with foreign
institutions widely known to launder money. The
proposal gives the Treasury Department discretion, or
the ability not to take action against money
launderers if it so chooses.
/// SCHUMER ACT ///
There is no reason to allow any of these banks
to exist, because we know that their sole and
only purpose is money-laundering. What
discretion do we need? When the State
Department argues against cutting off the
Bahamas by saying that we'll lose their vote in
the U-N, they almost always prevail.
/// END ACT ///
Senator Schumer said international money laundering
will only get worse as more and more people gain
access to the Internet, which allows quick and
anonymous transfer of money.
Representative Maxine Waters said the Administration
needs to do more to penalize private U-S banks that
profit from business with corrupt foreign officials or
drug-traffickers. She said under the current system,
large banks consider money-laundering fines to be a
mere cost of doing business.
/// REST OPTIONAL ///
/// WATERS ACT ///
Are we prepared to get tougher, are we prepared
to put anybody out of business and are we
prepared to stop American banks from wire-
transferring money from these banks into off-
shore banks, knowing that they're just havens
for the drug-traffickers.
/// END ACT ///
Money-laundering became a hot topic in Congress last
fall, when investigators discovered that the Bank of
New York had laundered seven-billion dollars from
suspicious sources in Russia. Bank officials have
pleaded guilty in the case and authorities have
imposed new controls on the bank. (Signed)
NEB/lhf/gm
09-Mar-2000 18:05 PM EDT (09-Mar-2000 2305 UTC)
NNNN
Source: Voice of America
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