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)
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Source: Voice of America
.