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
.