Senator Levin Criticizes Separation Of Money Laundering And Terrorism

by Mike Godfrey, Tax-News.com, Washington

18 October 2001

Despite attempts to present a bipartisan united front in the face of the international war against terrorism, divisions are forming between the Democrat controlled Senate and the Republican majority House over the exclusion of anti-money laundering proposals from new anti-terrorism legislation.

Although the Senate has passed a single comprehensive bill, in the House of Representatives, the money laundering provisions have been dropped from the bill, to be dealt with at a later date. Carl Levin, the author of the original money laundering proposals which were attached to the anti-terror bill has objected strongly to this move, claiming that it could represent 'the death warrent for strong-anti money laundering legislation.'

Senator Levin's bill, if passed, would give the Treasury Secretary powers to require special record keeping, and would make it a crime to smuggle more than $10,000 over US borders. However, the US government has been under pressure to amend or abandon these provisions from conservative groups and finance industry representatives, who claim that the bill is intended to stifle competition within the sector, and increase the burden on already over-worked banking staff.

Democrats fear that if the anti-money laundering provisions are left off the final version of the new terrorism bill, they will become substantially watered down as the country's deep-pocketed finance sector continues to exert pressure. One Democrat warned that there was 'potentially a lot of mischief to be played' with stand-alone money laundering legislation.

The White House, however, has stressed that its main concern is getting the anti-terrorism measures passed into law as quickly and efficiently as possible, not long-standing ideological differences between the factions. A spokesperson for the White House, Claire Buchan, clarified the position of the Bush administration earlier this week: 'If it's possible to move them together quickly, then we'd like to see them together,' she explained. 'If not, then we'd like to see the counter-terrorism bill done quickly.'

http://www.nj.com/newsflash/index.ssf?/cgi-free/getstory_ssf.cgi?g8990_BC_MI--TerroristMoney&&news&newsflash-financial http://www.nytimes.com/2001/10/17/national/17MONE.html?ex=1003982400&en=8cbfc1c9a64edba8&ei=5040&partner=MOREOVER

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