US Senate Reviews Anti-Money Laundering Progress

by Mike Godfrey, Tax-News.com, Washington

31 January 2002

At a Senate Banking Committee hearing on Tuesday, US lawmakers examined the progress made so far on the country's anti-money laundering drive.

'We have put in place an array of tools necessary to trace and interdict the funds on which terrorists...rely to pay for their operations,' Banking Committee Chairman Paul Sarbanes explained before the meeting. 'This hearing will examine what regulatory and enforcement efforts are underway to bring the new tools into quick and effective operation.'

Among the topics of discussion on Tuesday were measures undertaken to prevent US banks from dealing with shadowy overseas shell banks, prevention of underground money exchange networks, and the blocking and seizing of around $80 million in suspected terrorist assets since the September 11 attacks.

The hearing agreed that the new measures designed to prevent terrorist groups from laundering money through the country's brokerages, investment banks, and other financial services firms was timely, as the results of a survey conducted recently by Senate investigators have revealed that brokerages had previously been very vulnerable.

Senator Carl Levin, Chair of the Senate Governmental Affairs Committee's Permananent Subcommittee on Investigations, praised the efforts made so far, and observed that this year will be key to the effectiveness of new laws for banks, brokers, and financial service providers.

However, he warned against delaying compliance requirements and making exceptions for any sector of the finance industry, reiterating that final rules for the securities industry must be available by June. 'We don't have the luxury of time,' he explained.

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