NEW YORK (AP) -- The Clinton administration intends to ask Congress for
new power to combat money laundering, including the authority to ban
financial transactions between U.S. institutions and offshore financial
centers, The New York Times reported today.
The administration wants to tighten money-laundering laws after
authorities said the Bank of New York served as a conduit for about $7
billion in Russian money, some of it believed to be from illegal
activities.
Treasury Secretary Lawrence Summers was to detail the proposed legislation
in a speech to bankers today, the Times said, citing unidentified
administration officials.
Among other things, the Treasury Department wants the power to ask
American companies to collect data on all kinds of transactions with an
offshore bank or financial company.
In cases where foreign governments shield banks from investigation, the
department wants the authority to cut them off from the U.S. financial
system without seeking Congressional approval.
Treasury officials have already begun informing U.S. banks of foreign
banks or nations that repeatedly refuse to abide by generally accepted
standards to protect against money laundering.
Russia, Colombia and Nigeria are identified as being among the biggest
sources of illicit money, according to the speech Summers was expected to
deliver. The islands of Dominica, Antigua and Nauru were among the biggest
destination spots for such funds.
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Eric Michael Cordian 0+
O:.T:.O:. Mathematical Munitions Division
"Do What Thou Wilt Shall Be The Whole Of The Law"
