[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 495 Engrossed in House (EH)]


                 In the House of Representatives, U.S.,

                                                         June 19, 2000.
Whereas the International Monetary Fund has estimated the amount of 
        international money laundering to be at least $600,000,000,000 annually 
        representing 2 to 5 percent of the world's gross domestic product;
Whereas money laundering is a crucial adjunct to the underlying crimes that 
        generate money, including drug trafficking, kidnapping, murder, 
        international terrorism, and other forms of violent crime;
Whereas money laundering and foreign corruption facilitate each other, 
        undermining the efforts of the United States to promote democratic 
        institutions and economic development around the world;
Whereas, in today's open and global financial markets, which are characterized 
        by a high mobility of funds and the rapid development of new payment 
        technologies, the tools for laundering the proceeds of serious crimes 
        have become more sophisticated and readily available;
Whereas recent years have witnessed a sharp increase in the number of 
        jurisdictions offering financial services without appropriate controls 
        or regulation and which are protected by strict banking secrecy 
        legislation which facilitates the anonymous protection for illegal 
        assets in certain countries or territories making them even more 
        attractive for money laundering;
Whereas the proliferation of such noncooperative countries or territories which 
        do not, or only marginally, participate in international cooperation 
        against financial crime, also exacerbates competition between these 
        centers and so contributes to worsen existing practices and makes more 
        difficult the maintenance of anti-money laundering standards in other 
        countries;
Whereas, in order to ensure the stability of the international financial system 
        and effective prevention of money laundering, all financial centers in 
        the world should have comprehensive control, regulation, and supervision 
        systems, and that all financial intermediaries and agents be subject to 
        strict obligations, notably as regards the prevention, detection, and 
        punishment of money laundering;
Whereas the Financial Action Task Force on Money Laundering (FATF), of which the 
        United States is a founding member, was established for the purpose of 
        developing and promoting policies to combat international money 
        laundering;
Whereas the FATF, consisting of 26 jurisdictions including the United States and 
        two international organizations, originally issued in 1990 and revised 
        in 1996 40 recommendations designed for universal application that set 
        out the basic framework for antimoney laundering efforts covering the 
        criminal justice system and law enforcement, the financial system and 
        its regulation, and international cooperation;
Whereas the FATF has determined the criteria for defining noncooperative 
        countries or territories consistent with the 40 recommendations, and 
        FATF members have agreed on a process for identifying noncooperative 
        jurisdictions to include all countries and territories, both inside and 
        outside FATF membership, whose detrimental practices seriously and 
        unjustifiably hamper the fight against international money laundering;
Whereas the FATF has reported that the list of noncooperative countries or 
        territories should include several subcategories of noncooperative 
        countries or territories which could be as follows: clearly 
        noncooperative with severe deficiencies in many areas, partly 
        noncooperative with impediments in various areas, and de facto 
        noncooperative with no significant impediments in laws and regulations 
        but ineffective regime in practice; and
Whereas the FATF is gathering and analyzing all relevant information necessary 
        for the publication of lists of noncooperative jurisdictions: Now, 
        therefore, be it
    Resolved, That it is the sense of the House that--
            (1) the United States should continue to actively and publicly 
        support the objectives of the FATF with regard to combating 
        international money laundering;
            (2) the FATF should identify noncooperative jurisdictions in as 
        expeditious a manner as possible and publicly release a list directly 
        naming those jurisdictions identified;
            (3) the United States should support the public release of the list 
        naming noncooperative jurisdictions identified by the FATF;
            (4) the United States should encourage the adoption of the necessary 
        international action to encourage compliance by the identified 
        noncooperative jurisdictions; and
            (5) the United States should take the necessary countermeasures to 
        protect the United States economy against money of unlawful origin and 
        encourage other nations to do the same.
            Attest:

                                                                          Clerk.