[Senate Hearing 108-902]
[From the U.S. Government Publishing Office]



                                                        S. Hrg. 108-902

 
                        POLICIES TO ENFORCE THE
                      BANK SECRECY ACT AND PREVENT
                   MONEY LAUNDERING IN MONEY SERVICES
                   BUSINESSES AND THE GAMING INDUSTRY

=======================================================================

                                HEARING

                               before the

                              COMMITTEE ON
                   BANKING,HOUSING,AND URBAN AFFAIRS
                          UNITED STATES SENATE

                      ONE HUNDRED EIGHTH CONGRESS

                             SECOND SESSION

                                   ON

 EXAMINATION OF THE EFFECTIVENESS OF U.S. POLICIES TO ENFORCE THE BANK 
     SECRECY ACT AND TO PREVENT MONEY LAUNDERING IN MONEY SERVICES 
                   BUSINESSES AND THE GAMING INDUSTRY

                               __________

                           SEPTEMBER 28, 2004

                               __________

  Printed for the use of the Committee on Banking, Housing, and Urban 
                                Affairs


      Available at: http: //www.access.gpo.gov /congress /senate/
                            senate05sh.html



                                 ______

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            COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS

                  RICHARD C. SHELBY, Alabama, Chairman

ROBERT F. BENNETT, Utah              PAUL S. SARBANES, Maryland
WAYNE ALLARD, Colorado               CHRISTOPHER J. DODD, Connecticut
MICHAEL B. ENZI, Wyoming             TIM JOHNSON, South Dakota
CHUCK HAGEL, Nebraska                JACK REED, Rhode Island
RICK SANTORUM, Pennsylvania          CHARLES E. SCHUMER, New York
JIM BUNNING, Kentucky                EVAN BAYH, Indiana
MIKE CRAPO, Idaho                    ZELL MILLER, Georgia
JOHN E. SUNUNU, New Hampshire        THOMAS R. CARPER, Delaware
ELIZABETH DOLE, North Carolina       DEBBIE STABENOW, Michigan
LINCOLN D. CHAFEE, Rhode Island      JON S. CORZINE, New Jersey

             Kathleen L. Casey, Staff Director and Counsel

     Steven B. Harris, Democratic Staff Director and Chief Counsel

                Skip Fischer, Senior Professional Staff

               John O'Hara, Senior Investigative Counsel

              Stephen R. Kroll, Democratic Special Counsel

   Joseph R. Kolinski, Chief Clerk and Computer Systems Administrator

                       George E. Whittle, Editor

                                  (ii)
?

                            C O N T E N T S

                              ----------                              

                      TUESDAY, SEPTEMBER 28, 2004

                                                                   Page

Opening statement of Chairman Shelby.............................     1

Opening statements, comments, or prepared statements of:
    Senator Dole.................................................     2
    Senator Sarbanes.............................................     3
    Senator Bunning..............................................     5
    Senator Carper...............................................    18
    Senator Allard...............................................    22

                               WITNESSES

William J. Fox, Director, Financial Crimes Enforcement Network, 
  U.S. Department of the Treasury................................     5
    Prepared statement...........................................    40
    Response to written questions of Senator Shelby..............    61
Kevin Brown, Commissioner, Small Business/Self-Employed Division, 
  Internal Revenue Service.......................................     8
    Prepared statement...........................................    46
    Response to written questions of:
        Senator Sarbanes.........................................    68
        Senator Carper...........................................    68
Diana L. Taylor, Superintendent of Banks, State of New York......    10
    Prepared statement...........................................    50
Frank J. Fahrenkopf, Jr., President and CEO, American Gaming 
  Association....................................................    25
    Prepared statement...........................................    54
Joseph Cachey, III, Deputy Chief Compliance Officer and Counsel, 
  AML Global Compliance, Western Union Financial Services, Inc...    28
    Prepared statement...........................................    55
Ezra C. Levine, Counsel, the Non-Bank Funds Transmitters Group 
  and Partner, Howery, Simon, Arnold & White, LLP................    30
    Prepared statement...........................................    58
    Response to written questions of Senator Shelby..............    69

              Additional Material Supplied for the Record

Letter to Senator Richard C. Shelby from Frank J. Fahrenkopf, 
  Jr., President and CEO, American Gaming Association, dated 
  October 20, 2004...............................................    72

                                 (iii)


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