[Congressional Record Volume 141, Number 183 (Friday, November 17, 1995)]
[Extensions of Remarks]
[Page E2215]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  TRAVELERS EXPRESS WORKS WITH THE IRS

                                 ______


                          HON. BRUCE F. VENTO

                              of minnesota

                    in the house of representatives

                       Friday, November 17, 1995

  Mr. VENTO. Mr. Speaker, few companies willingly invite the Internal 
Revenue Service to visit their facilities, and fewer yet receive money 
from the IRS, but recently a Minnesota company, Travelers Express, was 
called on by the IRS to accept a check for $100,000. This check was the 
result of Travelers Express' quick assistance in identifying and 
notifying the IRS about an international money-laundering operation.
  Travelers Express is the Nation's largest money order company issuing 
more than 240 million money orders a year. These money orders are sold 
in over 42,000 retail and financial institution locations throughout 
the United States. Travelers Express has been working for a number of 
years on ways to detect suspicious money order transactions. Over a 
year ago, Travelers Express noticed a large number of money orders 
clearing through their Minnesota facility which appeared to be 
suspicious. These money orders were all made out to the same 
individual, cleared through a bank in Colombia, and all bore a yellow 
fluorescent symbol, such as a rabbit, a tall ship, or a box containing 
a face--these symbols are referred to as ``smurf stamps'' by law 
enforcement.
  Once detecting these suspicious money orders, Travelers Express 
immediately contacted the local IRS, which began an investigation. The 
IRS found that over 1,300 money orders had been purchased at over 150 
agent locations throughout New York City and New Jersey. The money 
orders, totaling over $650,000, had been purchased over a several month 
period and had been shipped to Colombia. They were deposited in a 
Colombian bank, and then presented for payment to a United States bank. 
The U.S. bank then presented them for payment to Travelers Express. 
Based upon the suspicious indicators and detailed conversations with 
the IRS and the U.S. Attorney's Office, Travelers Express decided to 
refuse payment on the items. The IRS was able to seize the money, which 
led to the $100,000 reward for Travelers Express.
  This is an excellent example of Government and business working 
cooperatively together in order to stem the tide of money laundering. 
Travelers Express has been working for a number of years to improve its 
operations to prevent the use of money orders in money laundering 
schemes. While this case was a significant money laundering operation, 
the number of Travelers Express money orders involved was less than 
two-tenths of one percent of the money orders sold on any given day.
  I'd like to commend Travelers Express for their diligence in the 
fight against money laundering and to congratulate them on their 
$100,000 reward. I hope that this example encourages other financial 
intermediaries and businesses to keep a watchful eye on possible money 
laundering schemes and to work in partnership with the Federal 
Government to crack down on the illicit use of money.

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