[Congressional Record Volume 144, Number 75 (Thursday, June 11, 1998)]
[Senate]
[Pages S6198-S6199]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY:
  S. 2165. A bill to amend title 31 of the United States Code to 
improve methods for preventing financial crimes, and for other 
purposes; to the Committee on Banking, Housing, and Urban Affairs.


                money laundering deterrence act of 1998

 Mr. GRASSLEY. Mr. President, recently, we have seen the 
culmination of one of the most successful undercover operations in 
history by the

[[Page S6199]]

United States Customs Service. This effort, known as ``Operation 
Casablanca,'' has infiltrated and dismantled a group of international 
bankers, mostly in Mexico, who have been laundering drug money. The 
threat of drug trafficking is serious enough. But to have their 
financial advisors leading their effort to facilitate the smuggling of 
illicit narcotics is much worse. Complicit bankers devising schemes can 
make it much easier to move and hide the ill-gotten gains of drug 
cartels.
  As this latest law enforcement operation illustrates, we must be sure 
that we are taking the necessary steps to protect the citizens of our 
nation. We must prevent drug traffickers and organized crime groups 
from obtaining the profits of their illegal activities. Much has been 
done and said about the movement of illegal drugs into the United 
States. But the opposite side of the business does not always get the 
publicity, and is just as important. We need to go after the profits 
from drug sales and other illegal enterprises.
  Last week, Representative Leach, Chairman of the Committee on Banking 
and Financial Services introduced legislation to amend title 31, United 
States Code. The bill H.R. 4005, ``the Money Laundering Deterrence Act 
of 1998,'' would improve methods for preventing financial crimes. And 
as Operation Casablanca shows this legislation, is timely and needed. 
We need to tighten up our financial control capabilities to prevent 
criminal enterprises from abusing our financial and banking systems. 
The bill is supported by the American Banking Association (ABA), the 
Department of the Treasury, the Department of Justice and the Federal 
Reserve. Today, Chairman Leach's bill has already been marked up in the 
House.
  I call for my colleagues to help support this companion legislation. 
I hope this would be a continuation of efforts by Congress to go after 
the growing threat of money laundering not only to our nation, but 
worldwide.
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