[Congressional Record Volume 144, Number 137 (Monday, October 5, 1998)]
[House]
[Pages H9480-H9484]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
MONEY LAUNDERING AND FINANCIAL CRIMES STRATEGY ACT OF 1998
Mr. LEACH. Mr. Speaker, I move to suspend the rules and pass the bill
(H.R. 1756) to amend chapter 53 of title 31, United States Code, to
require the development and implementation by the Secretary of the
Treasury of a national money laundering and related financial crimes
strategy to combat money laundering and related financial crimes, and
for other purposes, as amended.
The Clerk read as follows:
H.R. 1756
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Money Laundering and
Financial Crimes Strategy Act of 1998''.
SEC. 2. MONEY LAUNDERING AND RELATED FINANCIAL CRIMES.
(a) In General.--Chapter 53 of title 31, United States Code
is amended by adding at the end the following new subchapter:
``SUBCHAPTER III--MONEY LAUNDERING AND RELATED FINANCIAL CRIMES
``Sec. 5340. Definitions
``For purposes of this subchapter, the following
definitions shall apply:
``(1) Department of the treasury law enforcement
organizations.--The term `Department of the Treasury law
enforcement organizations' has the meaning given to such term
in section 9703(p)(1).
``(2) Money laundering and related financial crime.--The
term `money laundering and related financial crime' means an
offense under subchapter II of this chapter, chapter II of
title I of Public Law 91-508 (12 U.S.C. 1951, et seq.;
commonly referred to as the `Bank Secrecy Act'), or section
1956, 1957, or 1960 of title 18 or any related Federal,
State, or local criminal offense.
``(3) Secretary.--The term `Secretary' means the Secretary
of the Treasury.
``(4) Attorney general.--The term `Attorney General' means
the Attorney General of the United States.
``Part 1--National Money Laundering and Related Financial Crimes
Strategy
``Sec. 5341. National money laundering and related financial
crimes strategy
``(a) Development and Transmittal to Congress.--
``(1) Development.--The President, acting through the
Secretary and in consultation with the Attorney General,
shall develop a national strategy for combating money
laundering and related financial crimes.
``(2) Transmittal to congress.--By February 1 of 1999,
2000, 2001, 2002, and 2003, the President shall submit a
national strategy developed in accordance with paragraph (1)
to the Congress.
``(3) Separate presentation of classified material.--Any
part of the strategy that involves information which is
properly classified under criteria established by Executive
Order shall be submitted to the Congress separately in
classified form.
``(b) Development of Strategy.--The national strategy for
combating money laundering and related financial crimes shall
address any area the President, acting through the Secretary
and in consultation with the Attorney General, considers
appropriate, including the following:
``(1) Goals, objectives, and priorities.--Comprehensive,
research-based goals, objectives, and priorities for reducing
money laundering and related financial crime in the United
States.
``(2) Prevention.--Coordination of regulatory and other
efforts to prevent the exploitation of financial systems in
the United States for money laundering and related financial
crimes, including a requirement that the Secretary shall--
``(A) regularly review enforcement efforts under this
subchapter and other provisions of law and, when appropriate,
modify existing regulations or prescribe new regulations for
purposes of preventing such criminal activity; and
``(B) coordinate prevention efforts and other enforcement
action with the Board of Governors of the Federal Reserve
System, the Securities and Exchange Commission, the Federal
Trade Commission, other Federal banking agencies, the
National Credit Union Administration Board, and such other
[[Page H9481]]
Federal agencies as the Secretary, in consultation with the
Attorney General, determines to be appropriate.
``(3) Detection and prosecution initiatives.--A description
of operational initiatives to improve detection and
prosecution of money laundering and related financial crimes
and the seizure and forfeiture of proceeds and
instrumentalities derived from such crimes.
``(4) Enhancement of the role of the private financial
sector in prevention.--The enhancement of partnerships
between the private financial sector and law enforcement
agencies with regard to the prevention and detection of money
laundering and related financial crimes, including providing
incentives to strengthen internal controls and to adopt on an
industrywide basis more effective policies.
``(5) Enhancement of intergovernmental cooperation.--The
enhancement of--
``(A) cooperative efforts between the Federal Government
and State and local officials, including State and local
prosecutors and other law enforcement officials; and
``(B) cooperative efforts among the several States and
between State and local officials, including State and local
prosecutors and other law enforcement officials,
for financial crimes control which could be utilized or
should be encouraged.
``(6) Project and budget priorities.--A 3-year projection
for program and budget priorities and achievable projects for
reductions in financial crimes.
``(7) Assessment of funding.--A complete assessment of how
the proposed budget is intended to implement the strategy and
whether the funding levels contained in the proposed budget
are sufficient to implement the strategy.
``(8) Designated areas.--A description of geographical
areas designated as `high-risk money laundering and related
financial crime areas' in accordance with, but not limited
to, section 5342.
``(9) Persons consulted.--Persons or officers consulted by
the Secretary pursuant to subsection (d).
``(10) Data regarding trends in money laundering and
related financial crimes.--The need for additional
information necessary for the purpose of developing and
analyzing data in order to ascertain financial crime trends.
``(11) Improved communications systems.--A plan for
enhancing the compatibility of automated information and
facilitating access of the Federal Government and State and
local governments to timely, accurate, and complete
information.
``(c) Effectiveness Report.--At the time each national
strategy for combating financial crimes is transmitted by the
President to the Congress (other than the 1st transmission of
any such strategy) pursuant to subsection (a), the Secretary
shall submit a report containing an evaluation of the
effectiveness of policies to combat money laundering and
related financial crimes.
``(d) Consultations.--In addition to the consultations
required under this section with the Attorney General, in
developing the national strategy for combating money
laundering and related financial crimes, the Secretary shall
consult with--
``(1) the Board of Governors of the Federal Reserve System
and other Federal banking agencies and the National Credit
Union Administration Board;
``(2) State and local officials, including State and local
prosecutors;
``(3) the Securities and Exchange Commission;
``(4) the Commodities and Futures Trading Commission;
``(5) the Director of the Office of National Drug Control
Policy, with respect to money laundering and related
financial crimes involving the proceeds of drug trafficking;
``(6) the Chief of the United States Postal Inspection
Service;
``(7) to the extent appropriate, State and local officials
responsible for financial institution and financial market
regulation;
``(8) any other State or local government authority, to the
extent appropriate;
``(9) any other Federal Government authority or
instrumentality, to the extent appropriate; and
``(10) representatives of the private financial services
sector, to the extent appropriate.
``Sec. 5342. High-risk money laundering and related financial
crime areas
``(a) Findings and Purpose.--
``(1) Findings.--The Congress finds the following:
``(A) Money laundering and related financial crimes
frequently appear to be concentrated in particular geographic
areas, financial systems, industry sectors, or financial
institutions.
``(B) While the Secretary has the responsibility to act
with regard to Federal offenses which are being committed in
a particular locality or are directed at a single
institution, because modern financial systems and
institutions are interconnected to a degree which was not
possible until recently, money laundering and other related
financial crimes are likely to have local, State, national,
and international effects wherever they are committed.
``(2) Purpose and objective.--It is the purpose of this
section to provide a mechanism for designating any area where
money laundering or a related financial crime appears to be
occurring at a higher than average rate such that--
``(A) a comprehensive approach to the problem of such crime
in such area can be developed, in cooperation with State and
local law enforcement agencies, which utilizes the authority
of the Secretary to prevent such activity; or
``(B) such area can be targeted for law enforcement action.
``(b) Element of National Strategy.--The designation of
certain areas as areas in which money laundering and related
financial crimes are extensive or present a substantial risk
shall be an element of the national strategy developed
pursuant to section 5341(b).
``(c) Designation of Areas.--
``(1) Designation by secretary.--The Secretary, after
taking into consideration the factors specified in subsection
(d), shall designate any geographical area, industry, sector,
or institution in the United States in which money laundering
and related financial crimes are extensive or present a
substantial risk as a `high-risk money laundering and related
financial crimes area'.
``(2) Case-by-case determination in consultation with the
attorney general.--In addition to the factors specified in
subsection (d), any designation of any area under paragraph
(1) shall be made on the basis of a determination by the
Secretary, in consultation with the Attorney General, that
the particular area, industry, sector, or institution is
being victimized by, or is particularly vulnerable to, money
laundering and related financial crimes.
``(3) Specific initiatives.--Any head of a department,
bureau, or law enforcement agency, including any State or
local prosecutor, involved in the detection, prevention, and
suppression of money laundering and related financial crimes
and any State or local official or prosecutor may submit--
``(A) a written request for the designation of any area as
a high-risk money laundering and related financial crimes
area; or
``(B) a written request for funding under section 5351 for
a specific prevention or enforcement initiative, or to
determine the extent of financial criminal activity, in an
area.
``(d) Factors.--In considering the designation of any area
as a high-risk money laundering and related financial crimes
area, the Secretary shall, to the extent appropriate and in
consultation with the Attorney General, take into account the
following factors:
``(1) The population of the area.
``(2) The number of bank and nonbank financial institution
transactions which originate in such area or involve
institutions located in such area.
``(3) The number of stock or commodities transactions which
originate in such area or involve institutions located in
such area.
``(4) Whether the area is a key transportation hub with any
international ports or airports or an extensive highway
system.
``(5) Whether the area is an international center for
banking or commerce.
``(6) The extent to which financial crimes and financial
crime-related activities in such area are having a harmful
impact in other areas of the country.
``(7) The number or nature of requests for information or
analytical assistance which--
``(A) are made to the analytical component of the
Department of the Treasury; and
``(B) originate from law enforcement or regulatory
authorities located in such area or involve institutions or
businesses located in such area or residents of such area.
``(8) The volume or nature of suspicious activity reports
originating in the area.
``(9) The volume or nature of currency transaction reports
or reports of cross-border movements of currency or monetary
instruments originating in, or transported through, the area.
``(10) Whether, and how often, the area has been the
subject of a geographical targeting order.
``(11) Observed changes in trends and patterns of money
laundering activity.
``(12) Unusual patterns, anomalies, growth, or other
changes in the volume or nature of core economic statistics
or indicators.
``(13) Statistics or indicators of unusual or unexplained
volumes of cash transactions.
``(14) Unusual patterns, anomalies, or changes in the
volume or nature of transactions conducted through financial
institutions operating within or outside the United States.
``(15) The extent to which State and local governments and
State and local law enforcement agencies have committed
resources to respond to the financial crime problem in the
area and the degree to which the commitment of such resources
reflects a determination by such government and agencies to
address the problem aggressively.
``(16) The extent to which a significant increase in the
allocation of Federal resources to combat financial crimes in
such area is necessary to provide an adequate State and local
response to financial crimes and financial crime-related
activities in such area.
``Part 2--Financial Crime-Free Communities Support Program
``Sec. 5351. Establishment of financial crime-free
communities support program
``(a) Establishment.--The Secretary of the Treasury, in
consultation with the Attorney General, shall establish a
program to support local law enforcement efforts in the
development and implementation of a program for the
detection, prevention, and suppression of money laundering
and related financial crimes.
[[Page H9482]]
``(b) Program.--In carrying out the program, the Secretary
of the Treasury, in consultation with the Attorney General,
shall--
``(1) make and track grants to grant recipients;
``(2) provide for technical assistance and training, data
collection, and dissemination of information on state-of-the-
art practices that the Secretary determines to be effective
in detecting, preventing, and suppressing money laundering
and related financial crimes; and
``(3) provide for the general administration of the
program.
``(c) Administration.--The Secretary shall appoint an
administrator to carry out the program.
``(d) Contracting.--The Secretary may employ any necessary
staff and may enter into contracts or agreements with Federal
and State law enforcement agencies to delegate authority for
the execution of grants and for such other activities
necessary to carry out this chapter.
``Sec. 5352. Program authorization
``(a) Grant Eligibility.--To be eligible to receive an
initial grant or a renewal grant under this part, a State or
local law enforcement agency or prosecutor shall meet each of
the following criteria:
``(1) Application.--The State or local law enforcement
agency or prosecutor shall submit an application to the
Secretary in accordance with section 5353(a)(2).
``(2) Accountability.--The State or local law enforcement
agency or prosecutor shall--
``(A) establish a system to measure and report outcomes--
``(i) consistent with common indicators and evaluation
protocols established by the Secretary, in consultation with
the Attorney General; and
``(ii) approved by the Secretary;
``(B) conduct biennial surveys (or incorporate local
surveys in existence at the time of the evaluation) to
measure the progress and effectiveness of the coalition; and
``(C) provide assurances that the entity conducting an
evaluation under this paragraph, or from which the applicant
receives information, has experience in gathering data
related to money laundering and related financial crimes.
``(b) Grant Amounts.--
``(1) Grants.--
``(A) In general.--Subject to subparagraph (D), for a
fiscal year, the Secretary of the Treasury, in consultation
with the Attorney General, may grant to an eligible applicant
under this section for that fiscal year, an amount determined
by the Secretary of the Treasury, in consultation with the
Attorney General, to be appropriate.
``(B) Suspension of grants.--If such grant recipient fails
to continue to meet the criteria specified in subsection (a),
the Secretary may suspend the grant, after providing written
notice to the grant recipient and an opportunity to appeal.
``(C) Renewal grants.--Subject to subparagraph (D), the
Secretary may award a renewal grant to a grant recipient
under this subparagraph for each fiscal year following the
fiscal year for which an initial grant is awarded.
``(D) Limitation.--The amount of a grant award under this
paragraph may not exceed $750,000 for a fiscal year.
``(2) Grant awards.--
``(A) In general.--Except as provided in subparagraph (B),
the Secretary may, with respect to a community, make a grant
to 1 eligible applicant that represents that community.
``(B) Exception.--The Secretary may make a grant to more
than 1 eligible applicant that represent a community if--
``(i) the eligible coalitions demonstrate that the
coalitions are collaborating with one another; and
``(ii) each of the coalitions has independently met the
requirements set forth in subsection (a).
``(c) Condition Relating to Proceeds of Asset
Forfeitures.--
``(1) In general.--No grant may be made or renewed under
this part to any State or local law enforcement agency or
prosecutor unless the agency or prosecutor agrees to donate
to the Secretary of the Treasury for the program established
under this part any amount received by such agency or
prosecutor (after the grant is made) pursuant to any criminal
or civil forfeiture under chapter 46 of title 18, United
States Code, or any similar provision of State law.
``(2) Scope of application.--Paragraph (1) shall not apply
to any amount received by a State or local law enforcement
agency or prosecutor pursuant to any criminal or civil
forfeiture referred to in such paragraph in excess of the
aggregate amount of grants received by such agency or
prosecutor under this part.
``(d) Rolling Grant Application Periods.--In establishing
the program under this part, the Secretary shall take such
action as may be necessary to ensure, to the extent
practicable, that--
``(1) applications for grants under this part may be filed
at any time during a fiscal year; and
``(2) some portion of the funds appropriated under this
part for any such fiscal year will remain available for grant
applications filed later in the fiscal year.
``Sec. 5353. Information collection and dissemination with
respect to grant recipients
``(a) Applicant and Grantee Information.--
``(1) Application process.--The Secretary shall issue
requests for proposal, as necessary, regarding, with respect
to the grants awarded under section 5352, the application
process, grant renewal, and suspension or withholding of
renewal grants. Each application under this paragraph shall
be in writing and shall be subject to review by the
Secretary.
``(2) Reporting.--The Secretary shall, to the maximum
extent practicable and in a manner consistent with applicable
law, minimize reporting requirements by a grant recipient and
expedite any application for a renewal grant made under this
part.
``(b) Activities of Secretary.--The Secretary may--
``(1) evaluate the utility of specific initiatives relating
to the purposes of the program;
``(2) conduct an evaluation of the program; and
``(3) disseminate information described in this subsection
to--
``(A) eligible State local law enforcement agencies or
prosecutors; and
``(B) the general public.
``Sec. 5354. Grants for fighting money laundering and related
financial crimes
``(a) In General.-- After the end of the 1-year period
beginning on the date the 1st national strategy for combating
money laundering and related financial crimes is submitted to
the Congress in accordance with section 5341, and subject to
subsection (b), the Secretary may review, select, and award
grants for State or local law enforcement agencies and
prosecutors to provide funding necessary to investigate and
prosecute money laundering and related financial crimes in
high-risk money laundering and related financial crime areas.
``(b) Special Preference.--Special preference shall be
given to applications submitted to the Secretary which
demonstrate collaborative efforts of 2 or more State and
local law enforcement agencies or prosecutors who have a
history of Federal, State, and local cooperative law
enforcement and prosecutorial efforts in responding to such
criminal activity.
``Sec. 5355. Authorization of appropriations
``There are authorized to be appropriated the following
amounts for the following fiscal years to carry out the
purposes of this subchapter:
The amount authorized is:
$5,000,000.............................................................
$7,500,000.............................................................
$10,000,000............................................................
$12,500,000............................................................
$15,000,000.''.........................................................
(b) Clerical Amendment.--The table of subchapters for
chapter 53 of title 31, United States Code, is amended by
adding at the end the following item:
``SUBCHAPTER III--MONEY LAUNDERING AND RELATED FINANCIAL CRIMES
``5340. Definitions.
``Part 1--National Money Laundering and Related Financial Crimes
Strategy
``5341. National money laundering and related financial crimes
strategy.
``5342. High-risk money laundering and related financial crime areas.
``Part 2--Financial Crime-Free Communities Support Program
``5351. Establishment of financial crime-free communities support
program.
``5352. Program authorization.
``5353. Information collection and dissemination with respect to grant
recipients.
``5354. Grants for fighting money laundering and related financial
crimes.
``5355. Authorization of appropriations.''.
(c) Report and Recommendations.--Before the end of the 5-
year period beginning on the date the 1st national strategy
for combating money laundering and related financial crimes
is submitted to the Congress pursuant to section 5341(a)(1)
of title 31, United States Code (as added by section 2(a) of
this Act), the Secretary of the Treasury, in consultation
with the Attorney General, shall submit a report to the
Committee on Banking and Financial Services and the Committee
on the Judiciary of the House of Representatives and the
Committee on Banking, Housing, and Urban Affairs and the
Committee on the Judiciary of the Senate on the effectiveness
of and the need for the designation of areas, under section
5342 of title 31, United States Code (as added by such
section 2(a)), as high-risk money laundering and related
financial crime areas, together with recommendations for such
legislation as the Secretary and the Attorney General may
determine to be appropriate to carry out the purposes of such
section.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Iowa (Mr. Leach) and the gentlewoman from New York (Ms. Velazquez) each
will control 20 minutes.
The Chair recognizes the gentleman from Iowa (Mr. Leach).
Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume.
(Mr. LEACH asked and was given permission to revise and extend his
remarks.)
Mr. LEACH. Mr. Speaker, H.R. 1756, the Money Laundering and Financial
Crimes Strategy Act of 1998, directs the Secretary of the Treasury to
create a national strategy for combatting
[[Page H9483]]
money laundering and other financial crimes by coordinating Federal,
State and local efforts and resources.
The legislation provides for the designation of high-risk money
laundering areas for the purpose of providing these localities with
increased Federal assistance and access to information related to money
laundering and other financial crimes.
The bill also provides a mechanism to fund money laundering
investigations conducted by State and local law enforcement agencies.
Efforts by law enforcement officials to combat money laundering, the
process by which criminal elements seek to legitimize the proceeds of
their illegal activities, have taken on particular urgency as
operations of large-scale criminal organizations in the United States
and abroad have grown increasingly sophisticated.
Money laundering and related financial crimes are often inextricably
tied to the illegal drug trade that has ravaged so many communities in
rural as well as urban sectors of America. State and local law
enforcement officials and prosecutors, particularly in less urbanized
areas, often find themselves overwhelmed by the sheer size and scope of
the criminal enterprises arrayed against them and encounter particular
difficulty in following the complex money trails by which these
organizations conceal and launder their ill-gotten gains.
Recent law enforcement initiatives have demonstrated that working
partnerships among Federal, State and local agencies can yield
impressive results in the fight against drug-related money laundering.
Perhaps the best example of the benefits of a coordinated law
enforcement response to money laundering can be found in the Treasury
Department's successful use of a geographic targeting order, or GTO, in
1996 and 1997 to combat money laundering in a segment of the money
transmitter industry in the New York City metropolitan area.
H.R. 1756 is designed to apply the lessons of the New York GTO to
other communities in other parts of the country by calling for the
formulation of a national strategy for combatting money laundering and
related financial crimes that emphasizes the importance of coordination
and information sharing among Federal, State and local authorities and
by singling out localities in which money laundering is particularly
widespread for increased Federal law enforcement support and financial
assistance.
The bill directs the Secretary of the Treasury, in consultation with
the Attorney General, to assist such localities by providing grants,
technical assistance and training in information on best practices to
support their efforts to detect and prevent money laundering and
related financial crimes.
In closing, Mr. Speaker, let me say that H.R. 1756 is another example
of the spirit of bipartisanship and comity that I believe characterized
the work of the Committee on Banking, Housing and Urban Affairs in this
particular area. Introduced by the gentlewoman from New York (Ms.
Velazquez) and approved by the committee by a voice vote, the
legislation commands broad bipartisan support.
Companion legislation introduced by the Senator from Iowa, Mr.
Grassley, is now pending in the other body.
In addition to congratulating the gentlewoman from New York (Ms.
Velazquez) in developing and championing this legislation, I would like
to commend the ranking minority Member, the gentleman from New York
(Mr. LaFalce), and the gentleman from Minnesota (Mr. Vento) for their
invaluable assistance in moving this important bill through our
committee.
Mr. Speaker, I reserve the balance of my time.
Ms. VELAZQUEZ. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I would like to begin by thanking the chairman, the
gentleman from Iowa (Mr. Leach), and the gentleman from New York (Mr.
LaFalce) for their help in passing this important legislation. I would
also like to thank Queens District Attorney Richard Brown who was
helpful in crafting this bill.
The Money Laundering and Financial Crimes Strategy Act is the result
of many long years of hard work, and Congress' consideration to date
marks an important step in the war against crime.
As we heard earlier, there have been many successful efforts to
combat money laundering. What many of those stories overlooked is that
this criminal activity has been a plague in communities, like the one
that I represent, for years. There are many great local law enforcement
officials who have been working hard and who have been successful at
stopping these criminals.
To many, money laundering seems like something from a spy novel. To
the families and the communities that I represent, these criminal
enterprises are a reality. The fact remains that these criminals are
attracted to low-income and immigrant communities. That is how I became
involved.
About 4 years ago, I began working with the Queens District
Attorney's Office and residents of Jackson Heights in Queens to address
the growing problem of money laundering in that area.
There is a section of the Roosevelt Avenue in Jackson Heights that
law enforcement officials call Ground Zero. That neighborhood is home
to many hard-working, low-income families. The tragedy is that it is
also home to hundreds of money wire services that transfers up to $1.3
billion in illegal drug proceeds to South America.
While legitimate companies struggle to provide valuable services to
the families in those neighborhoods, neighborhoods that do not have
access to banks or other financial institutions, criminals set up shop
in businesses ranging from beeper outlets to travel agencies to
convenience stores. Instead of helping to create jobs, economic
development and a better way of life for my constituents, they bring
fear, violence and drugs. For that reason, the DA's office approached
me for help.
Working with them, I conceived the Money Laundering and Financial
Crimes Strategy Act. That was 3 years ago. The main goal of my
legislation is to provide local law enforcement and prosecutors the
hand they need to combat these criminal syndicates.
For a moment, just consider the sheer size and changing nature of
money laundering enterprises. Then consider the burden on local law
enforcement officials. They need our help.
Some local police departments and prosecutors are expected to battle
crime networks with budgets bigger than some States. They must fight
crime syndicates that can relocate anywhere at any time. For that
reason, it is time that Washington reach out and become a real partner
in this war. My legislation directs the Department of the Treasury, in
consultation with the Attorney General, to develop a national strategy
to combat money laundering and related financial crimes.
{time} 1800
The strategy would include goals for reducing money laundering as
well as coordinated regulatory efforts to prevent exploitation of the
financial sector in the United States. Other elements are operational
initiatives to improve the detection of money laundering, and
intergovernmental initiatives and actions to fight these crimes.
The key component of this legislation is the designation of areas as
high risk money laundering areas. Any area designated a high risk area
would be eligible for increased Federal law enforcement assistance and
access to information sharing. These localities would also be eligible
for Federal financial crimes grants.
The Money Laundering and Financial Crimes Strategy Act would bring
everyone combating these financial crimes to the table for
consultation. It would also coordinate and strengthen relationships
formed with those fighting on the front lines. Most importantly,
greater attention would be paid to areas at high risk of money
laundering activity. Participation by local law enforcement and even
the private sector in those areas would be fostered. If localities are
going to keep winning, we must give them the best tools.
Mr. Speaker, I yield back the balance of my time.
Mr. LEACH. Mr. Speaker, I yield myself such time as I may consume. In
conclusion, let me just state that this is a very subtle bill that
would not be before the House if it were not for the commitment as well
as the persistence of the gentlewoman from New York (Ms. Velazquez).
Her hard work and
[[Page H9484]]
thoughtfulness in my judgment deserve very serious commendation in this
body.
Mr. LaFALCE. I rise to urge the adoption of H.R. 1756, the Money
Laundering and Financial Crimes Strategy Act of 1998, legislation
sponsored by Nydia Velazquez, a distinguished and hard-working Member
of the Banking Committee.
Mr. Speaker, in separate legislation considered today in the House,
Members were asked to support amendments to the Bank Secrecy Act,
thereby authorizating additional steps to combat money laundering
activities. As a result of that bill and a host of other amendments to
the Bank Secrecy Act enacted in recent years, H.R. 1756 is logical and
much needed because it requires the Secretary of the Treasury to
develop and implement a national strategy for combating money
laundering and related financial crimes. Further, to the extent funds
can be appropriated in the future, H.R. 1756 establishes a federal
funding program to support efforts by state and local law enforcement
authorities to investigate and prosecute money laundering practices.
The adoption of the bill is necessary because I am pleased to report
to the House that we have reached the point where we need a
comprehensive strategy specifically focusing on the federal
government's money laundering initiatives. We have on the books
significant reporting requirements and numerous deterrence programs. We
have seen anti-money laundering statutes used as the basis for the
successful prosecution of criminal and, most recently, we have
witnessed the use of stings and other investigative tactics designed
solely to strike at the criminal's ability to legitimize illegal
profits by washing them through the financial system.
Because of our success, we must now develop a national strategy to
ensure that the high demand for the limited resources available to
combat money laundering are properly targeted to those activities that
return the best results. H.R. 1756 accomplishes this purposes and
deserves the full support of the House of Representatives.
I would be remiss if I did not comment on the role the sponsor of the
bill has played in the effort to combat financial crime. Congresswoman
Nydia Velazquez did not sit by when money wire transfer businesses in
her New York Congressional District were identified as suspected money
laundering entities, transferring huge amounts of cash into the
financial system without filing the required reports or taking the
appropriate actions required by the ``know your customer'' standards.
Congresswoman Velazquez personally participated in the law enforcement
effort to shut down the unlawful operations and today's bill is but
another example of ongoing efforts to protect the residents of her
Congressional community.
I also commend Chairman Leach for scheduling the legislation for the
consideration of the Banking Committee and for working with me to bring
this important legislation to the floor of the House today.
I strongly urge the adoption of this much needed legislation.
Mr. Speaker, I have no further requests for time, and I yield back
the balance of my time.
The SPEAKER pro tempore (Mr. Miller of Florida). The question is on
the motion offered by the gentleman from Iowa (Mr. Leach) that the
House suspend the rules and pass the bill, H.R. 1756, as amended.
The question was taken; and (two-thirds having voted in favor
thereof) the rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
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