Pubdate: Thu, 04 Oct 2001 Source: Wall Street Journal (US) Section: Politics & Policy Copyright: 2001 Dow Jones & Company, Inc. Contact: http://www.wsj.com/ Details: http://www.mapinc.org/media/487 Author: Michael M Phillips WHITE HOUSE SEEKS POWERS TO PREVENT MONEY LAUNDERING BY TERRORIST GROUPS WASHINGTON -- As investigators try to piece together the finances of those behind last month's attacks, Congress is moving to grant the president powers to prevent terrorists, drug dealers and other criminals from moving money through the financial system. Bush administration officials went to Capitol Hill to press for action on money-laundering legislation as part of a broad package of antiterrorism measures. "We are fighting with outdated weapons in the money-laundering arena today," Assistant Attorney General Michael Chertoff said in testimony submitted to the House Financial Services Committee. House lawmakers introduced a bipartisan money-laundering bill Wednesday, and the Senate banking committee is set to take up legislation of its own Thursday. Majority Leader Tom Daschle (D., S.D.) expects that bill to be offered as an amendment when the full Senate considers antiterrorism legislation next week. With the Sept. 11 attacks dominating the political agenda, it seems likely Congress will grant the president at least some of the authority he wants to mine the financial system for clues to terrorists' activities. Among the measures being considered: a.. Making it a crime to launder proceeds of most foreign crimes. Under current law it only is illegal to launder gains from bank fraud, terrorism or drug trafficking. Terrorists sometimes make their money through other crimes, then use it to finance terror operations. a.. Controlling the movement of bulk cash over U.S. borders more stringently. a.. Allowing the federal government to issue administrative subpoenas to get account records from foreign banks that have correspondent banking arrangements with U.S. institutions. a.. Granting the Treasury secretary discretionary authority to impose special controls on suspect foreign financial institutions or transactions, including prohibiting a foreign bank from having a correspondent relationship with a U.S. institution. The banking industry, cool to a similar bill that ultimately foundered in Congress during the past year, is endorsing tighter money-laundering controls this time around. "Obviously we've looked at our position with fresh eyes since Sept. 11," said Edward L. Yingling, chief lobbyist of the American Bankers Association. But bankers, whose institutions handle $2 trillion a day, want a greater role in writing the implementing rules that would accompany the law, and are leery of some provisions in Senate versions of the bill. Some lawmakers also are wary. GOP Sen. Phil Gramm of Texas wants the bill to specify that those affected by the Treasury secretary's broad new authority will be able to appeal those decisions. The administration also supports such "due process" provisions. - --- MAP posted-by: Beth