U.S. to probe cross-border money laundering with Mexico
by: jim kouri | published: 03 12, 2012
During his meeting with U.S. Vice President Joe Biden in Mexico City on Monday, President Felipe Calderon told Biden that the only way to win Mexico's "war with the drug cartels" combat organized crime gangs as well as arms trafficking along the border. He also included in his list of priorities the ceasing of rampant cross-border money laundering, according to a press statement.
"There are a number of tools that can be utilized when it comes to laundering cash domestically and internationally," claims former forensic accountant John Politi, an expert in financial and cyber crime.
Politi told the Law Enforcement Examiner that one such tool is Section 311 of the USA PATRIOT Act of 2001, which authorizes the Secretary of the Treasury to prohibit US financial institutions from maintaining certain accounts for foreign banks if they involve foreign jurisdictions or institutions found to be of primary money laundering concern.
"To make this finding, Treasury officials examine several factors and generally issue proposed rules announcing its intent to apply Section 311 restrictions. At the request of the US Congress, Government Accountability Office analysts reviewed financial and investigative US government documents and met with government officials and representatives of affected bank," Politi said in a phone conversation.
Treasury's informal process to implement Section 311 was consistent with requirements in U.S. law. From 2002 to 2005, Treasury identified 11 cases -- 3 jurisdictions and 8 institutions -- as being of primary money laundering concern and issued proposed rules for 10 of these cases, according to Politi, a former agent with the IRS.
As required, Treasury consulted with the Departments of Justice and State prior to issuing the proposed rules. However, Justice and State officials said that it was difficult for them to effectively assess the evidence on some Section 311 cases because Treasury provided them limited time.
In April 2008, Treasury withdrew two of three notices -- all open for between 3 and 5 years --after the Government Accountability Office discussed the cases with Treasury officials. Contributing to this lag was the absence of required timeframes for completing the action and of written guidance specifying a Treasury office to finalize the actions. Treasury views Section 311 as effective because it isolates target institutions from the US financial system and encourages some foreign governments to strengthen their anti-money laundering authorities, according to GAO analysts.
However, some foreign government officials said that Section 311's implementation precluded their own enforcement or regulatory actions against targeted institutions as U.S. action was unilateral or provided too little information for them to act.
Justice Department officials said that if Section 311's application is viewed as unsubstantiated, some countries may be less likely to cooperate with the U.S. government on other law enforcement matters or sanctions. Treasury officials said they recognized the concerns, but did not believe they diminished Section 311's effectiveness.
add a comment
action items!
The Tennessee Republican Assembly Joins Resolution Against Sen Alexander's National Internet Sales Tax Mandate
03 31, 2013
Republican Leaders in Pennsylvania Hold the Key to School Choice Reform
05 29, 2011
Tell Your Representative to Vote YES on H.R. 1229 Putting the Gulf of Mexico Back to Work Act
05 29, 2011
Stop The Internet Sales Tax
05 13, 2011
Ask Sen. McConnell to Appoint Sen. DeMint to Senate Finance Committee
05 13, 2011
popular articles
Does Obama Want to Destroy America? Yes, But…
by: warner todd huston | 04, 26 2010
B. HUSSEIN OBAMA: 'I will stand with the Muslims. . .
by: j. grant swank, jr | 07, 01 2008
Anti-American George Soros and Unions Attempting to Put Power of CA Redistricting in Their Own Hands
by: warner todd huston | 10, 18 2010
ARE AMERICANS READY FOR ALL-OUT CIVIL WAR?
by: jb williams | 09, 07 2011
Will Fabian Obama Compromise America’s Independence?
by: sandra carney | 10, 31 2008