CAPITALISM'S ACHILLES HEEL Dirty Money and How to

Magnitudes and Misunderstandings 181
• Requires all U.S. financial institutions to establish anti–money laundering
programs, not only banks but also securities dealers, insurance companies,
credit card companies, investment companies and money transmitters.
(Sec. 352)
• Requires securities brokers and dealers to submit suspicious activity reports,
and authorizes the Treasury Department to extend this provision to other
types of financial service businesses. (Sec. 350)
• Requires U.S. financial institutions to establish procedures for “verifying
the identity of any person seeking to open an account,” but gives the
Secretary of the Treasury authority to allow exemptions from this provision.
(Sec. 326)
• Requires “enhanced due diligence” when opening and operating accounts
for wealthy foreign private bank clients, including “enhanced scrutiny” of
accounts for foreign political figures and their families. (Sec. 312)
• Authorizes the Treasury Department to take actions against any foreign
country, financial institution, or other entity deemed to be of “primary
money laundering concern,” including prohibiting U.S. banks from doing
business with named offenders. (Sec. 311)
• Allows the U.S. government to seize from a U.S. correspondent bank account
an amount equivalent to terrorist or criminal funds deposited in a foreign
bank account. (Sec. 319)
• Bars banks and securities firms operating in the United States from providing
U.S. correspondent accounts to serve foreign shell banks, that is, a “foreign
bank that does not have a physical presence in any country.” (Sec. 313)
• Authorizes the Treasury Department to “prohibit financial institutions from allowing
clients to direct transactions . . . through . . . concentration accounts,”
as were used to route Raul Salinas’s millions out of Mexico. (Sec. 325)
• Makes “the act of smuggling bulk cash,” above $10,000, a criminal offense.
(Sec. 371)
• Criminalizes handling the proceeds of foreign “bribery of a public official,
or the misappropriation, theft, or embezzlement of public funds” for the
benefit of a public official. (Sec. 315)
• Makes it a criminal offense to operate an “unlicensed money transmitting
business.” At last report, some 18,000 money service businesses and
hawaladars have since registered in the United States. (Sec. 373)
(Continued)