House Republicans Are Trying To Make Money Laundering A Lot Easier

[applegrove]

House Republicans Are Trying To Make Money Laundering A Lot Easier

by Zach Carter at the Huffington Post

http://www.huffingtonpost.com/2014/08/27/house-republicans-money-laundering_n_5717877.html?utm_hp_ref=politics

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WASHINGTON -- House Republicans are agitating to dramatically curb federal bank regulators' ability to combat money laundering, calling for changes in decades-old financial fraud standards in an effort to aid payday lenders.

Moving illegal cash through the financial system has long been barred by money laundering laws. But under a bill introduced by Rep. Blaine Luetkemeyer (R-Mo.), federal regulators would be forbidden from doing anything to "restrict or discourage" a bank from doing business with any company that has both a license to do business and a "reasoned legal opinion" from a lawyer claiming that the business doesn't break the law.

That's not a high hurdle to clear. Obtaining a business license and hiring a lawyer is a routine money laundering tactic for everyone from the mafia to terrorists to, more commonly, petty fraud scammers.

"It's completely whitewashing fraud," said Lauren Saunders, associate director of the National Consumer Law Center. "There are licensed companies that commit fraud all the time, and everybody's got lawyers who will try to justify what they're doing."





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