Banks need to come clean about money laundering

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MARCELA SANCHEZ
SYNDICATED COLUMNIST

WASHINGTON -- When it comes to money laundering, it's better to do it big time.
More than two years ago, the USA Patriot Act established reporting requirements for all financial institutions to ensure they are not used to finance terrorism, launder money or stash funds generated by criminal activity.



"The whole regulatory system has a serious problem of uneven application of laws and regulations," said Charles Intriago, a former federal prosecutor who now runs moneylaundering.com. While dozens of small-money transmitters have been penalized, prosecuted or suffered forfeitures, he said no securities dealer of any significant size or any U.S. bank in 13 years has been prosecuted. As long as they receive a "Get Out of Jail Free" card every time, banks won't take enforcement seriously, he added.

In 2001, a father and two sons, owners of a money transmitter company in Miami, were caught in a sting operation and later sentenced to 188 months and 155 months respectively for laundering $714,000. In 2003, in the harshest action against a bank in years, Puerto Rico's Banco Popular was accused of failing to report the laundering of $21.6 million in drug money and was threatened with criminal charges. But after the bank paid a $20 million fine, accepted responsibility and promised to behave in the future, the government agreed not to prosecute. (For those keeping score, $21.6 million is $20.9 million more than $714,000 -- and still the bank's president complained of having been unfairly singled out.)

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http://seattlepi.nwsource.com/opinion/183215_sanchez23.html

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1. Thanks, SLAD! eom