NCJ Number
91139
Date Published
1983
Length
447 pages
Annotation
Law enforcement problems are created by foreign secrecy provisions for bank transactions that involve money from such criminal activities in the United States as narcotics trafficking, tax evasion, and securities and exchange fraud; approaches for dealing with these problems are presented.
Abstract
Testimony indicates that money laundering has become one of the most important aspects of criminal activity, notably in connection with narcotics trafficking, securities fraud, tax evasion, and the enterprises of organized crime. The use of the growing number of banks in the Caribean Islands protected by secrecy laws has facilitated such laundering. Testimony indicates that under these circumstances, the investigator and prosecutor are faced with several significant difficulties: discovering where and when money laundering, fictitious entities, and sham transactions have occurred or are being used; obtaining sufficient information and leads to follow the complex schemes used; and securing documents, testimony, and other evidence that will be admissible in court. Testimony is presented from representatives of law enforcement arms of various Federal agencies, including the Customs Service, the Internal Revenue Service, the Securities and Exchange Commission, and the Treasury Department. Testimony is also presented from representatives of a consulting firm involved in establishing offshore banks and representatives from some of the banks. The general approaches suggested for dealing with the law enforcement problems associated with secrecy provisions for banking transactions aim at providing offshore governments, as well as other governments with similar secrecy laws, with incentives for making exceptions to these secrecy provisions where there is evidence of criminal activity. Exhibits and prepared statements are included.