Russia Hearings Open with Plan for Curbs on Foreign Business

By Barancik, Scott | American Banker, September 22, 1999 | Go to article overview

Russia Hearings Open with Plan for Curbs on Foreign Business


Barancik, Scott, American Banker


WASHINGTON -

Kicking off two days of hearings on alleged Russian money laundering, House Banking Chairman Jim Leach introduced legislation Tuesday that would force U.S. banks to take extra precautions before doing business with foreign customers.

Under the bill, a U.S. bank could not open or maintain an account for a foreign person or company unless the bank identified and kept a record of the account's beneficial, or true, owners.

"It is critically important that banks exercise due diligence in knowing who their customers are," Rep. Leach said.

The bill would also prohibit U.S. banks from hosting correspondent accounts for foreign banks that were not adequately supervised by, or chartered to do business in, their host country. Certain restrictions would also apply to payable-through accounts.

Sen. Charles E. Schumer, D-N.Y., will soon introduce a companion bill in the Senate, his spokeswoman said Tuesday.

The legislation is designed to fill loopholes in the Bank Secrecy Act, shortcomings recently exposed by a broad U.S. investigation into allegations that ill-begotten Russian funds were laundered through the Bank of New York and other institutions. Swiss officials said Tuesday that banks in that country have frozen $16.8 million in accounts as part of the ongoing probe.

Meanwhile, a government letter praising the Republic Bank of New York for its role in the inquiry has surfaced. The Aug. 5 letter, signed by Federal Bureau of Investigation assistant director Lewis D. Shiliro, cited Republic as the primary catalyst for the government's investigation and called the bank's wire transfer monitoring system "highly effective."

One of the Republic executives praised in the FBI's letter, managing director Anne Vitale, will testify Wednesday. Bank of New York chairman Thomas Renyi will also testify.

John J. Byrne, senior counsel at the American Bankers Association, called Rep. Leach's anti-money laundering bill premature. He said lawmakers should have at least waited until the two-day hearing was completed before passing judgement on the adequacy of existing regulations and bank efforts.

"It's way too early to be moving any new laws," Mr. Byrne said.

One likely bone of contention is that the bill would apply to existing accounts, not just new accounts. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Russia Hearings Open with Plan for Curbs on Foreign Business
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.