The approved legislation was sponsored by the committee chairman, Sen. Paul Sarbanes. It included many provisions from two bills Sen. Grassley sponsored earlier this year as part of his work as co-chairman of the Senate Caucus on International Narcotics Control.
The Money Laundering Abatement Act (S.1371), introduced in August by Sens. Levin and Grassley, focused on closing loopholes in current U.S. banking regulations that foreign banks and foreign investors exploit, especially in the management of correspondent accounts. The International Counter-Money Laundering and Anticorruption Act (S.398), introduced in February by Sens. Kerry and Grassley, provides tools to crack down on money laundering havens overseas while protecting the integrity of the U.S. financial system.
The Sarbanes proposal could be considered by the full Senate as early as next week either on its own or in conjunction with a broad-based anti-terrorism proposal.
Sen. Grassley's comment:
"Serious efforts to combat international money laundering have been going on for about 15 years, and legislation introduced earlier this year was an important part of the effort to strengthen our tools in the fight against drug trafficking. After the attacks of September 11, anti-money laundering initiatives have moved from being an important part of the fight against drug dealers to being a top priority for national security. Cash transactions have long been the criminals' financial tool of choice. And international terrorists are the latest to take advantage of them. Shutting off down the money pipeline is key to shutting down terrorist activities."