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New FinCEN proposal: “more hay to the haystack”

September 30, 2010
Image from mortgage fraud testimony by James H. Freis

FinCEN director Jim Freis

Zarate on C-SPAN
Juan Zarate

 

Juan Zarate, a former counterterrorism official and U.S. Treasury assistant secretary for terrorist financing and financial crimes under George W. Bush, has come out against the Obama administration’s new sweeping proposal for banks to rat on their customers to the feds for any and all overseas money transfers.  Currently, financial institutions are required to report transactions greater than $10,000 and to file reports on any transactions that appear suspicious. 

In an interview yesterday, Zarate told NPR’s Dina Temple-Raston that the new proposal to report all foreign transactions would be increase the amount of data without isolating truly suspicious activity:

There is already evidence that anti-money laundering and CFT compliance is too invasive and costly.  James H. Freis, the Treasury official responsible for the new proposal, claims the new requirement would present only a “modest cost,” and “will greatly assist law enforcement in detecting and ferreting out transnational organized crime, multinational drug cartels, terrorist financing and international tax evasion.”

Meanwhile, cash smuggling by Muslim American charities into Karachi airport will be mostly ignored…

One comment

  1. […] of unknown Saudi customers raise no red flags.  Meanwhile the Obama administration wants to start forcing banks to report on customers who transfer twenty bucks overseas.  That makes […]



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