Posts Tagged ‘James H. Freis’

h1

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…

Advertisements
h1

Wednesday word: FIU

May 26, 2010

FIU stands for financial intelligence unit.  The Egmont Group, an informal association of FIUs from around the world, defines an FIU as follows:

A central, national agency responsible for receiving (and as permitted, requesting), analyzing and disseminating to competent authorities, disclosures of financial information:

i.  concerning suspected proceeds of crime and potential financing of terrorism, or

ii.  required by national legislation or regulation, in order to combat money laundering and terrorist financing.*

The FIU for the United States is the Financial Crimes Enforcement Network (FinCEN), an office within the Treasury Department which is also responsible for administering and enforcing the Bank Secrecy Act.

The director of FinCEN is James H. Freis, Jr., a Bush-era holdover.

Director of the Financial Crimes Enforcement Network

FinCEN Director James H. Freis, Jr.

At least 115 other countries have financial intelligence units according to the membership rolls of the Egmont Group.

*  Schott, Paul Allan, Reference Guide to Anti-Money Laundering and Combating the Financing of Terrorism, second edition (The World Bank:  2006).