Money Laundering Scam

Due to its controversial nature, a number of bills - none of which were passed - were proposed to amend the USA PATRIOT 1 Act. These included the Protecting the Rights of Individuals Act , 69 the Benjamin Franklin True Patriot Act , 70 and the Security 2 and Freedom Ensured Act (SAFE). 71 In late January 2003, the founder of the Center for Public Integrity, Charles Lewis, 3 published a leaked draft copy of an Administration proposal titled the Domestic Security Enhancement Act of 2003. 72 This 4 highly controversial document was quickly dubbed "PATRIOT II" or "Son of PATRIOT" by the media and organizations 5 such as the Electronic Frontier Foundation. 73 The draft, which was circulated to 10 divisions of the Department of Justice, 74 6 proposed to make further extensive modifications to extend the USA PATRIOT Act. 75 It was widely condemned, although 7 the Department of Justice claimed that it was only a draft and contained no further proposals. 76 8

5.3

Titles

9

5.4

Title III: Anti-money-laundering to prevent terrorism

10

Title III of the Act, titled "International Money Laundering Abatement and Financial Anti-Terrorism Act of 2001," is intended 11 to facilitate the prevention, detection and prosecution of international money laundering and the financing of terrorism. It 12 primarily amends portions of the Money Laundering Control Act of 1986 (MLCA) and the Bank Secrecy Act of 1970 (BSA). 13 It was divided into three subtitles, with the first dealing primarily with strengthening banking rules against money laundering, 14 especially on the international stage. The second attempts to improve communication between law enforcement agencies and 15 financial institutions, as well as expanding record keeping and reporting requirements. The third subtitle deals with currency 16 smuggling and counterfeiting, including quadrupling the maximum penalty for counterfeiting foreign currency. 17 The first subtitle tightened the record keeping requirements for financial institutions, making them record the aggregate 18 amounts of transactions processed from areas of the world where money laundering is a concern to the U.S. government. It 19 also made institutions put into place reasonable steps to identify beneficial owners of bank accounts and those who are 20 authorized to use or route funds through payable-through accounts. 77 The U.S. Treasury was charged with formulating 21 regulations intended to foster information sharing between financial institutions to prevent money-laundering. 78 Along with 22 expanding record keeping requirements it put new regulations into place to make it easier for authorities to identify money 23 laundering activities and to make it harder for money launderers to mask their identities. 79 If money laundering was 24 uncovered, the subtitle legislated for the forfeiture of assets of those suspected of doing the money laundering. 80 In an effort 25 to encourage institutions to take steps that would reduce money laundering, the Treasury was given authority to block mergers 26 of bank holding companies and banks with other banks and bank holding companies that had a bad history of preventing 27 money laundering. Similarly, mergers between insured depository institutions and non-insured depository institutions that 28 have a bad track record in combating money-laundering could be blocked. 81 29 Restrictions were placed on accounts and foreign banks. It prohibited shell banks that are not an affiliate of a bank that has a 30 physical presence in the U.S. or that are not subject to supervision by a banking authority in a non-U.S. country. It also 31 prohibits or restricts the use of certain accounts held at financial institutions. 82 Financial institutions must now undertake 32

69 OMAS, S.1552.

70 H.R. 3171, THOMAS.

71 S.1709, THOMAS.

72 PBS (February 7, 2007), Now with Bill Moyers, transcript.

73 EFF Analysis of "Patriot II," Provisions of the Domestic Security Enhancement Act of 2003, Electronic Frontier Foundation . Retrieved August 30, 2007.

74 "Control Sheet of the "Domestic Security Enhancement Act of 2003"" (PDF). Archived from the original on July 7, 2007.. Retrieved August 30, 2007.

75 Singel, Ryan (March 12, 2003). "A Chilly Response to 'Patriot II'". Politics : Law (Wired News). Retrieved July 11, 2008.

76 United States Department of Justice (February 7, 2007), Statement of Barbara Comstock, Director of Public Affairs.

77 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 311.

78 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 314.

79 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 317.

80 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 312, 313, 319 & 325.

81 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 327.

82 USA PATRIOT Act (U.S. H.R. 3162, Public Law 107-56), Title III, Subtitle A, Sec. 313.

The Money Laundering Enforcement Scam

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Copyright Sovereignty Education and Defense Ministry, http://sedm.org Form 05.044, Rev. 10-2-2013

EXHIBIT:________