Norris McLaughlin & Marcus, P.A.

Blogs > Business Without Borders

Banks to Report All Electronic Money Transfers Into and Out of the Country

Posted on September 30th, 2010 | Author: Robert C. Gabrielski

The Obama administration wants to require U.S. banks to report all electronic money transfers into and out of the country.  That proposal is a dramatic expansion of US government efforts to counter terrorist financing and money laundering.
Obama administration officials contend that the expanded collection of information would help them spot the sort of transfers that helped finance the al-Qaeda hijackers who carried out the Sept. 11, 2001, attacks. Those officials claim that the expanded financial data would allow anti-terrorist agencies to better understand normal money-flow patterns so they can spot abnormal activity.
Under current US Treasury Regulations, all financial institutions must report to the Treasury Department any transactions in excess of $10,000 and others they deem suspicious. The proposed new rule would now require those financial institutions to disclose even the smallest transfers.
US Treasury officials plan to post the proposed regulation on their Web site Monday, October 4th and in the Federal Register this week. The public could comment before a final rule is published and the plan takes effect, which officials say will probably not be until 2012.

Further information available at: http://www.cbsnews.com/stories/2010/09/27/politics/washingtonpost/main6903959.shtml