NCJ Number
102302
Date Published
1985
Length
194 pages
Annotation
Testimony before the Senate Permanent Subcommittee on Investigations concerns the 1985 Federal investigation that occasioned the arrest of 17 persons, most of them bank officials, in 10 Puerto Rican banks for money laundering offenses. Ways to prevent similar occurrences in other banks are discussed.
Abstract
Testimony by a Justice Department representative and the chief investigator of the Permanent Subcommittee on Investigations details steps in the investigation and the violations of the Bank Secrecy Act that permitted the money laundering to continue for an extended period. Testimony by the director of the Office of Examinations and Supervision for the Federal Home Loan Bank Board, the agency responsible for monitoring banks' compliance with the Bank Secrecy Act, explains this agency's failure to detect violations in the Puerto Rican banks and describes steps the agency is taking to better equip its auditors to detect violations of the act. Representatives of two Puerto Rican banks describe their banks internal security procedures and propose ways to ensure that the violations revealed in the investigation could not recur. Prepared statements and exhibits.