It is a difficult issue that comes down to politics. There are other political priorities that we mere mortals don t understand. Rep. Jim Leach of Iowa, chairman of the House Banking and Financial Services Committee, sees the Bank of New York scandal as a serious blow to the future of democracy in Russia and held several hearings on the matter during the last year. He tells Insight, If you take the circumstances surrounding the Bank of New York, we re not talking about money laundering as a problem outside of our national interest. We have a vested interest in the Russian people and their successful transition to democracy a transition that isn t paralyzed by capital flight and money laundering.
Leach says, The U.S. has a banking system that is surprisingly honest.
We have laws that are very precise when it comes to money laundering. True, say critics, but Americans also are accustomed to the right to privacy including banking privacy. And as the United States continues to lose its nearly 30 years war on drugs, new and ever more intrusive laws are being rammed through Congress to pick up where the previous failed policies left off. Given that these initiatives are only part of the list, it isn t difficult to understand why so many are concerned that antilaundering legislation is becoming excessive. Last year s hotly debated and quickly defeated Know Your Customer proposal, against which Insight took the lead, was regarded by most Americans as a further intrusion into their personal financial affairs.