Senator Paul S. Sarbanes, Chairman of the Committee on Banking, Housing and Urban Affairs, has announced that the full Committee will hold a hearing on the growing problem of domestic and international money laundering, and will provide an opportunity for the Bush Administration to discuss its National Money Laundering Strategy for 2001.

Money laundering is generally defined as "transferring illegally obtained money or investments through an outside party to conceal the true source." The laundering of money often involves financial services institutions including banks, securities firms, check cashers and money transmitters. The economic costs associated with money laundering include increased risks to bank soundness with potentially large fiscal liabilities, reduced ability of a country to attract foreign investment, and increased volatility of international capital flows and exchange rates.

In addition, money laundering poses even more serious issues from the perspective of U.S. law enforcement and national security. The laundering of "dirty money" allows terrorists, drug cartels, organized crime groups, and others to profit from their illegal activities and finance new crimes.

The hearing will be held:

Scheduled to appear are:

• The Honorable Jimmy Gurule, Under Secretary for Enforcement, Department of the Treasury;


• Mr. Stuart Eizenstat, former Assistant Secretary of the Treasury;


• Mr. Alvin James, a former Special Agent with the IRS Criminal Investigation Division and former
  Senior Money Laundering Advisor to the Financial Crimes Enforcement Network (FinCen); and


• Mr. William Wechsler, former Special Advisor to the Secretary of the Treasury for money laundering matters.