Money Laundering and Foreign Corruption: Enforcement and Effectiveness of the Patriot Act

From 1999 to 2001, the Subcommittee conducted an extended investigation into money laundering vulnerabilities at U.S. financial institutions, including in the areas of private banking, correspondent banking, and federal securities. The Subcommittee issued two reports, held five days of hearings, and provided the factual foundation for many of the anti-money laundering provisions enacted into law in Title III of the USA Patriot Act of 2001.

This Subcommittee hearing examined current enforcement of key provisions in the Patriot Act combating money laundering and foreign corruption, using a single case study involving Riggs Bank. The hearing  examined Riggs’ anti-money laundering program, administration of accounts associated with senior foreign political figures and their family members, and interactions with its primary regulator, the Office of the Comptroller of the Currency (OCC). The hearing also examined the OCC’s anti-money laundering oversight and enforcement actions. In addition, the hearing examined the activities of some oil companies in Equatorial Guinea.

In conjunction with these hearings, the Subcommittee Minority Staff issued a report entitled “Money Laundering & Foreign Corruption:  Enforcement and Effectiveness of the Patriot Act.”  The Report is available via the link located at the top left corner of this webpage.