Money-Laundering Reveals Holes in Regulations

A new Senate investigation alleges top African politicians and their families have evaded anti-money-laundering laws to bring hundreds of millions of dollars into the country.

The Senate's permanent subcommittee on investigations, in a 330-page report detailing the transfer of funds suspected of being tainted by corruption, calls for tighter anti-money-laundering restrictions on banks and the expansion of the law to cover lawyers and financial professionals such as realtors.

The committee will hold a hearing Thursday to seek responses from Treasury, State Department and immigration and customs-enforcement officials, as well as anti-money-laundering officials from Bank of America Corp. and the U.S. unit of HSBC Holdings PLC. The committee will present findings from a two-year probe involving officials from Nigeria, Angola, Gabon and Equatorial Guinea -- from presidents to central bankers.

Lawyers representing some of the African politicians, and alleged by the committee to have assisted in suspect fund transfers, also have been subpoenaed to testify.

"It's a long-standing goal of ours to try to see if we can keep corrupt money out of this country so we don't aid and abet people who pay this money," Committee Chairman Sen. Carl Levin (D., Mich.) told reporters at a briefing.

"Particularly now, when we're focusing so much on the threat of terrorism ... we've got to take strong steps here to make sure that we do not aid and abet dirty money," he said.

The bipartisan committee, with an eye toward the regulatory overhaul effort underway, wants legislation to strengthen bank controls related to accounts held by top foreign officials.

Nigerian Oil Tycoons Jittery Over US Bill On Corruption

Nigerian oil tycoons and major oil exporting companies have developed cold feet over plans by the federal government to adopt and partner the United States on a new bill introduced by the U.S.
The bills seeks among other things, to bring to book corrupt oil exporters.
LEADERSHIP gathered yesterday that the Nigerian government through its embassy in the United States is already tracking the new legislation introduced late last month in the U.S that would require oil, gas and mineral companies traded on the U.S. stock exchange to publish details of their deals with foreign governments.
The bill, according to reports will not be limited to American firms only, but would cover any foreign company that is traded on the U.S. exchange or raises capital in the U.S and is thus required to file SEC reports.
Over 100 top oil companies would be affected by the bill designed to promote transparency, particularly in the oil industry, where corruption often keeps profits from trickling down to the local population.