Financial Crime World

Investigation into Puerto Rican Bank Finds Evidence of Money Laundering

Washington D.C. - Senate Committee Holds Hearing to Investigate Allegations

The Senate Committee on Banking, Housing and Urban Affairs held a hearing today to investigate allegations of money laundering at a major bank in Puerto Rico.

Chairman Roth Emphasizes Importance of Investigation

Chairman Roth emphasized that the investigation was not meant to imply any conclusions about the solvency of the bank, but rather to uncover evidence of illegal activities. “We want to get to the bottom of this and ensure that our financial institutions are complying with regulations,” he said.

Senator Rudman Expresses Concern over Lack of Effective Auditing

Senator Rudman, a member of the committee, expressed his concern over the lack of effective auditing and enforcement by government agencies. “It’s clear that those responsible for auditing banks and determining compliance with regulations are not doing their job,” he said. “Our staff was able to uncover evidence of violations in just a matter of minutes.”

Testimony from Charles Blau, Associate Deputy Attorney General

The committee heard testimony from Charles Blau, Associate Deputy Attorney General of the Department of Justice, who discussed the problem of money laundering in Puerto Rico and the efforts being made by his department to combat it.

  • Money laundering is an “easy process” that involves concealing the source of illegal funds and disguising their origin.
  • Estimates suggest that money laundering in the United States could be as high as $150 billion annually.
  • In Puerto Rico, Blau said that a significant increase in currency flowing from financial institutions to the Federal Reserve was noticed in 1982, leading to suspicions of a money laundering phenomenon similar to one discovered in South Florida in 1979.

Evidence of Suspicious Transactions and Irregularities Found

The committee’s investigation found evidence of suspicious transactions and irregularities at several banks in Puerto Rico. The full extent of the problem is still unknown, but it is clear that more needs to be done to combat this complex and sophisticated crime.

Hearing Continues Tomorrow

The hearing will continue tomorrow with further testimony from government officials and experts on money laundering.