Reps. Royce and Gonzalez Kickstart Bipartisan Effort to Crack Down on Money Laundering and Terrorism Financing

Press Release

Today, U.S. Representatives Ed Royce (R-CA) and Vicente Gonzalez (D-TX) introduced H.R. 4373, the bipartisan Anti-Money Laundering and Counter-Terrorism Financing Modernization Act or the AML and CTF Modernization Act which strengthens the United States anti-money laundering (AML) and counter-terrorism financing (CTF) system.

"Financial criminals and terrorists have evolved in the decades since our anti-money laundering regime was built but our regulatory structure hasn't kept pace," said Rep. Royce. "By some estimates, nearly 70 percent of spending on AML compliance is focused on inputs over outcomes. This does little to thwart criminal syndicates, rogue nations, and terrorist networks but it strips away resources that could be better spent on new technologies and other innovations to support national security. The AML and CTF Modernization Act will refocus our regime on quality over quantity, providing new tools to assist law enforcement."

Rep. Royce also echoed previous calls for passage of legislation to combat anonymous shell companies involved in money laundering saying, "Tackling beneficial ownership is an essential part of comprehensive reform." Specifically, he is a cosponsor of the bipartisan Corporate Transparency Act, sponsored by Reps. Carolyn Maloney (D-NY) and Peter King (R-NY).

"Money laundering poses a serious threat to the legitimacy and stability of our local, national, and international financial institutions," said

Rep. Gonzalez. "The Anti-Money Laundering and Counter Terrorism Financing Modernization Act establishes a protocol that allows banks to share targeted information without liability; requires regulators to produce rulings that will advance financial institutions' ability to abide by Anti-Money Laundering and Counter-Terrorism Financing regimes; and will require the U.S. Department of the Treasury to share helpful Anti-Money Laundering and Counter-Terrorism Financing intelligence that would empower our financial institutions to fight against money launderers. Enacting this important legislation will bolster the transparency and efficiency of our financial system while enhancing our ability to prevent money laundering schemes in a timely manner."

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