Federal News Service - Panel I of a Hearing of the House Financial Services Committee - Transcript

Federal News Service

HEADLINE: PANEL I OF A HEARING OF THE HOUSE FINANCIAL SERVICES COMMITTEE

SUBJECT: TERRORIST FINANCING, MONEY LAUNDERING AND THE 9/11 COMMISSION REPORT

CHAIRED BY: REPRESENTATIVE MICHAEL OXLEY (R-OH)

WITNESSES: LEE HAMILTON, VICE CHAIRMAN, 9/11 COMMISSION;

LOCATION: 2128 RAYBURN HOUSE OFFICE BUILDING, WASHINGTON, D.C.

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REP. SHELLEY MOORE CAPITO (R-WV): Thank you, Mr. Chairman. And thank you, Vice Chairman.

I have a question sort of in a little more general nature. I happened to be in a bank, a community bank, in West Virginia-I represent West Virginia-and the bank officer was asking me the very same questions about the forms and who's reading these and how important are these. And I sort of took a different tact (sic) with her. I said, you know, I guess that's in the Section 326 requirements of the Patriot Act that you emphasized were so important.

But I said it's-I think it's important for us to realize across the country, even in the rural areas, that this war on terror has to be fought not only in the big financial centers, where we're tracking down transactions, but everybody needs to be enlisted in being vigilant and being a part of the solution of tracking down the terrorists.

And then when I was reading your report-you have a sentence on page 383 where it says if al Qaeda is replaced by smaller, decentralized terrorist groups, the premise behind the government's efforts-that terrorists need a financial support network-may become outdated.

And after reading that statement, it sort of backs up what I'm saying, that everybody no matter where you live in the United States, no matter what kind of financial institution you're attached with, you need to be a part of the solution rather than saying it's going to be done in New York, Chicago, Miami and the more natural places.

And so I was wondering if you had a more generalized perspective how we can help our constituents in these kinds of areas who feel a little bit removed from some of the solutions how important their role really is to seeking the solutions and to finding the terrorists at the root. And then I think, well, the terrorists, when they entered the air transportation system, they didn't enter in Boston. I believe they entered in Maine and in other areas where they were considered to be maybe easier or less likely to be more heavily screened, or for whatever reason it was obviously very successful. So did you have any comments on that?

MR. HAMILTON: I think your observation is very good. In other words, one of the functions you have to play, if you pass a piece of legislation, is to explain to people why it's necessary, and apparently you were trying to do that and I commend that. It seems to me that's exactly right. There isn't any doubt, in fighting terrorism, we have to ask a lot of people to do a lot of things. And the first line of defense against terrorism, in many respects, is the general public. The most obvious example of course is if you sit down on an airplane and somebody lights a shoe to their match -- (chuckles) -- or a match to their shoe, excuse me-you're going to react to that. You're the first line of defense. Likewise, the banker or the financial institution has to recognize that they do have a burden in fighting terrorism.

Now maybe that burden is excessive; I really can't make that judgment. I don't know because I don't know exactly what they have to do. But there isn't any doubt that we're putting an extra burden on them, and all Americans have to accept the fact that there are burdens placed on them by reason of terrorism. My own observation is by and large they want to be helpful and cooperative and, if it's explained to them, they're prepared to do it.

REP. CAPITO: Thank you.

I have no further questions. I yield back. Thank you.