Date: Feature Week of April 20, 2003
Topic: Black Press Business/Economic
Author: William Reed
Article ID: article_ema042003a

FOLLOW THE MONEY

Did you know that African-Americans play a major role in America's fight against terrorist financing, money laundering and other crimes? Tougher laws against money laundering in all financial institutions, including transactions at the corner check-cashing center, have been implemented by the federal government to fight financial crime.

Specifically, the government is requiring certain money services businesses (MSBs), or businesses that provide money transfers, money orders, traveler's checks or check cashing or currency exchange services, to register with or report suspicious financial activity to the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN). These businesses must also implement anti-money laundering programs.

Many money services businesses MSBs provide valuable, financial services in Black and urban neighborhoods. The professional check cashing industry alone is composed of approximately 5,000 neighborhood financial service centers, which cash upwards of 175 million checks annually with an aggregate face value of more than $60 billion.

In recent years, as a broader spectrum of consumers have sought increased financial services, convenience community-based check cashing centers have proliferated. Over the years, check cashers have introduced a range of financial services to complement basic check cashing - including payroll checks, government checks, personal checks, and insurance drafts - other financial services available including: the sale of money orders, money transfers, welfare benefit and food stamp distribution, public transportation fare and token sales, and prepaid telephone debit cards.

To help deter criminals from using these services to launder criminal proceeds, a national registration program for check cashers, money order sellers, and agents of money transmitters is required. Owners, operators and employees of MSBs, as well as church -and �community-operated credit and financial institutions in Black communities must be engaged in the fight against money laundering and help people recognize the importance of understanding the financial components of terrorist and criminal organizations.

The importance of being able to "follow the money," in the investigation of all criminal enterprises, cannot be overstated. It's important for financial leaders in African-American communities to take the lead in pointing out that money laundering has devastating social consequences and is a threat to our communities and national security. The illegal laundering of money provides fuel for drug dealers, terrorists, arms dealers, and other criminals to operate and expand criminal enterprises.

Money laundering must be checked because it constitutes a threat to the safety of our communities, to the integrity of our financial institutions and to our national security�and MSBs can and must help.

To learn more about MSBs, the Bank Secrecy Act's requirements, and the role MSBs, activists and other concerned community members can play in the fight against money laundering, terrorist financing and other financial crimes visit www.msb.gov.

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© 2000-2003 William Reed - www.BlackPressInternational.com