FROM THE OFFICE OF PUBLIC AFFAIRS

Today in Paris, the Financial Action Task Force (FATF) named 15 jurisdictions that have failed to take adequate measures to combat international money laundering. The United States, an active participant in the FATF, welcomes this landmark step to limit the capacity of drug dealers, terrorists, organized criminals and corrupt foreign officials to launder their ill-gotten gains through safe havens.

FATF's Report on Non-Cooperative Countries and Territories provides important information that financial institutions in this country and around the world should make use of in conducting their own internal anti-money laundering efforts. The United States will promptly examine what additional guidance ought to be provided to our own financial institutions.

The Report also underscores the importance of Congress acting on the bi-partisan anti-money laundering legislation introduced by Congressmen Leach and LaFalce. The legislation, which passed overwhelmingly by the House Banking Committee, would substantially enhance the capacity of the United States to employ targeted counter-measures against money laundering havens.

This Report fulfills a commitment made by FATF in February and by the United States in March in our National Money Laundering Strategy to identify countries whose counter-money laundering regimes fail to meet international standards. It is major step in the right direction.

Taken together with recent actions by the Financial Stability Forum - categorizing offshore financial centers according to their perceived quality of supervision and degree of regulatory cooperation - and the OECD - cracking down on harmful tax competition - FATF's action reflects a new international commitment to curb financial abuse around the world. These measures are crucial steps in the effort to ensure that global mobility of capital remains a strong positive force for economic growth and prosperity worldwide.