Senate Permanent Subcommittee on Investigations Holds Hearing on Keeping Foreign Corruption Out of the United States

On February 4, 2010, the Permanent Subcommittee on Investigations held a hearing on Keeping Foreign Corruption Out of the United States: Four Case Histories. The Subcommittee hearing examined how some politically powerful foreign officials, their relatives, or close associates – referred to in international agreements as “Politically Exposed Persons” or PEPs – have used the services of U.S. professionals and U.S. financial institutions to bring millions of dollars in suspect funds into the United States to advance their interests. The Subcommittee released a 330-page study, entitled Keeping Foreign Corruption Out of the United States: Four Case Histories. According to Subcommittee Chairman Carl Levin’s opening statement, the report illustrates how some PEPs have used U.S. lawyers, realtors, escrow agents, lobbyists, bankers, and others to circumvent U.S. anti-money laundering and anti-corruption safeguards. The study and hearing also looked at how some U.S. professionals have actively helped PEPs avoid bank scrutiny or facilitated suspect transactions with no questions asked. The hearing also examined whether U.S. policies and practices to combat foreign corruption and money laundering need strengthening. Senator Levin’s opening statement characterized a main theme in the hearing: “If we want to credibly lead efforts to stop illegal money abroad, we’ve got to stop it here at home as well"...more...