FOREIGN BANK SECRECY AND BANK RECORDS HEARINGS BEFORE THE COMMITTEE ON BANKING AND CURRENCY HOUSE OF REPRESENTATIVES NINETY-FIRST CONGRESS FIRST AND SECOND SESSIONS ON H.R. 15073 A BILL TO AMEND THE FEDERAL DEPOSIT INSURANCE ACT DECEMBER 4, 10, 1969; FEBRUARY 10, MARCH 2, AND 9, 1970 41-642 Printed for the use of the U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 1970 Bartimo, Frank A., Assistant General Counsel, Manpower and Reserve Af- Leval, Pierre, former chief attorney, appellate division, southern district Morgenthau, Robert N., U.S. Attorney for the southern district of New Pollack, Irving M., Director, Division of Trading and Markets, Securities Rossides, Hon. Eugene T., Assistant Secretary of the Treasury for Enforce- ment and Operations, accompanied by Roy T. Englert, Deputy General Counsel; Robert T. Cole, Special Assistant for International Tax Affairs; Michael Bradfield, Assistant General Counsel; and Ira Tannebaum, Rossides, Hon. Eugene T., Assistant Secretary of the Treasury for En- forcement and Operations, accompanied by William Dickey, Deputy Assistant Secretary; and Robert T. Cole, Special Assistant for Inter- Somer, Clifford C., vice president, American Bankers Association, accom- Thrower, Hon. Randolph W., Commissioner, Internal Revenue Service, accompanied by Leon C. Green, Deputy Assistant Commissioner for Compliance; Bernard Meehan, Staff Assistant in Compliance; and Paul Peppler, Coordinator, Intelligence Division. Williford, Frederick L., executive vice president, National Microfilm Asso- Wilson, Hon. Will, Assistant U.S. Attorney General__. 128 316 119 175 312 340 14 American Bankers Association, comments on Treasury Department's 335 Committee of Foreign-Owned Banks, comments on bank secrecy legisla- Page Desch, Carl W., commentary on H.R. 15073. Eastman Kodak Co., report of the use of microfilm in maintaining records: "Eastman Kodak Division Helps Banks To Find Needle in a Hay- stack of Corporation Dividend Checks," article from the American "Improving the Proof-Transit Operation," article by Arthur Van "Microfilming Safeguards. Audits Bank Network," article by Kennedy, Hon. David M., Secretary of the Treasury, letter to Hon. National Association of Securities Dealers, Inc., statement of. Documents pertaining to SEC's litigation with Investors Overseas National Association of Supervisors of State Banks, statement of...--- Comments on the testimony of Robert M. Morgenthau on H.R. 15073_ Comments on Treasury Department statement on H.R. 15073.......... Advertisement of "Swiss Credit Bank," from the Wall Street Journal, "American Seized in Netherlands in Plot on HRA," article from the New York Times, January 15, 1969_- Comparison of Internal Revenue Service testimony, excerpts of Copies of four checks stolen and forged from the Human Resources land. "Errors and Omissions," editorial from New York Times, February "Eight Indicted in Alleged Plot To Defraud United States Through Use of Swiss Bank Accounts," article from the Wall Street Journal, Letter from Hon. David M. Kennedy, Secretary of the Treasury, dated January 13, 1970, with an attached letter from Hon. Eugene T. Rossides, Assistant Secretary of the Treasury, dated Janu- Letter from Hon. Eugene T. Rossides, dated February 9, 1970_ Letter to Hon. David M. Kennedy, Secretary of the Treasury, dated 371 343 352 349 164 368 173 29 156 "Report by January 31, United States Directs HRA" article from 32 State Department telegram approved by Hon. Eugene T. Rossides, 86 "Top Swiss Court Lets U.S. Look at Bank Files," article from the Approval of State Department telegram in regard to Mutual Judicial The committee met, pursuant to notice, at 9:15 a.m., in room 2128, Rayburn House Office Building, Hon. Wright Patman (chairman), presiding. Present: Representatives Patman, Barrett, Sullivan, Reuss, Moorhead, Stephens, St Germain, Gonzalez, Minish, Hanna, Gettys, Annunzio, Rees, Galifianakis, Bevill, Griffin, Hanley, Brasco, Chappell, Widnall, Halpern, Clawson, Stanton, Blackburn, Brown, and Williams. Chairman PATMAN. The committee will please come to order. Mr. Morgenthau and Mr. Wilson, you may come around and take the witness stand, if you will, please; and Mr. Leval, will you come forward, please. This morning we begin hearings on H.R. 15073, a bill to amend the Federal Deposit Insurance Corporation Act to authorize the Secretary of the Treasury to issue regulations requiring the maintenance of certain records by commercial banks. Further, the bill requires the filing of reports and maintenance of records pursuant to regulations issued by the Secretary, by those who do business with foreign financial institutions in jurisdictions with bank secrecy laws. (The text of H.R. 15073 follows:) [H.R. 15073, 91st Cong., first sess.] A BILL To amend the Federal Deposit Insurance Act to require insured banks to maintain certain records, to require that certain transactions in United States currency be reported to the Department of the Treasury, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, 101. Retention of records by insured banks. Section 101. Retention of records by insured banks The Federal Deposit Insurance Act is amended (1) by redesignating sections 21 and 22 as 22 and 23, respectively, and (2) by inserting the following new section immediately after section 20: "SEC. 21. (a) The purposes of this section are (1) to facilitate the supervision of the business of banking, (2) to aid duly constituted authorities in lawful investi(1) |