NEGATIVE - DISADVANTAGE — PRIVACY HURTS SECURITY — MONEY LAUNDERING 198

NEED FINANCIAL RECORDS TO STOP MONEY LAUNDERING

BANK INFORMATION SHARNG THROUGH SARs IS A GOOD WAY TO FIGHT MONEY LAUNDERING

Stuart Eizenstat, USA TODAY, April 3, 2000, SECTION: NEWS; Pg. 26A TITLE: Reports key to fighting crime // acs-EE2001

The suspicious-activity reporting system is one critically important way to attack money laundering and to safeguard privacy. A bank files "Suspicious Activity Reports" (SARs) on transactions over $ 5,000 that the bank reasonably suspects involve illegal proceeds or have no business or apparent lawful purpose. Law enforcement agencies then use SARs, with other leads, to follow the money and break up money-laundering schemes.

SARs DO NOT INVADE LEGITIMATE PRIVACY

Stuart Eizenstat, USA TODAY, April 3, 2000, SECTION: NEWS; Pg. 26A TITLE: Reports key to fighting crime // acs-EE2001

SARs do not invade legitimate expectations of privacy. The regulations neither require banks to monitor all of their customers' transactions nor affirmatively seek out suspicious activity. They only require banks to be alert to truly suspicious behavior. And of the billions of transactions that occur every day, only a tiny fraction are reported.

WE NEED SARs FOR LAW ENFORCEMENT TO COMBAT MONEY LAUNDERING

Stuart Eizenstat, USA TODAY, April 3, 2000, SECTION: NEWS; Pg. 26A TITLE: Reports key to fighting crime // acs-EE2001

Make no mistake: SARs are tremendously useful to law enforcement. The FBI estimates that SARs were used in 98% of the 2,536 convictions for financial-institution frauds in fiscal year 1997. Recently, SARs were instrumental in the money-laundering investigation at the Bank of New York, which has led to three convictions, including that of a bank executive. Without the SAR system, many criminals now behind bars would never have been caught. SARs are -- and must remain -- a key component of our nation's anti-money-laundering commitment.

AFF ANSWER:

WAR ON MONEY LAUNDERING STOPS USA FROM FOCUSING ON REAL THREATS OF STATE SPONSORED TERRORISM

Earl C. Ravenal, senior fellow of the Cato Institute, The Washington Post, July 23, 1999, SECTION: OP-ED; Pg. A29 TITLE: Heart of the Constitution; The encryption debate. // acs-EE2001

American society is in for a real battle against state-sponsored terrorism on a scale not yet experienced. That battle will test our society's resources of defense and intelligence. In the face of this threat, our government's war on "money laundering" is not only an assault on the ordinary freedoms of Americans. It is also a distraction from the exacting task of drawing the proper lines of defense of the real security of our society.