
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, April 26, 1990                   TAG: 9004260583
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A9   EDITION: EVENING 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Short

BILL ON LAUNDERING DRUG MONEY PASSES HOUSE

The government could close banks convicted of money-laundering under a House-approved bill that critics contend still leaves a giant loophole for drug kingpins to hide their illicit earnings.

On a 406-0 vote Wednesday, the House approved a bill that, for the first time, would let regulators revoke the charters and deposit insurance of banks and savings and loan institutions convicted of money-laundering.

However, under intense opposition from the Bush administration, the Federal Reserve and the banking industry, the House refused to take the first step toward making banks keep detailed records on the source and destination of wire transfers through which most drug profits are funneled.

The House defeated, 283-127, an amendment by Rep. Esteban Torres, D-Calif., to establish a pilot program in drug center cities that would require banks to keep records of the names, addresses and account numbers of parties on both sides of a wire transfer.

Legislation in the Senate is awaiting action by the Senate Banking Committee.

-Associated Press

by CNB