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U.S. SENATE COMMITTEE ON

BANKING, HOUSING, AND URBAN AFFAII

Hearing on "The Administration's National Money Laundering Strategy

for 2002."

Prepared Statement of the Honorable Kenneth W. Dam

Deputy Secretary of the Treasury
9:30 a.m., Thursday, October 3, 2002 - Dirksen 538

Chairman Sarbanes, Ranking Member Gramm, and distinguished members of the

Committee, thank you for inviting me to testify about the implementation of the USA
PATRIOT Act and the National Money Laundering Strategy. In many ways, the National
Money Laundering Strategy and the PATRIOT Act regulations are central to the war on
terrorism. I applaud the Committee for its work in passing the PATRIOT Act and its
continued interest in the success of the National Money Laundering Strategy. I look
forward to continuing to work with the Committee as we further implement the Act.

Before reviewing the work we have done to implement the Act and discuss the status of
the 2002 National Money Laundering Strategy, I wish to update the Committee on the
progress we are making on the financial front of the war on terrorism. Along with my
testimony, I am submitting a document entitled, "Contributions by the Department of the
Treasury to the Financial War on Terrorism." This document is available on our website
at http://www.treas.gov/press/releases/reports/2002910184556291211 .pdf.

The President has emphasized that the financial front of the war on terror is critically
important to America's success in fighting terrorism. The President has directed the
Secretary of the Treasury and the Department, in coordination with other departments of
the federal government and with other nations, fight this front on the war on terrorism. As
set forth in Goal 2 of the National Money Laundering Strategy, the long-term battle
against terrorist financing requires a multi-faceted approach: (1) intelligence gathering;
(2) freezing of suspect assets; (3) law enforcement actions; (4) diplomatic efforts and
outreach; (5) smarter regulatory scrutiny; (6) outreach to the financial sector; and (7)
capacity building for other governments and the financial sector. This is an integrated
inter-agency strategy because these efforts draw on the expertise and resources of the
Treasury Department and our sister departments and agencies, as well as our foreign
partners and the private sector.

As Deputy Secretary of the Treasury, I ensure that this strategy and the Secretary's

http://banking.senate.gov/02_10hrg/100302/dam.htm 4/30/2003