June 30, 2006
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Treasury Announces Private Sector Initiative with Latin American Counterparts

Initiative Will Focus on Strengthening Defenses Against Money Laundering, Terrorist Financing

The U.S. Department of the Treasury Thursday helped launch a U.S.-Latin America Private Sector Dialogue (US-LA PSD) focused on strengthening defenses against money laundering and terrorist financing.

Fifty key U.S. and Latin American private and public sector representatives held a roundtable at the Treasury where they began discussing ways to facilitate and improve private sector information and best practices sharing on the implementation of core anti-money laundering/counter-terrorist financing (AML/CFT) controls. Through their discussion, roundtable participants agreed to commence a long term private sector dialogue on AML/CFT through a series of conferences, seminars and workshops that join U.S. and Latin America banks in a direct exchange.

"The Treasury Department recognizes the importance of the longstanding ties between the U.S. and Latin American financial sectors," said Pat O'Brien, Treasury Assistant Secretary for Terrorist Financing. "With this in mind, the Treasury is eager to help launch and facilitate this dialogue to help bolster our defenses against the dual threats of terrorist financing and money laundering, and foster greater understanding and cooperation between our regions."

Based on the recent success of a March 2006 conference in Cairo to launch the US-Middle East/North Africa Private Sector Dialogue on AML/CFT (US-MENA PSD), Treasury officials are confident that a similarly successful initiative with Latin American counterparts can work.

"The most important role in this process is for banks to work with the government - not only to assist to government in efforts to combat money laundering and terrorist financing, but also to encourage the government to continue to improve its systems," said Gustavo Rodrigues, President of GAFISUD (Financial Action Task Force Style Regional Body for South America) and President of the Brazilian Financial Intelligence Unit (FIU).

"This Roundtable was a special opportunity to facilitate the beginning of a productive dialogue between US and Latin American banks about AML/CFT implementation, with the support and participation of the regulatory authorities. The Central Bank of Argentina is a true supporter of this initiative," said Zenon Biagosch, Director and Vice Superintendent of the Central Bank of Argentina.

"With the strong support of the U.S. and Latin American banking communities, leadership from key parties such as GAFISUD, and financial policy and supervisory authorities from both regions, we look forward to seeing successes and taking key strides with Latin America," O'Brien said.

The Treasury Department is dedicated to promoting prosperity and stability in the U.S. and global financial systems. As part of this overarching objective, the Treasury Department seeks to promote awareness and implementation of core AML/CFT standards internationally to safeguard the financial system against rogue nations, terrorist facilitators, money launderers, drug kingpins, and other international security threats. In addition to its bilateral and multilateral efforts, the Treasury Department is working with committed partners worldwide to help promote private sector AML/CFT implementation.

Today's Roundtable consisted of representatives from the Treasury, including its Office of Foreign Assets Control (OFAC), the Financial Crimes Enforcement Network (FinCEN), and the Office of the Comptroller of the Currency, the Federal Reserve, and the U.S. Department of State. Zenon Biagosch and Gustavo Rodrigues played leadership roles, and were joined by members of the Latin American Bankers Association (FELABAN), the Florida International Bankers Association (FIBA), the American Bankers Association (ABA), as well as representatives of major U.S. banks and others.

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