Tuesday, October 18, 2011

WASHINGTON - Senate Judiciary Committee Ranking Member Chuck Grassley today introduced comprehensive legislation that will strengthen money laundering statutes and will make it more difficult for terrorists, drug traffickers and other criminal organizations to finance their operations by using loopholes to easily transfer money around the world.  Grassley introduced the bill with Senator Dianne Feinstein of California.

"Every day there are terrorists and criminals who are looking for new ways to move their funding operations and evade authorities.  Our laws must keep pace with the new and emerging trends these people exploit to fund their endeavors," Grassley said. "We have to hit them where it hurts most, in their pocketbooks, and we can't do this if we do not give our law enforcement agencies the tools they need to stop the flow of illicit money."

Grassley said his bill fixes one of the most egregious money laundering loopholes that allows prepaid access cards, or cash cards, to cross international borders without facing any scrutiny.  For example, criminals can put thousands or even millions of dollars on these cards, and not have to declare it as they cross the border.  Grassley's legislation would require the cards to be reported to border authorities if the card holds more than $10,000.

In addition, the bill addresses concerns that bulk cash smugglers continue to use loopholes in federal laws to evade prosecution.  The bill also works to fix procedural and definitional problems to combat money laundering, such as dealing with comingled funds, prosecutors being able to charge money laundering as a course of conduct, allowing wiretaps as an investigative tool for money laundering cases, and reverse money laundering operations.

It also addresses the Supreme Court decision in Cuellar v. United States, which created a loophole in the bulk cash smuggling statute, by incorporating a recommendation the Supreme Court proposed to ensure that drug smugglers are not allowed to break the law without consequence simply by evading knowing the full plan of the smuggling operation.

Here are the major points of the legislation.

• Simplifies the predicate offenses that give rise to money laundering offenses,
• Makes it a crime to participate in "reverse money laundering," or knowingly transporting money or goods used or meant to be used in money laundering,

• Removes inconsistent language that created an ambiguity as to whether a defendant had to have knowledge that funds were involved in illegal activity in general or a particular type of criminal activity,

• Strikes the requirement that the government prove a defendant knew the purpose and plan behind transportation of laundered money, closing a loophole that allows mules to transport laundered money or goods with impunity,

• Makes prepaid access devices, such as stored value cards, subject to anti-money laundering reporting requirements,

• Fixes the ambiguity of how to treat the commingling funds and clarifies that a case can aggregate a series of closely related transactions under the $10,000 threshold to meet the requirement of $10,000 in criminally-derived property,

• Adds a definition of "money transmitting business" to clarify that it applies to more than just storefront businesses.

A news conference held this morning at the East Point Metro Facility, 1201 14th Avenue, East Moline, Illinois announced the establishment of a new foundation for the community of East Moline.

Chairman of the newly formed East Moline Foundation, Doug Reynolds said, "I grew up, went to school and had my business in East Moline. I want to give back to the community. This can be accomplished by creating a foundation. Other communities have a foundation...now East Moline will have one too. We have many needs that need to be answered." The group also announced a Leadership Challenge Grant of $108,000 that will match all gifts made to the East Moline Foundation in the next year. The amount of the fund signifies the 108 year old history of the City of East Moline as it was established in 1903.

Co-founder Ben Ryan, Jr. noted, "Many loyal East Moline natives toil at their life's work only to  find that, when finally successful, no entity is available for promotional or  charitable gifts specifically directed to East Moline.  An East Moline  Foundation will alleviate this short coming and fill a need long overdue for a city of our history and size."

At this morning's news conference, Bob Baecke said, "During the many years which East Moline has been incorporated as a city, there has never been a foundation established for charitable gifts.  We now have that opportunity and we are hopeful that the citizens of East Moline will join with us in making the East Moline Foundation a success for the future of our city."

East Moline attorney, Bill Phares, noted, "East Moline has, for many years, lacked a permanent organization to independently evaluate community goals and needs. We have needed a way to solicit contributions to fund programs to achieve those goals and meet those needs. The East Moline Foundation will serve as this permanent organization for the citizens of East Moline.

The East Moline Foundation will be led by an initial Board of Bob Baecke, Bill Phares, Ben Ryan, Jr. and Doug Reynolds. Other citizens will be encouraged to join the work and leadership of the East Moline Foundation. Donors and volunteers should contact: William Phares, P.O. Box 457, East Moline, IL 61244-0457 (309) 796-0170

Leaders also acknowledged the partnership with The Moline Foundation as the East Moline Foundation will be formed as an affiliate fund with their neighboring community foundation to the west.

The Moline Foundation Board Chairman Jon Tunberg said, "It's a special day for East Moline and Moline and one that will influence lives in our communities for years to come."

As a charitable foundation, The East Moline Foundation will offer a range of charitable funds, allowing donors to advance a cause such as education or the environment, support an individual organization, provide flexible support for community needs or recommend individual grants. The East Moline Foundation will provide funding to health, human services, education, community, workforce and economic development development, the arts and other charitable organizations which benefit the citizens of East Moline and the surrounding area in the Illinois Quad Cities. The East Moline Foundation will receive and administer charitable gifts, grow an endowment fund, and handle additional funds to benefit donor wishes. It will also serve as a catalyst and convener to bring about solutions to problems affecting quality of life in the community.

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While teaching children about how to safely chase tornadoes, the book is also benefiting local kids this holiday season. A portion of the proceeds from the sale of the book will go toward Genesis Health Systems Flu Free Clinic to provide free flu shots for kids.

This is the second book for Wettstone who co-authored "Un-Natural Disasters: Iowa's E-F 5 Tornado and the Historic Floods of 2008" with Swails published in 2008.  Swails is also the author of "Superstorms: Extreme Weather in the Heart of the Heartland" published in 2004.  Both Swails and Wettstone are storm chasers and most recently followed Hurricane Irene to New York City witnessing her coming ashore onConey Island in August 2011.  They have also chased tornadoes and in 2010 came up against an EF 3 inOklahoma.

Terry and Carolyn will be signing books Friday October 21st at the Community Bank in Wapello, Iowafrom 1-3 p.m.  For more information, Carolyn and Terry can be reached at 309 523 9116 or carolynswettstone@yahoo.com.

"Our bill maintains the much needed safety net for farmers so we are assured that the American people will have a safe, abundant and inexpensive food supply.  It also closes loopholes that have reduced urban support for the farm bill," Grassley said.  "This is an easy way to save some additional funds in what's a very difficult task for the committee."

"Particularly given the budget environment we're in, it's important that our farm programs are effectively targeted to those who need the assistance the most: the small and medium-sized family farmers.  I hope that our bill can be incorporated into any recommendations made by the deficit reduction committee," said Johnson.

Grassley and Johnson introduced the legislation on June 9, 2011.  The legislation would set a limit of $250,000 for married couples for farm payments in an attempt to better target farm program payments to family farmers.  Specifically, the bill caps direct payments at $40,000; counter-cyclical payments at $60,000; and marketing loan gains (including forfeitures), loan deficiency payments, and commodity certificates at $150,000.  The bill also improves the standard which the Department of Agriculture uses to determine farmers who are actively engaged in their operations.

Here is a copy of the text of the letter.  A signed copy of the letter can be found by clicking here.

October 14, 2011

The Honorable Patty Murray                         The Honorable Jeb Hensarling

Co-Chair                       Co-Chair

Joint Select Committee on Deficit Reduction            Joint Select Committee on Deficit Reduction

The Capitol                        The Capitol

Washington, D.C.                           Washington, D.C.

Dear Senator Murray and Representative Hensarling:

We are truly in uncharted territory with the debt reduction process now before us.  We are hard pressed to recall any process quite as unique as this one during our careers here in Congress.  You and the rest of the Joint Select Committee have a big task in front of you, and surely there will be some difficult decisions made in the coming weeks.

With all the hard decisions before you, we are providing a proposal that should be a common sense change to agriculture policy.  It is time for us to finally set hard payment limits on all commodity farm programs, as well as close the loopholes in current payment limitation law.

The specific changes we are proposing to the Joint Select Committee are contained in the bill we introduced, the Rural America Preservation Act of 2011 (S.1161).  That bill would do the following:

• It would establish caps of $20,000 on direct (fixed) payments, $30,000 on counter cyclical payments, and $75,000 on loan deficiency payments and marketing loan gains.

• The combined limit for married couples would be $250,000.  These limits would be reduced by varying amounts depending on the farmer's participation in ACRE, essentially setting the payment limitations at the effective caps, less the reductions in direct payments and marketing loan gains.

• The amendment improves the "measurable standard" by which USDA determines who should and should not receive farm payments.  It requires that management be personally provided on a regular, substantial, and continuous basis through direct supervision and direction of farming activities and labor and on-site services.

• It would provide savings of approximately $1.5 billion.

While we support commodity programs that provide a needed safety-net for farmers, the programs should not help big farmers get even bigger.  There's no problem with a farmer growing his operation, but the taxpayer should not have to subsidize it.  Under current law, nearly 70 percent of commodity farm payments go to the largest 10 percent of farmers.  There comes a point where some farms reach levels that allow them to weather the tough times on their own. Smaller farms do not have the same luxury.  In addition, setting a measurable standard for management of a farming operation will help prevent abuse of farm programs that is present under current law.

These proposed changes to payment limitations will help us target farm payments to those who really need them, the small- and medium-sized farmers who need a safety-net to help them get through rough patches as they produce this nation's food.

We understand there may be proposals submitted to the Joint Select Committee that would fundamentally change the commodity farm programs.  If one of these proposals is adopted by the Joint Select Committee, the language of our bill also would need to be revised to set a meaningful payment limitation for commodity programs.  Whatever the result, our main point is that setting a meaningful payment limitation and closing current loopholes in the law will provide savings and add integrity to the farm programs.  No matter what decision the Joint Select Committee makes regarding commodity programs, we urge you to ensure payment limitations and closing of loopholes plays a meaningful part.

We request the Joint Select Committee consider the policy reforms set out above, and if you have any questions, please contact us.

Sincerely,

Charles E. Grassley                       Tim Johnson

United States Senator