milicorn

ruminations on international financing and whatever

Sunday, December 01, 2002

The Senate Permanent Subcommittee on Investigations held hearings on private banking in 1999. About one trillion goes through private banks each year. The creation of shell companies and the opening of accounts in offshore havens are reviewed by supervisors but in practice, private bank oversight is weak or ignored. In theory, the United States Patriot Act will require more scrutiny, but banks want the overseas capital and competitors elsewhere stand waiting to see.