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A BILL TO AMEND THE FEDERAL DEPOSIT INSURANCE ACT
DECEMBER 4, 10, 1969; FEBRUARY 10, MARCH 2, AND 9, 1970
Printed for the use of the
U.S. GOVERNMENT PRINTING OFFICE
Bartimo, Frank A., Assistant General Counsel, Manpower and Reserve Af-
Leval, Pierre, former chief attorney, appellate division, southern district
Morgenthau, Robert N., U.S. Attorney for the southern district of New
Pollack, Irving M., Director, Division of Trading and Markets, Securities
and Exchange Commission, accompanied by Stanley Sporkin, Associate
Director; Ira H. Pearce, Special Counsel; and Allan S. Mostoff, Asso-
ciate Director, Division of Corporate Regulation.
Rossides, Hon. Éugene T., Assistant Secretary of the Treasury for Enforce-
ment and Operations, accompanied by Roy T. Englert, Deputy General
Counsel; Robert T. Cole, Special Assistant for International Tax Affairs;
Michael Bradfield, Assistant General Counsel; and Ira Tannebaum,
Rossides, Hon. Eugene T., Assistant Secretary of the Treasury for En-
Somer, Clifford C., vice president, American Bankers Association, accom-
panied by William Heffelfinger, staff representative, American Bankers
Thrower, Hon. Randolph W., Commissioner, Internal Revenue Service,
Williford, Frederick L., executive vice president, National Microfilm Asso-
ciation, accompanied by Jerry P. Smith, marketing coordinator, financial
markets, Business Systems Markets Division, Eastman Kodak Co.,
Rochester, N. Y.; and Art Spaulding, staff assistant to the vice president,
engineering, Business Equipment Group, Bell & Howell Co., Chicago,
Wilson, Hon. Will, Assistant U.S. Attorney General_.
American Bankers Association, comments on Treasury Department's
Bartimo, Frank A.:
Information on banking facilities in Vietnam, Hong Kong, Morocco,
List of banks doing business in South Vietnam_.
Committee of Foreign-Owned Banks, comments on bank secrecy legisla-
"Eastman Kodak Division Helps Banks To Find Needle in a Hay-
stack of Corporation Dividend Checks," article from the American
"Improving the Proof-Transit Operation," article by Arthur Van
Kennedy, Hon. David M., Secretary of the Treasury, letter to Hon.
National Association of Securities Dealers, Inc., statement of_
Documents pertaining to SEC's litigation with Investors Overseas
National Association of Supervisors of State Banks, statement of ____.
Comments on the testimony of Robert M. Morgenthau on H.R. 15073_
Comments on Treasury Department statement on H.R. 15073_-
Advertisement of "Swiss Credit Bank," from the Wall Street Journal,
"American Seized in Netherlands in Plot on HRA," article from the
New York Times, January 15, 1969---
Comparison of Internal Revenue Service testimony, excerpts of
Copies of four checks stolen and forged from the Human Resources
"Errors and Omissions," editorial from New York Times, February
"Eight Indicted in Alleged Plot To Defraud United States Through
Use of Swiss Bank Accounts," article from the Wall Street Journal,
Letter from Hon. David M. Kennedy, Secretary of the Treasury,
dated January 13, 1970, with an attached letter from Hon. Eugene
T. Rossides, Assistant Secretary of the Treasury, dated Janu-
Letter from Hon. Eugene T. Rossides, dated February 9, 1970.
Letter to Hon. David M. Kennedy, Secretary of the Treasury, dated
"Report by January 31, United States Directs HRA" article from
State Department telegram approved by Hon. Eugene T. Rossides,
"Top Swiss Court Lets U.S. Look at Bank Files," article from the
Approval of State Department telegram in regard to Mutual Judicial
The committee met, pursuant to notice, at 9:15 a.m., in room 2128, Rayburn House Office Building, Hon. Wright Patman (chairman), presiding.
Present: Representatives Patman, Barrett, Sullivan, Reuss, Moorhead, Stephens, St Germain, Gonzalez, Minish, Hanna, Gettys, Annunzio, Rees, Galifianakis, Bevill, Griffin, Hanley, Brasco, Chappell, Widnall, Halpern, Clawson, Stanton, Blackburn, Brown, and Williams.
Chairman PATMAN. The committee will please come to order.
Mr. Morgenthau and Mr. Wilson, you may come around and take the witness stand, if you will, please; and Mr. Leval, will you come forward, please.
This morning we begin hearings on H.R. 15073, a bill to amend the Federal Deposit Insurance Corporation Act to authorize the Secretary of the Treasury to issue regulations requiring the maintenance of certain records by commercial banks. Further, the bill requires the filing of reports and maintenance of records pursuant to regulations issued by the Secretary, by those who do business with foreign financial institutions in jurisdictions with bank secrecy laws. (The text of H. R. 15073 follows:)
[H.R. 15073, 91st Cong., first sess.]
A BILL To amend the Federal Deposit Insurance Act to require insured banks to maintain certain records, to require that certain transactions in United States currency be reported to the Department of the Treasury, and for other purposes
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
101. Retention of records by insured banks.
Section 101. Retention of records by insured banks
The Federal Deposit Insurance Act is amended (1) by redesignating sections 21 and 22 as 22 and 23, respectively, and (2) by inserting the following new section immediately after section 20:
"SEC. 21. (a) The purposes of this section are (1) to facilitate the supervision of the business of banking, (2) to aid duly constituted authorities in lawful investi(1)