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SunTrust: Terrorists slipped under radar
By JEFF HARRINGTON, Times Staff Writer The indictment of Zacarias Moussaoui as an alleged terrorist conspirator gives a deeper look into how the Florida operation of SunTrust Banks was used to funnel terrorist funds. Although many of the transactions were known before, the indictment for the first time paints a vivid picture in public documents about the financial dealings of the 19 hijackers in September's attacks and their co-conspirators. Several of the suspected hijackers opened a total of nine accounts at SunTrust branches in Florida using a few thousand dollars in cash and travelers checks. Some of the hijackers used check cards from SunTrust and Dime Savings in New York to buy electronic airline tickets and used SunTrust checks to pay for flight lessons. But SunTrust spokesman Barry Koling said the connection has not spurred any internal policy changes at the Atlanta bank. SunTrust has repeatedly pointed out that none of the suspected hijackers conducted transactions greater than $10,000 in cash, the only transactions required to be reported to federal regulators. Nor was there a pattern of large cash deposits just under the $10,000 threshold. "Nothing in these events points to any deficiencies in our procedures or policies," Koling said Wednesday. "We followed all standard banking procedures and applicable laws, regulations and rules." After Sept. 11, "we took a hard look at whether we could've or should've done something or seen something and the answer is no," Koling added. "We're doing what we have to do." The indictment shows transfers of $19,985 and $69,985 wired into Florida SunTrust accounts of hijackers Mohamed Atta and Marwan al-Shehhi on Aug. 30, 2000, and Sept. 18, 2000, respectively. But those transfers weren't in cash, so there was no requirement for SunTrust to flag them as suspicious. In fact, Koling said it would be unrealistic to try to scrutinize every wire payment of more than $10,000 transferred from one bank account to another. Such moves are made routinely for everything from car loans to mortgage refinancing. "It happens thousands of times a day," he said. "It's just no big deal." The Florida division of banking within the state comptroller's office likewise said it sees no need for any immediate changes despite the state's prominent role as a base for the hijackers. Banking division director Alex Hager said Comptroller Bob Milligan is deferring to federal regulators to lead the money laundering battle. "The Patriot Act pretty much covers all of our issues," Hager said, referring to federal legislation signed by President Bush in October. In addition to strengthening homeland security, the act establishes stricter guidelines to monitor suspicious banking and trading activity. One provision in the new law, effective Dec. 25, bans U.S. bank accounts for foreign shell banks that do not have a U.S. presence. Another directs the Treasury secretary to publish rules for broker dealers to monitor suspicious financial transactions.
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From the Times Business report
From the AP
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