WASHINGTON -- ASTA asked the Treasury Department to exempt travel
agencies from any new financial reporting rules that might be
adopted as part of a government crackdown on money laundering.
ASTA also volunteered to develop educational materials for
agents and to manage an awareness campaign alerting travel sellers
to the kinds of transactions that could be used to launder money
for terrorists, drug lords or other undesirables.
Under the USA Patriot Act, enacted in the aftermath of 9/11, the
Treasury Department is adopting various strategies to cut off the
flow of funds to terrorists and is reviewing a list of industries
to determine if new rules are necessary to help law enforcement
officials detect money laundering.
That list includes travel agencies. As reported, the
department's Financial Crimes Enforcement Network requested
information from the industry on whether specific rules for travel
agencies are necessary.
ASTA filed a paper stating that the government's goal should be
to deter terrorists "without unnecessarily burdening legitimate
businesses in a struggling industry."
To make its case, ASTA surveyed members and, based on 376
responses, concluded that retail travel offers few opportunities
for money laundering.
A few agencies offer foreign exchange and traveler's checks (16%
and 6%, respectively), but for the most part ASTA said agents don't
engage in the kinds of transactions that attract money
launderers.
The survey revealed only 2.9% of agents have ever seen a cash
transaction of $10,000, the federal minimum that requires a report
to the Internal Revenue Service.
The survey also showed that 74% of transactions involve credit
cards, 20% checks and 5.6% cash. In addition, 85% of agents know
their clients personally, and, even then, a substantial majority
check identification when taking credit cards or checks.
These factors, ASTA said, justify exempting the industry as a
whole.
At the same time, however, ASTA volunteered to prepare,
distribute and update educational materials to "inform travel
agency personnel what money laundering is, why it is harmful and
must be controlled, what attempts are most likely to occur in the
travel agency business and what must be done to thwart such
attempts."
ASTA suggested agencies provide an annual certification that
management "has read the materials and is aware of their
recommendations."
It also suggested a hot line for agencies and other small
businesses to use to inquire about suspicious transactions.