US to get tough on money-laundering

The Clinton administration plans to ask Congress for new powers to combat money-laundering.

The announcement was made by the US Treasury Secretary, Lawrence Summers, who said the measures include barring US institutions from doing business with offshore financial centres deemed to pose a threat.

Correspondents say the proposals form part of the government's efforts to tighten money-laundering laws after the Bank of New York was found to have acted as a conduit for about seven-billion dollars in Russian money, some of which investigators believe came from illegal activities. Addressing bankers in Washington, Mr Summers said Russia, Colombia and Nigeria were the biggest sources of illicit funds, while Nauru, Dominica, and Liechtenstein were among those countries with lax regulations against money-laundering.

From the newsroom of the BBC World Service