Legislators look at ways to block terrrorist money transfers

Iowa legislators are considering a proposal that’s part of the effort to clamp off the money that bankrolls terrorist organizations. Senator Steve Warnstadt, a democrat from Sioux City, says the bill that passed the Iowa Senate this week targets unlicensed businesses that transfer money electronically. Warnstadt says there’s a growing tendency for terrorists to use unlicensed agents to wire money. Last week, the feds caught an unlicensed wire transmitter sending seven MILLION dollars to Iraq. Warnstadt says some of the September 11th hijackers got their money through such unlicensed wire transfers. In addition to the homeland security aspects of the bill, Warnstadt says it’ll also help protect consumers who use agencies to “wire” or send their money. The bill sets up a licensing process for any money transfer agency that’s not already licensed. Most businesses that transfer money like Western Union are already licensed and are not affected by the bill, and it does not apply to insurance companies or other firms that transfer money electronically as a regular course of business, but don’t charge customers a fee for such transfers.