SACRAMENTO — A measure aimed at prohibiting criminals from laundering illegal drug profits through banks and other financial institutions sailed through the Senate Judiciary Committee Tuesday.
The bill, sponsored by the Atty. Gen. John Van de Kamp and carried by Sen. Dan McCorquodale (D-San Jose), would help law enforcement authorities catch drug traffickers who are believed to conceal an estimated $10 billion to $20 billion in illegal profits in California banks each year.
Law enforcement officials have said that California holds the notorious distinction of being a national haven for money laundering and that criminals are moving in from states where money laundering laws have been toughened.
McCorquodale told the committee his measure is "an effort to try to get to the people who make the big money in drugs." It was approved 7 to 0 and went to the Appropriations Committee for further consideration.