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Gov’t to expand money transfer rules

WASHINGTON, D.C. — The Obama administration is proposing that banks report all electronic money transfers in and out of the country, expanding its anti-terrorism requirements for financial institutions.

Officials at the Treasury Department’s Financial Crimes Enforcement Network said Monday that the new requirement would boost their ability to track the source of funding for terrorists.

Currently banks are required to only report cash transactions above $10,000. They are also required to keep records on all electronic transfers of money in and out of the country above $3,000 and provide that information to law enforcement officials if asked to do so.

James H. Freis Jr., the director of the Treasury agency, said that widening the reporting requirement would provide benefits with only a “modest cost to industry.”

The proposed expansion of requirements would not take effect until 2012. Under current requirements, financial institutions each year file about 14 million reports on transactions in excess of $10,000.