Pubdate: Mar 3, 1998 Source: Reuters BRAZIL'S CARDOSO APPROVES MONEY LAUNDERING LAW BRASILIA (Reuters) - President Fernando Henrique Cardoso on Tuesday signed into law a bill criminalizing money laundering, in an attempt to end Brazil's reputation as a clearing house for the proceeds of organized crime. The bill, approved by the Senate last month, provides for prison terms of three to 10 years for the crime. The United States had long urged Brazil to introduce laws fighting money laundering. Brazil's location close to cocaine-producing countries and its strict bank secrecy laws are believed to have attracted drug gangs, gun-runners, smugglers and corrupt officials seeking to disguise their cash. ``We think it's a very positive development and that it will be important too to fight drug trafficking,'' said a spokeswoman for the U.S. Embassy in Brasilia. Before the law was introduced, it was virtually impossible to prosecute banks and financial institutions suspected of handling hot money. A probe by Brazil's Senate last year into municipal debt fraud found evidence of $1 billion in illegal trades carried out by banks and brokerages. No one was charged because there was no adequate legislation.