mr. schweikert. thank you for the time and the opportunity to talk about this a little bit without the pressures of the two-minute timer or three-minute timer, talk about something in detail for a change in this house. it merits the discussion. my experience with it, mr. schweikert, was exactly the same as yours well, not exactly the same i'm not from the resort part of south carolina i'm from the more rural, inland part of the state. but we've got a lot of freeways and a lot of small businesses operating hotels. a lot of them owned by asian americans. i was approached by a group of indian-american hotel owners last year, these are folks, mom and pop operations, they might own one hotel, maybe two. they told me about the pool lifts having to go in. a lot of them had portable lifts, so they had the ability to do that. similar to your story, none of them had ever been asked. but the department of justice came in and said, you know what? we are going to require you, under the terms of the americans with

mr. schweikert: do we have investigations in panama in regards to certain issues? mr. farah: there are. what david asher said is true. you have a lot of good, smart people operating in severe resource constraints and when i -- you have the case of a 311 designation that collapsed. they had three branches operating in panama. in that branch we had $2 billion of a venezuelan oil company and brushes organized crime and china's organized crime. when you talk to the authority they do not have the resources to reach out and do all that stuff. it is great information, we would like to help, we have three people to look at 45 cases and a lot get dropped. mr. schweikert: three weeks ago i was in panama and sat down with a parliamentarian from one of the countries you mentioned and he swears that he actually sat there and watched the check from ultimately iran being deposited, and has tried to speak about it publicly and has made very little progress. dr. asher, walk me through. i am trying to get my head around how formalized this is. we had a hearing that talked about venezuela. there was almos

mr. schweikert, for five minutes. >> thank you. we try to get through so much in five minutes.rying to understand flow and also cost, discounts. drug cartel sells its illicit products this north america. first, how does it get the cash back across the border in is it converting it to gold? carrying suitcases of cash? how are they getting it to central america first? what would your opinion be? then i'll ask if they end up in ecuador, what are they being charged? is there -- what's the cost of money laundering? walk me through a couple of the steps. >> thank you. i think on the drug trade, a lot of the money goes back in bulk cash. a lot goes back in wire transfers and bank transfers into central america. the cost is generally about 17% to 22%. there are banks in central america where if you deposit over a certain amount of money generally in the neighborhood of 3 or 4 million, they create all your tax records employment records, everything. that money is now untraceable. it's one of the full services that some of the banks are offering. >> mr. farah how much do you think is goi

mr. schweikert is recognized. >> , and. okay. a little discussion may go away from the legislation that is being vetted. mr. oxman from i listen you seem to be the most practical on the panel. is that a fair -- >> i guess i've been voted. >> can we walk through a couple mechanics? first, the philosophical box i want to work from is if you and i wanted to design as robust a system as possible i'm not asking practical but possible today where i still have the use of my financial instruments, my credit cards online at the retailer come in any fashion it may be what would i be doing? because when we said something in his car to cover your skill with such high hopes for tokenization hand-off and the randomization of the designs of those tokens. is it token plus? if you and i were designing a system here in making sure that if we work on the legislation that it has and openness to grab tomorrows technology, what should we be doing? >> a system designed from scratch would ensure that actual information that can be tied back to you or you