ENEVIEVEDEVerDate Nov 24 2008 01:34 Nov 24, 2009Jkt 050304PO 00000Frm - PDF document

ENEVIEVEDEVerDate Nov 24 2008 01:34 Nov 24, 2009Jkt 050304PO 00000Frm 00002Fmt 5904Sfmt 5904E:\HR\OC\A304.XXXA304 CONTENTS Opening statement of Chairman Shelby ................................................................1 Senator Bennett ................................................................................................3 Senator Stabenow .............................................................................................4 Senator Allard ...................................................................................................5 Senator Sarbanes ..............................................................................................5 Senator Enzi .....................................................................................................6 Senator Bunning ...............................................................................................8 Alberto Gonzales, Attorney General of the United States ...................................9 Prepared Statement .........................................................................................39 ing and Exploited Children .................................................................................25 Prepared Statement .........................................................................................50 Senator Shelby ...........................................................................................103 Kim Mowder, Senior Vice President, Bank of America Merchant Services .......27 Prepared Statement .........................................................................................60 Standard Chartered Bank ...................................................................................29 Prepared Statement .........................................................................................69 MasterCard Worldwide ........................................................................................31 Prepared Statement .........................................................................................89 Senator Shelby ...........................................................................................106 Mark MacCarthy, Senior Vice President, Public Policy, Visa USA, Inc. ............33 Prepared Statement .........................................................................................95 VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00003Fmt 5904Sfmt 5904E:\HR\OC\A304.XXXA304 VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00004Fmt 5904Sfmt 5904E:\HR\OC\A304.XXXA304 COMBATING CHILD PORNOGRAPHY BY ELIMI-NATING PORNOGRAPHERS’ ACCESS TO THE OMMITTEEONThe Committee met at 10:07 a.m., in room SD–538, Dirksen Sen-ing problem of child pornography on the Internet, and the roles the nity can play in combating this global problem. We will hear from net and the credit card system to exploit and abuse innocent chil-VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00005Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 If it were in the realm of possibility to eliminate the incompre-In my role as Chairman of the Senate Banking Committee, I problem. We have the technology, resources and expertise—but the I look forward to hearing from our witnesses as we discuss these This morning, we will hear first from The Honorable Alberto R. Gonzales, who, since taking the helm at Justice, has made com-new laws to combat those who would harm children—particularly the recently enacted Adam Walsh Child Protection and Safety Act Ms. Kim Mowder, Senior Vice President of Bank of America Mer-VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00006Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 from Utah. I am going to read excerpts from a release that came Brian—that is the pseudonym used—had used to call the child be-firmed that a computer recovered from the basement of the cafSo here is an actual case, interstate, from Salt Lake City to am going to take you back to the Reagan administration when your little has been done about these recommendations, and I am going VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00007Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 I am told and cannot verify that at least one of your predecessors urgency about this issue. So I am pleased that you are here, and I am very concerned about the information we are uncovering, as are coming from here, coming from the United States. Half—more mechanism for illegal activity, we all agree it should be a tool to we move forward. We should also be able to stay ahead of the pred-bers, it may not seem far away for us working on a daily basis, but dren. I am very proud to be one of the sponsors of the Internet VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00008Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 . Mr. Chairman, I would like to join my col-ship on this particular matter. I would also like to join them in is important that we put together a program that really yields re-I am pleased to see that Qwest Communications in Colorado has ploited Children to form a coalition to increase parental and guard-Centre for Missing and Exploited Children to form the Financial tem to fight the spread of child pornography over the Internet. VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00009Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 I think as all my colleagues know, Chairman Shelby convened a secrecy, from anywhere in the world. Without access to the pay-is to ‘‘follow the money.’’ We can expect to find many of the com-movement of funds derived from this criminal activity. I am encouraged that leading members of the payment system, I am pleased to join with my colleagues in welcoming the Attor-members of the panel. We need to do everything we can to stomp them and making those images and videos available to child preda-tors. We need to stop those terrible crimes, and I look forward to hearing from the witnesses, with the ideas about what can be done. The sexual victimization of children is a tremendous problem in our Nation, and, unfortunately, the problem is probably more wide-VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00010Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 follow them into adulthood and forever alter their lives. In addi-the Senate passed and President Bush signed the Adam Walsh Many of the proposals attack the problem of child pornography VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00011Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 I am committed to providing these individuals with the resources come all of our witnesses today. I am especially glad to see that At-extend a warm welcome to one of my fellow Kentuckians who is on the second panel, Ms. Kim Mowder with the Bank of America. Mr. Chairman, I am pleased that the Committee will be hearing Like my colleagues here today, I believe that sexual predators are among the worst criminals in our society. My thoughts and my heart to hear stories in the news about children who have been I am glad the industry has taken a leading role in this, and I of the hearing record in its entirety. We welcome you again. You VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00012Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 . Thank you for having me here children from exploitation on the Internet. ment must make the Internet a battleground. We must fight every the same is true for Members of this Committee. We are all aware that society. That is why protecting our children from sexual ex-VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00013Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 these images and to distribute them to each other. Once images are from circulation. Even more disturbing is the fact that offenders The challenge we face in cyberspace was illustrated by a new na-program called Project Safe Childhood that is helping to coordinate tation. This program is helping law enforcement and community sponse to the problem of online exploitation and abuse of children, one thing we have continually heard from State and local investiga-efforts by passing the Adam Walsh Child Protection and Safety Act earlier this year. The Adam Walsh Act, signed by the President, VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00014Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 Santorum’s work for authoring the provision in the Adam Walsh a uniform system that would help combat this commercial child . An important part of my responsi-with my foreign counterparts, because there are many crimes that items that is on my list to raise with my counterparts in terms of more and more of a problem in foreign countries as well, and my We are also working with the European Union. There is an orga-VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00015Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 cards’ vulnerabilities stem from the ways they are obtained. Pro-tivity reporting program in place. In fact, some issuers flaunt being VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00016Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 are going to adjust to what we do. We are going to have to be lenge. We know that. But it is something that we cannot afford to lose. We have got to prevail, have we not, for our children? problem is enormous and it is immense, but we should not shy away from the challenge. We have an obligation to protect our chil-been in discussions with my G8 counterparts, and this is an issue has been discussed prior to my tenure as Attorney General, but I am not certain of that. VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00017Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 . We will look at that, sir, and give tentially involving the flow of funds derived from the sales of child identified, it is not just a question of U.S. banks. We also need to deal with them through that International Law Section. But it is VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00018Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 tion that we have got from our sister agencies has been very, very We do have a formal mechanism to look at trafficking that is an understanding of the scope of the problem throughout the ad-. Mr. Chairman, I see my time is up. Thank This says to me that law enforcement of other kinds of crimes— tiny Norton. And it seems to me that is the answer to the question VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00019Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 My question to you, Mr. Attorney General, is: Isn’t it time we re-can easily look into and get back to you. Let me just say that we sion report lately. I am not sure they could have imagined the . That is why I am asking you to consider cre-cule from some of the same sources that pooh-poohed the Meese through the Adam Walsh Child Protection Act. And so I suspect if force, I am happy to look at that. I think we are doing a lot, quite VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00020Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 issue. But if we need to do more, I am happy to look at it. . We hope money will never be a problem, Mr. So, Mr. Attorney General, my first question would be just simply: issue just from an enforcement standpoint alone in which we need problem is enormous. It is immense. It presents some tremendous Do we need more resources? We need more resources, quite I must tell you that, of course, the Adam Walsh Child Protection them in juvenile facilities, which is not the best place to put kids VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00021Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 or another, that I have worked in my whole adult career and have If I might just go on, before my time runs out, to a couple of respondent bank accounts. We did not end up passing that and But I am wondering, as you have these discussions now, are connection with a prosecution, my discussions have also centered recall them at this time. . And, Mr. Chairman, I know my time is up. VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00022Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 me just take a moment, Senator, to say that parents have a respon-have to get parents involved. We have to make them understand . Mr. Attorney General, I am going to say it . I am afraid to say that is true, Sen-My first question is: What do you think would be the greatest ob-. We need information, Senator, and under a very strong Constitution. We respect and understand the I talked in my remarks about the issue of data retention. When it submitted. I am not sure if it is appropriate for me to do that, Committee should have before them as they consider this issue. you know, they reluctantly concede this is a problem that is na-tional problem that requires Federal legislation. VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00023Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 program do you think is most likely to be successful? We think that people understand the scope of this problem, but with ads in the past. We are going to partner with the Ad Council successes to date. We are going to continue to push forward and tion to the law enforcement community. We are now able to have think, to measure in the PART program is your educational effort. VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00024Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 ation of this program that you are starting. And if we cannot show . We will look at that, Senator. to do more. You asked me what is our status. We need to do more, VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00025Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 that probably—I will say that I am disappointed in the efforts to children presently is, we seem to be going backwards. And the rea-son I say that we seem to be going backwards is that every time Now, I am asking you as the Attorney General, the chief law en-preempt State law. We have some very dedicated, very committed we need them as partners, quite frankly. And so we need them to VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00026Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 better resources. We have more experience in dealing with these And so, for that reason, it has been my experience that the co-pretty good. And, obviously, from time to time, there are disagree-ments, but my general experience is that the end goal here is, case is handled. We know the person is guilty. We cannot get to them because of some local jurisdiction—or State jurisdiction, for The coalition sort of serves as a clearinghouse. We have folks from the Department of Justice, the FBI, CEOS, the Postal Service, nity. We then make an assessment as to whether or not this is . I know my time is almost—last question. VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00027Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 me sections. you gotten from those governments? We worry about the explosion of child pornography in our coun-me, is a matter of implementation and enforcement. We do not have any sort of problem with the legal standard because the . Well, it seems to me that that really lays the And so it seems to me the challenge is the enforcement and the implementation. We appreciate what the Department of Justice is And, of course, we need to back it with resources from here if we VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00028Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 We now will welcome the members of our second panel: Mr. Center for Missing and Exploited Children; Ms. Kim Mowder, Sen-Members of the Committee. I will be brief and summarize my testi-convened leaders of the financial industry in this room and chal-I am pleased that an international bank, a coalition member, is lem really is, and let me emphasize that we still believe that most of America does not get it. They think this a problem about 20- VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00029Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 younger than 3 years old. That is what this problem is about. Since our March announcement, we have built a mechanism for What I am prepared to report to you today is that, even though efforts of the financial companies and others. We believe that we card for child pornography purposes. We want these processes to mechanisms. These tend to be non-mainstream payment devices, We welcome your help in bringing the rest of the U.S. financial in-Second, we recognize that this is a global phenomenon. We need VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00030Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 a problem that is of a magnitude unimaginable. Mr. Chairman, I am pleased to report to you that we are making bers of the Committee, my name is Kim Mowder. I am the head We applaud the Chairman’s focus on this issue and the resulting coalition that Ernie Allen so ably chairs. We are proud to be a part here in this room. We certainly commend Kathy Casey as well for We are equally proud to be associated with the National Center for Missing and Exploited Children. We subscribe to and whole-I would like to begin my testimony by emphasizing that Bank of pen. We simply have zero tolerance when it comes to issues like ices in America. We have been processing credit cards for mer-chants in our system. We take great pride in our very conservative chant types whom we deem to be unacceptable for a card servicing relationship. We are much more conservative than is legally per-VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00031Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 and maintained for future comparisons. I have listed in my written boring businesses, and based upon information from these sources, the underwriter may decide it is necessary to perform additional We will do whatever is necessary to ensure we are signing mer-expected norm based on the original terms of their processing to, talking directly to card holders to confirm transaction validity VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00032Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 From this investigation, the investigator will determine what, if related to child pornography. We believe strongly that our inves-cussion. My name is Mike DeNoma. I am the Group Executive Di-sumer Bank. My home base is Singapore. In addition to my role at Standard Chartered, I am a member lem is to join forces and brain power with other members of the VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00033Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 countries and have them join forces to combat this serious problem countries by the end of March 2007. We have been working in away from making an important announcement on how it will com-bat this problem on a Singapore level. India, Hong Kong, Thailand, intensity of this problem amongst critical local decisionmakers as lieve the internet must be used to fight it. It is a platform to tell The campaign was developed by a team lead by Standard Char-crease awareness of the global problem of child pornography and to motivate people to visit lightamillion candles.com to pledge their Sunday evening on the website by individuals from 130 countries. 105,000 signatures from 130 countries. campaign. We expect much more coverage in the weeks and guage, with subtitles in English below. We tested it with con-VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00034Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 ber Sarbanes, and Members of the Committee. My name is Jodi Golinsky, and I am Vice President, Regulatory and Public Policy Counsel at MasterCard Worldwide. It is my pleasure to appear be-MasterCard deplores attempts to use our system for illegal pur-vent offending websites from accepting MasterCard-branded pay-We have had great success in impeding these criminals from ac-cessing our system. We recognize, however, that we see only part of the problem and that criminals who are denied access to our sys-tem are quick to look for other payment alternatives. We also rec-criminals, and there must be an effective mechanism for the pri-form the Financial Coalition Against Child Pornography. We VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00035Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 this problem as well. MasterCard has a series of rules that require other things, that acquirers perform due diligence before author-with the rules. We have also proactively educated our customer fi-assist them in detecting and prosecuting child pornographers. In these criminals from using our system does not end the problem, however. We have seen a clear trend in which child pornographers denied access to our system are moving rapidly to alternative pay-ment methods to avoid detection and prosecution. We are not, therefore, content simply to drive these criminals from our system, We believe that our partnership with NCMEC and the coalition VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00036Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 ber Sarbanes, and Members of the Committee. My name is Mark MacCarthy. I am Senior Vice President for Public Policy with Visa, Mr. Chairman, Visa does not allow its payment system to be gram designed to search the Internet to detect child pornography merchants and expel them from the Visa system. I want to describe that program for you in more detail today, but I want to start with raphy by itself. We need to cooperate with others. And that is why, tems joined to form the Financial Coalition Against Child Pornog-involved in this illicit activity, and we will cut them off from our track them down and get rid of them for good. Our own zero tolerance anti-child pornography program has two parts: We have got a set of due diligence requirements, as my col-program designed to detect child pornography sites and get them tem. It is the members of the Visa Payment System themselves We have explicit rules to govern their conduct. One of the rules You have heard from another one of my colleagues at Bank of through. We think that these are important and necessary lines of VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00037Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 As a result, Visa has a monitoring system to identify and elimi-services of an outside firm to search the Internet for child pornog-This firm uses advanced webcrawling and filtering technology to When our search firm detects one of these problematic sites, they Visa cards. As my colleague from MasterCard pointed out, in most quest from law enforcement to keep the site open, Visa instructs get them to take down the Visa logo. Visa’s anti-child pornography program has made progress since August of this year, our search firm examined over 11 million system, and all of these sites were quickly expelled from our sys-Mr. Chairman, in conclusion, let me repeat the point I started We have just been provided with some material here by Mr. VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00038Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 ples we have given you are pretty explicit, and I am not sure how they got through the copyright system. But most of them are not . And so maybe some kind of program at the Li-if they are using the Visa logo, you ask them to stop using it. Is . You expel them from your system. . We have no ability to get directly to them through our banks, but we try to track them down using our search firm to find the hosting service that provides them the ability to our logo from the site, they are not authorized to do it. . Well, you can order them to take it—can they VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00039Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 you enforce that? How do you make them stop doing it? You have to find them. And the way you find them is to go to the web ago. We think that that level of misuse of the payment system has get blocked out from using the credit cards? Where are these ful testimony. We appreciate it. . I am just going to ask anyone of the panel. here is to stay ahead of the curve and to follow them where they VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00040Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 go. One of the things that we are learning now from law enforce-today are organized criminals, many of them in Eastern Europe. . From the financial—— over the world with international law enforcement as well as U.S. to join the Financial Coalition Against Child Pornography. We hope you will continue in this effort and work. We have got a long way This has been, I think, a good hearing this morning. We have eradicate child pornography. We have learned of the positive VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00041Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 We have also had a chance to get a glimpse of the ongoing efforts of the criminals who seek to profit from this horrible crime. Clear-I noted in my opening statement that our commitment and your We have a vote on the floor. The Committee is adjourned. Thank We have a vote on the floor. The Committee is adjourned. Thank [Prepared statements and responses to written questions sup-plied for the record follow:] VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00042Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 39 VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00043Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 40 VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00044Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 41 VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00045Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 42 VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00046Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 43 VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00047Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 44 VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00048Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 45 VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00049Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 46 VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 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050304PO 00000Frm 00106Fmt 6633Sfmt 6633E:\HR\OC\A304.XXXA304 We are very encouraged by the unprecedented level of co-realistic that we are attacking a global problem that has flourished Most immediately, the worldwide scope of this problem neces-We are in discussions with banking associations and individual our core system here, but we need the participation of companies clearinghouse running to optimum effectiveness. The early re-commercial child pornography cannot be understated. We are en-universal. We are eager to work with the private sector to explore VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00107Fmt 6602Sfmt 6602E:\HR\OC\A304.XXXA304 We are mindful that as we put pressure on commercial child por-move to alternative payment schemes. We are just starting to un-identify and get cooperation from alternative billing companies that From a legislative/regulatory perspective, the Financial Coalition fenders from acquiring financial payment capabilities. We would be remiss if we did not share with the Committee con-42 U.S.C. §13032, not all ESP’s are reporting and those that do re-port are not sending uniform types of information, rendering some a clear mandate and that it exposes them to possible criminal pros-than mandatory, so there is no enforcement mechanism for those VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00108Fmt 6602Sfmt 6602E:\HR\OC\A304.XXXA304 hibited from doing so. from detection of child pornography to conviction of the distributor. that they can still use the financial payment system to purchase that the payment system is an option of any kind for child pornog-such as the FCACP exist? We will explore launching a media rela-tacking this problem not only by detection and action, but also by chants to get into the system in the first place. As a starting point, bers benefit from the best ideas currently being implemented by in-an appropriate platform from which to address how barriers to We are committed to working with banking leaders in the United VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00109Fmt 6602Sfmt 6602E:\HR\OC\A304.XXXA304 (‘‘NCMEC’’) to prevent child pornographers from using our system. ting the child pornographer’s transactions into our system. We are a seemingly legitimate business to gain access to our system and ensure that merchants with whom they contract to accept acquirers perform due diligence on a merchant before authorizing tem through an acquirer, we work closely with the acquirer to ad-participate in our system are extremely cooperative in addressing cards as payment. We are not content, however, simply to drive these criminals from our system and are working with NCMEC VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00110Fmt 6602Sfmt 6602E:\HR\OC\A304.XXXA304 raphers driven from our system do not find safe haven in other have detected a clear trend away from accepting traditional pay-VerDate Nov 24 2008 00:52 Nov 24, 2009Jkt 050304PO 00000Frm 00111Fmt 6602Sfmt 6602E:\HR\OC\A304.XXXA304 GOVERNMENT PRINTING OFFICEInternet: bookstore.gpo.govPhone: toll free (866) 512–1800; DC area (202) 512–1800Fax: (202) 512–2104Mail: Stop IDCC, Washington, DC 20402–0001 2009 S. HRG. 109–1082 COMBATING CHILD PORNOGRAPHY BY ELIMINATING PORNOGRAPHERS’ ACCESS TO THE FINANCIAL PAYMENT SYSTEM BEFORETHEBANKING,HOUSING,ANDURBANAFFAIRS TUESDAY, SEPTEMBER 19, 2006 Available at: http://www.access.gpo.gov/congress/senate/senate05sh.html VerDate Nov 24 2008 01:34 Nov 24, 2009Jkt 050304PO 00000Frm 00001Fmt 5011Sfmt 5011E:\HR\OC\A304.XXXA304