Keep the good money in: inconsistent application of US anti-money-laundering laws is eroding South Florida's international banking industry.(CHIEF EXECUTIVE OPINION)

Many times, I have jokingly told people that the best thing about Miami is that it is so close to the United States. To many people, South Florida is the capital or regional hub of Latin America. Our Latin American neighbors come here to shop, relax and do business. They seek medical treatment and often maintain a residence here for their frequent visits.

South Florida is the natural place for Latin Americans to come to: We are close in distance and in time; Miami International Airport is the perfect hub for travel between Latin America and the rest of the world; and we speak their language.

Real estate markets, shopping malls, colleges, hospitals and banks have much benefited from the influx of Latin American visitors. For banks, especially, the strength of the US economy and the solidity of its investor protection laws have made it very attractive for foreigners to maintain part of their savings in a US-based financial institution. Economic and political stability, as well as personal safety, are often additional reasons Latin Americans prefer to keep part of their financial eggs in a basket outside of their home country. Serving this market over the years, Miami has become a sophisticated financial center, with banks, broker-dealers, experienced attorneys and other consultants.

Recent regulatory developments, however, have put the economic benefits of the regional status of South Florida at stake. Although South Florida is often the most logical option for these investors, it is certainly not the only option, and many of them are choosing to take their business elsewhere.

The terror of Sept. 11, 2001 has made some within this country suspicious of foreigners, and new regulations have given some of our visitors the feeling that they are no longer welcome here. Because of provisions of the USA Patriot Act and related legislation, entry visas to the US are more difficult to obtain and airport formalities are not always pleasant. Strict questioning of visitors who want to open a bank account in the US feeds the perception that their money is more welcome in other nations.

The US does not sufficiently recognize that the offshore savings sector is part of a global economy and that it should promote rather than discourage this industry, which creates employment and attracts foreign investment in the US.

All of us strongly support aggressive measures to protect our homeland, but the new regulations do far more than repel the bad people and the bad money. They also repel the good people and the good money.