A former New York City police commissioner is President Clinton's choice as Treasury under secretary for enforcement, according to sources.
Raymond W. Kelly, police commissioner from 1992 to 1994, was recommended for the position by Treasury Secretary Robert Rubin and approved by the White House, said former Arizona Sen. Dennis DeConcini, a contender for the job.
The appointment would be subject to Senate confirmation. Mr. Kelly would succeed Ronald K. Noble, who after three years is leaving Treasury in February to return to a teaching position at New York University School of Law.
Some banking officials are nervous that a former police chief would be less interested in banking issues, like money laundering, than Mr. Noble has been. But a spokesman for Mr. Kelly said those worries are unfounded.
Though Mr. Kelly, president of Investigative Group International, would not comment, Paul Browne, a vice president at the security firm, spoke for him.
"He has met with Secretary Rubin, and he has had discussions with White House personnel about the job," said Mr. Browne, who also served as deputy police commissioner under Mr. Kelly. "Beyond that, we want to leave any announcements to the Treasury."
A Treasury spokesman refused to comment.
Though industry sources expressed pleasure that Mr. Noble's post would not be left vacant for long, several said they suspect Mr. Kelly's police background would draw his focus toward law enforcement agencies, like the Bureau of Alcohol, Tobacco, and Firearms. That could leave less time to devote to Treasury's Financial Crimes Enforcement Network, the agency's antilaundering arm.
During Mr. Noble's tenure, Fincen won praise from industry leaders. The agency worked with banks to fight money laundering and tried to streamline reporting requirements and other regulatory burdens.
But some are concerned that Mr. Kelly won't be as interested in money laundering or in nurturing Fincen's cooperative relationship with banks.
"If they get someone with a pure law enforcement background, something tells me that there will be less focus from that office on banking," said John J. Byrne, senior federal legislative counsel at the American Bankers Association.
The other leading candidate, Mr. DeConcini, is no stranger to the issue. The Arizona Democrat was one of the prime authors of the 1986 money laundering law. Mr. DeConcini, who represented Arizona in the Senate for 18 years, said he was interested in the position and had spoken with Mr. Noble about it. But, he said, eventually Mr. Kelly emerged as the favorite.
Mr. Browne said that Mr. Kelly is no stranger to the fight against money laundering. He said the former commissioner fought organized crime while working with the federal government on joint task forces, and through bureaus of the New York City police department.
Mr. Kelly spent 30 years in the New York City police department before retiring in early 1994. He joined Investigative Group, also in New York, later that year.
