Note: Direct funding is 50% drug-related, however, Crime Control Act funding adjusts the overall percentage to the levels shown.

II.METHODOLOGY

• FinCEN's drug control budget is based on the support it will continue to provide to HIDTA, Interagency Crime and Drug Enforcement task forces, and in support of narcotics-related investigations by law enforcement agencies. The current evaluation of FinCEN's mission supports an equal split of resources between drug and non-drug activities.

III. PROGRAM SUMMARY

• FinCEN sets, oversees, and implements policies to prevent and detect money laundering. It administers the Bank Secrecy Act (BSA) and is a central point for broad-based financial intelligence, analysis, and information sharing. This service is provided to Federal, state and local international law enforcement agencies to assist them in building investigations, preparing prosecutions, and developing and implementing strategies to combat narcotics-related money laundering.



• As its name states, FinCEN is a network -- a link between law enforcement, financial and regulatory communities on the international, Federal, state and local level. Because the changing financial world creates vast opportunities for criminals to hide illicit proceeds, FinCEN works with its domestic and international partners to maximize the information sharing network and find new ways to create cost-effective and efficient measures to prevent and detect financial crime. FinCEN's drug control activities support Goal 5 of the National Drug Control Strategy, break foreign and domestic drug sources of supply.



• FinCEN administers the Bank Secrecy Act, which is a key component of Treasury's efforts to combat money laundering. In addition, FinCEN plays an integral part in the Administration's plan to find new ways to prevent and detect money laundering by major trafficking organizations throughout the world.



• FinCEN works with domestic and international partners to maximize the information sharing network and to find new ways to create cost-effective and efficient measures to prevent and detect money laundering.



• FinCEN has identified three strategic goals for carrying out counter-money laundering strategy.



• Working partnership with the law enforcement, regulatory, and financial communities to combat money laundering: To challenge the financial criminal on all fronts, FinCEN recognizes that it must bring together government agencies and the private sector to address the massive problem of money laundering. FinCEN's approach is to build on common areas of interest when developing actions to significantly reduce its customers burdens without compromising the needs of law enforcement. Through continuing outreach to the law enforcement community nationwide, and by way of meetings, conferences, speaking engagements, publications, and other information-sharing forums, FinCEN builds partnerships while educating and informing its customers.



• Focus global attention and increase international awareness of the impact of money laundering: Efforts to halt money laundering in U.S. banks has forced drug traffickers to turn to other countries to cover their illicit profits. FinCEN assists its Federal law enforcement counterparts in following the trail of the multinational money launderer by increasing its partnership with the international community. Through linkages with multinational arrangements, FinCEN shares ideas and information generated throughout the law enforcement community. FinCEN is increasing its efforts to identify nations that tolerate money laundering and undertaking steps to encourage and assist such countries in bringing their financial policies into conformity with international money laundering standards.



• Understand the role of state-of-the-art technologies in counter-money laundering efforts: As criminals become more adept at using technology to further their schemes, so must law enforcement use technology to defeat these schemes and strive to anticipate new criminal trends and patterns. FinCEN studies emerging technologies to determine the vulnerability of those systems to money laundering and reviews mechanisms for counter-money laundering safeguards to minimize abuse. Using its regulatory authority, FinCEN constructs systems to detect and report violations to government agencies. FinCEN's role is to ensure compliance with regulations.

IV. BUDGET SUMMARY

1997 Base Program

• The 1997 base program includes $11.7 million for counter-money laundering efforts which support Goal 5 of the National Drug Control Strategy. This includes $0.5 million from Crime Bill funds to support studies of emerging cyberpayment technologies.

• The FY 1998 total drug control budget request is $13 million. This includes Crime Bill funds to support international counter-money laundering efforts ($1 million), and to initiate a pilot program that will allow communication among law enforcement agencies, and enable the disbursement of information quickly and effectively ($0.5 million).

V. PROGRAM STATISTICS

	1996 Actual	1997 Estimate	1998 Projected
Facilitate coordination with other agencies:
a. # of demonstrations/presentations provided	112	130	150
b. # of FinCEN case lab intelligence products	9	13	20
Provide quality and timely information to law enforcement
a. # of queries using FinCEN's Platforms	50,000	55,000	60,000
b. # of efforts to move users to platform concept	120	135	150
Efforts to bring other governments into compliance with international anti-money laundering standards
a. # of countries provided technical assistance	17	20	25
b. # of efforts to foster creation of FlUs	20	30	40
c. # of assessments that provide an analysis of the money laundering situations in a country or region	19	25	30
Identify the vulnerabilities of rapidly advancing technologies and how they can be exploited by criminals
a. # of efforts to determine vulnerabilities of new technologies	20	50	60
b. Technical assistance conducted related to emerging technologies	60	65	68

VI. PROGRAM ACCOMPLISHMENTS

• In FY 1996, enhanced partnership among the law enforcement, regulatory and financial communities to combat narcotics-related money laundering. Exploited data obtained from the new Suspicious Activity Reporting System for the opportunities it provided for improved analysis and financial intelligence.



• In FY 1996, increased dissemination of information on narcotics-related money laundering trends and patterns in money laundering and presented results in publications, at conferences, and at other outreach activities.



• In FY 1996, broaden relationships with the regulatory community and the financial service provider industries to hinder criminals actions to launder drug profits. Bank Secrecy Act regulations were expanded to cover portions of the non-bank financial institution sector of the U.S. economy.



• Expanded in FY 1996, the number of Financial Intelligence Units and developed systems for improving coordination and intelligence sharing among them. This allows information on drug- related money laundering activities to be quickly and effectively shared to hinder its expansion to other geographic areas.



• In FY 1996, worked bilaterally with nations to establish laws and organizational mechanisms to prevent and deter narcotics-related money laundering. Countries such as Russia, China and South Africa were high priority targets.