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Agency Budget Summary
Department of the Treasury
Interagency Crime and Drug Enforcement
I. Resource Summary
II. Methodology
- All of the funds in the Interagency Crime Drug Enforcement (ICDE) are scored as drug-related.
III. Program Summary
- Originally established in 1982, the primary goal of this program is to target, investigate and prosecute individuals who organize, direct, finance, or otherwise engage in high-level illegal drug trafficking enterprises, including large-scale money laundering activities.
- Treasury's ICDE budget represents the portion of ICDE funds previously (prior to FY 1998) appropriated to DOJ for Treasury law enforcement bureaus participating in the program. They are now funded through the Treasury-Postal appropriation. From FY 1988 until FY 1997, DOJ annually prepared a consolidated request for ICDE on behalf of all participating agencies. The Bureau of Alcohol, Tobacco, and Firearms, the U.S. Customs Service and the Internal Revenue Service are the Treasury bureaus that are among the elevenagencies that participated in this program. Prior to FY 1998, DOJ reimbursed Treasury bureaus for salaries and expenses expended on cases referred to and accepted by the task forces.
- Participating agencies coordinate their activities and cooperate within a national regional task force structure. Consisting of a representative from each participating agency, regional task forces foster a spirit of cooperation among federal, state and local law enforcement agencies and bring some of the best specialized investigative prosecutorial talent of each agency to bear on cases which have qualified for referral under special criteria.
- Treasury Enforcement is heavily involved in the ICDE task forces and the High Intensity Drug Trafficking Areas (HIDTAs) under the DOJ and ONDCP's control, respectively. There has been a recent explosion in ICDE drug cases. In FY 1998, there were 1,355 ICDE cases. That is an increase of 87 percent over the FY 1997 case load of 723.
- Activities performed under this appropriation are core governmental functions which must continue on a day-to-day basis. Funding contributes directly to Goals 2, 4 and 5 of the Strategy.
- Consolidated Departmental Oversight: Appropriating directly to the Department of the Treasury enhances Treasury Enforcement's ability to exercise consolidated Departmental oversight in the management and allocation of resources concomitantly with streamlining administrative coordination with non-Treasury participating Agencies. This benefit is achieved while maintaining the integrity of existing guidelines which allow individual task forces to be tailored to meet the special needs of regional ICDE investigative and prosecutorial personnel.
- Interagency Cooperation to Solve Crimes: The overall goal to identify, investigate and prosecute members of high-level drug trafficking and related enterprises will be maintained through interagency coordination and thereby generate more and better cases against drug trafficking and related organizations.
- When Treasury bureaus refer cases to the task forces, Treasury benefits from the highly specialized talents of each agency and, at the same time, receives reimbursement for resources expended. Likewise, other agencies benefit from Treasury's expertise in solving their cases. The types of cases referred to ICDE are extremely complex and are characterized by conspiracies of large well-organized criminal enterprises. These cases often extend over a wide geographic area.
IV. Budget Summary
1999 Program
- The FY 1999 base includes $37.0 million for money laundering investigations conducted by the Internal Revenue Service, Criminal Investigations Division (IRS-CID); $28.0 million for interdiction efforts conducted by the U.S. Customs Service (USCS); $10.2 million forfirearms-related violence investigations (BATF); and $0.6 million for Departmental Offices to manage and coordinate the agency's activities. There are no direct FTE funded by the ICDE accounts.
- The FY 1999 base program described above will be applied toward achieving the Strategy Goals as follows:
Goal 2: Increase the safety of America's citizens by substantially reducing drug-related crime and violence.
- The FY 1999 appropriations includes $33.1 million to support activities in ATF, IRS and the Department.
Goal 4: Shield America's air, land, and sea frontiers from the drug threat.
- The FY 1999 appropriation includes $28.0 million for interdiction activities conducted by the U.S. Customs Service.
Goal 5: Break foreign and domestic drug sources of supply.
- The FY 1999 appropriation includes $14.8 million to support activities in the IRS.
2000 Request
- The FY 2000 request is $75.9 million, the same level as the FY 1999 enacted level. No new initiatives are proposed for FY 2000.
V. Program Accomplishments
- There were 1,355 ICDE cases in FY 1998, an increase of 87 percent over the FY 1997 case load of 723. FY 1998 was the most successful year to date for the program in terms of investigations initiated. Since the inception of the ICDE reimbursement program, ICDE funding of special agent, analyst and support personnel has been an essential component of the resources necessary for Treasury law enforcement to conduct effective long term investigations and participate in multi-agency drug task forces.
- Money Remitting Industry: This IRS lead ICDE/HIDTA investigation targeted the Remesas America Oriental (RAO), the largest Dominican-owned money remitter in New York State, with 13 offices in Manhattan, 492 local agents and more than 900 agents nationwide. RAO was allegedly engaged in the international laundering of drug proceeds. As a result of this investigation, a total of 26 arrest warrants, 16 search warrants and 15 seizure warrants for assets valued in excess of $4 million were executed. The investigation revealed a pervasive money laundering problem with respect to wire transmitters remitting funds to the Dominican Republic. As a result of the investigation, the Secretary of the Treasury issued a Geographic Targeting Order (GTO) covering metropolitan New York City, northern New Jersey and Puerto Rico.
- Operation Casablanca: An ICDE undercover investigation conducted by the Customs Service revealed an extensive network of drug money laundering within the United States and Mexico. The New York Times wrote an article stating that Casablanca was one of the "most ambitious undercover campaigns that United States law enforcement agents have waged against Latin American drug cartels." In fact, Operation Casablanca is the largest, most comprehensive drug money laundering case and resulted in the arrest of 167 individuals, the seizure of over $103 million in U.S. currency, over 4 tons of marijuana and two tons of cocaine.
- Smuggling Activities in the Northeast: An investigation was initiated by the ATF after a request for assistance was made by the Westbrook, Maine Police Department. The request was made after the seizure of three machine guns and a large quantity of narcotics from a Canadian national. The drugs consisted of cocaine, hashish, methamphetamines, LSD, and Ecstasy. The resulting investigation revealed a large criminal group specializing in firearms trafficking and drug smuggling across the U.S./Canadian Border. More than 20 people have been identified as participants, ten of whom are principals or couriers. The follow-up joint agency investigation determined that crossings were made in Vermont, New Hampshire and Maine. The conspirators have documented contacts across the United States.
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