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IV. Agency Budget Summaries

FINANCIAL CRIMES ENFORCEMENT NETWORK


  1. RESOURCE SUMMARY

  2. METHODOLOGY

    • The Financial Crimes Enforcement Network (FinCEN) drug control budget proceeds from an estimate of support it will provide to HIDTA, Interagency Crime and Drug Enforcement task forces, OCDETF, and in support of narcotics-related investigations by law enforcement agencies at several echelons. The current specification of FinCEN's mission supports an equal split of resources between drug and non-drug investigative activities.

  3. PROGRAM SUMMARY

    • The mission of the Financial Crimes Enforcement Network is to support and strengthen domestic and international anti-money laundering efforts, and to foster inter-agency and global cooperation to that end, through information collection, analysis, and sharing, technological assistance, and innovative and cost-effective implementation of Treasury authorities. FinCEN's drug control activities support Goal 5 of the National Drug Control Strategy, "Break foreign and domestic drug sources of supply."

    • FinCEN is the United States' central point for broad-based financial intelligence, analysis, and information sharing. This service is provided to federal, state, local and international law enforcement agencies to assist them in building investigations, preparing prosecutions, and developing and implementing strategies to combat narcotics-related money laundering.

    • 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 measures to prevent and detect money laundering by major trafficking organizations.

    • FinCEN administers the Bank Secrecy Act, which is a key component of Treasury's efforts to combat money laundering.

    • FinCEN's goal is to provide law enforcement support through information analysis and the creation of new information resources for the prevention, detection, and prosecution of money laundering. Primary strategies include using state-of-the-art technology for information sharing to law enforcement; building new law enforcement resources through the use of the Bank Secrecy Act (BSA) and analysis of money laundering trends and patterns; and strengthening anti-money laundering efforts internationally.

    • To use state-of-the-art technology for information sharing and analysis: FinCEN uses technology to exploit information collected in its databases to provide quality and timely information to law enforcement investigations of financial criminals.

    • To build new law enforcement resources through effective use of the Bank Secrecy Act: FinCEN monitors and adjusts BSA rules to meet the evolving needs for information by law enforcement and regulatory agencies. FinCEN is emphasizing the reporting of suspicious activity by the entire financial industry and is studying emerging technologies to determine the vulnerability of those systems to money laundering and reviews mechanisms for anti-money laundering safeguards to minimize abuse.

    • To build new law enforcement resources through focused and sophisticated analysis of the elements of major cases and of trends and patterns of money laundering and related financial crimes: FinCEN brings together various law enforcement, regulatory, and banking components in order to focus on and discuss problematic topics of mutual concern. These partnership meetings are an effective and efficient way to address emerging and existing trends and methods of money laundering and financial crime. FinCEN issues advisories and trend reports to inform its partners and highlight current financial crime schemes and trends.

    • To strengthen anti-money laundering efforts internationally: Efforts to reduce money laundering in the U.S. 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 strengthening its partnership with the international community. Through linkages with multinational arrangements, FinCEN shares ideas and information generated throughout the law enforcement community. FinCEN is encouraging the establishment of task forces by language, or common interest, as en effective way to encourage and assist member countries to bring their financial policies into conformity with international money laundering standards.

  4. BUDGET SUMMARY

    1998 Program

    Goal 5: Break foreign and domestic drug sources of supply.

    • FinCEN's 1998 program includes $11.9 million and 91 FTE which supports domestic and international anti-narcotics related money laundering efforts by providing support through collection, analysis, and sharing of information, and providing technological assistance. This includes $0.5 million from the Violent Crime Trust Fund to support international efforts against money laundering and establish a secure web for sharing information.

    1999 Request

    Goal 5: Break foreign and domestic drug sources of supply.

    • The total drug control request for goal 5 activities for FY 1999 is $12.5 million, which includes $0.5 million from the Violent Crime Trust Fund. FinCEN's request represents a net increase of $0.6 million over FY 1998. The Violent Crime Trust Fund portion of this program includes enhancements:

      • To exploit SAR information through the use of high technology and improve the quality and quantity of intelligence products produced so as to further FinCEN's customers' knowledge base both domestically and abroad.

      • For an innovative outreach to support law enforcement drug related financial investigations.

      • For a proposal to measure the magnitude of money laundering.

  5. PROGRAM ACCOMPLISHMENTS

    • In FY 1997, FinCEN continued to encourage partnership efforts among law enforcement, regulatory, and financial communities to combat narcotics-related money laundering. The information derived from FinCEN assisted in the seizure of assets from major drug cartel associates.

    • In FY 1997, disseminated information on narcotics-related money laundering trends and patterns in publications, at conferences, and at other outreach activities. Completed an assessment of strategies implemented to counter drug trafficker exploitation of commercial trade.

    • In FY 1997, broadened relationships with the regulatory community and the financial service provider industries to hinder criminals actions to launder drug profits. Continued and built on the improved compliance climate, by championing burden reduction initiatives wherever those were possible. Proposed regulations to subject card clubs to the same reporting and record keeping requirements and anti-money laundering safeguards of the BSA as those in place for state-licensed and tribal casinos. Also, proposed regulations to place money-service businesses under BSA regulation.

    • In FY 1997, worked closely with the Department of State and the Department of the Treasury's Assistance Secretary for International Affairs and various bureaus on several international anti-money laundering initiatives, both bilateral and multilateral. FinCEN continued to encourage and support the establishment of Financial Intelligence Units which are increasingly recognized as the key third component of national anti-money laundering programs -- along with the criminalization of money laundering and implementation of anti-money laundering statutes and regulations.