As of June 1992, 22 States had enacted legislation aimed at preventing money laundering, but law enforcement officials questioned their effectiveness in prosecuting offenses. Six States have agreements with the Treasury Department to receive relevant Bank Secrecy Act (BSA) data on magnetic media, enabling them to analyze the data at their own computer facilities. Another four States obtain BSA data through parties who send copies of reports filed with the Treasury Department to the State. Federal funding for State initiatives to combat money laundering is administered through formula and discretionary grants awarded by the Department of Justice, Bureau of Justice Assistance. During 1990 and 1991, funding for discretionary grants dealing with money laundering issues totaled $7.65 million for 14 projects. GAO recommended that States have access, on the same basis as Federal law enforcement agencies, to all data reported on IRS Form 8300. 6 tables, 2 figures, and 4 appendixes