Bank Secrecy Act: Treasury Can Improve Implementation of the Act
GGD-86-95
Published: Jun 11, 1986. Publicly Released: Jun 11, 1986.
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Highlights
In response to a congressional request, GAO: (1) reviewed the Department of the Treasury's management of the Bank Secrecy Act of 1970; (2) studied how law enforcement personnel use the act; and (3) examined the collection, analysis, and dissemination of data compiled as a result of the act.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of the Treasury | The Secretary of the Treasury, through the Assistant Secretary for Enforcement, should establish management controls aimed at providing more information to Treasury headquarters about the activities of the agencies and bureaus to which it has delegated authority to implement the Bank Secrecy Act of 1970. Such controls would help its headquarters to improve the implementation of the act and would provide assurance to its headquarters that the primary purpose of the act, aiding law enforcement officials in the detection, investigation, and prosecution of criminal activities, is being met. |
Closed – Not Implemented
Events since this report have brought the act and related areas to the forefront of public debate. In addition, the Anti-Drug Abuse Act of 1988 directed negotiations with foreign governments to enhance cooperative anti-money laundering activities and provided for sanctions against governments failing to cooperate. GAO is currently reviewing the status of international money laundering activities.
|
| Department of the Treasury | The Secretary of the Treasury, to improve implementation of the act, should establish formal reporting procedures for agencies and bureaus with act-related duties, which will ensure that Treasury headquarters regularly receives significant and comparable information about compliance and enforcement efforts. |
Closed – Not Implemented
Events since this report have brought the act and related areas to the forefront of public debate. In addition, the Anti-Drug Abuse Act of 1988 directed negotiations with foreign governments to enhance cooperative anti-money laundering activities and provided for sanctions against governments failing to cooperate. GAO is currently reviewing the status of international money laundering activities.
|
| Department of the Treasury | The Secretary of the Treasury, to improve implementation of the act, should develop procedures for referring financial institutions found in violation of the act to Treasury for consideration for a civil review leading to possible civil penalties. |
Closed – Not Implemented
Events since this report have brought the act and related areas to the forefront of public debate. In addition, the Anti-Drug Abuse Act of 1988 directed negotiations with foreign governments to enhance cooperative anti-money laundering activities and provided for sanctions against governments failing to cooperate. GAO is currently reviewing the status of international money laundering activities.
|
| Department of the Treasury | The Secretary of the Treasury, to improve implementation of the act, should obtain information from law enforcement agencies, which would identify cases when the act or its data is used in criminal investigations and prosecutions. |
Closed – Not Implemented
Events since this report have brought the act and related areas to the forefront of public debate. In addition, the Anti-Drug Abuse Act 1988 directed negotiations with foreign governments to enhance cooperative anti-money laundering activities and provided for sanctions against governments failing to cooperate. GAO is currently reviewing the status of international money laundering activities.
|
| Department of the Treasury | The Secretary of the Treasury, to improve implementation of the act, should require Customs to establish a system for planning its analytical activities and modifying these plans based on feedback from law enforcement officials to ensure that Customs' analyses are meeting the needs of the law enforcement community. |
Closed – Not Implemented
Events since this report have brought the act and related areas to the forefront of public debate. In addition, the Anti-Drug Abuse Act of 1988 directed negotiations with foreign governments to enhance cooperative anti-money laundering activities and provided for sanctions against governments failing to cooperate. GAO is currently reviewing the status of international money laundering activities.
|
| Department of the Treasury | The Secretary of the Treasury, to improve implementation of the act, should expedite the approval and implementation of the revised dissemination guidelines submitted by Customs. |
Closed – Implemented
Treasury approved those guidelines that Customs submitted. Customs provided copies of the guidelines to appropriate offices. Treasury will monitor the application of the guidelines and provide guidance to Customs on modifications in dissemination policy that may be appropriate in the future.
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Bank depositsBanking lawFinancial institutionsForeign governmentsInteragency relationsLaw enforcement agenciesOrganized crimeRegulatory agenciesSecuritiesCriminal investigations