Money Laundering:

State Efforts To Fight It Are Increasing But More Federal Help Is Needed

GGD-93-1: Published: Oct 15, 1992. Publicly Released: Nov 12, 1992.

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Pursuant to a congressional request, GAO discussed what states are doing to combat money laundering and what assistance the federal government is providing to the states.

GAO found that: (1) few states use legislation and financial transaction reports as federal law enforcement agencies do; (2) six states have agreements with the Treasury that permit them to receive Bank Secrecy Act (BSA) data relevant to their states on magnetic media, enabling them to process the data at their own computer facilities; (3) four states use computers to process and analyze the data in the same manner the federal government does; (4) four other states obtain BSA data by requesting that Treasury provide information on individual suspects on a case-by-case basis; (5) federal funding for state initiatives to attack money laundering is provided through formula and discretionary grants awarded and administered by the Justice Department's Bureau of Justice Assistance; and (6) the Financial Crimes Enforcement Network is providing strategic intelligence reports and training seminars to a growing number of states.

Matters for Congressional Consideration

  1. Status: Closed - Not Implemented

    Comments: H.R. 22 was vetoed and a subsequent amendment has not been opened.

    Matter: Congress should make permanent the authority of the Secretary of the Treasury to disclose information from returns filed under Section 6050I of the Internal Revenue Code (IRC) - Internal Revenue Service (IRS) Form 8300s.

  2. Status: Closed - Not Implemented

    Comments: H.R. 22 was vetoed and a subsequent amendment was not opened.

    Matter: Congress should amend IRC section 6103 to allow the Secretary of the Treasury the authority to disclose these returns to state law enforcement agencies.

Recommendation for Executive Action

  1. Status: Closed - Not Implemented

    Comments: H.R. 22 was vetoed and a subsequent amendment was not opened.

    Recommendation: Should the states be given access to the information on IRS Form 8300, the Department of the Treasury should make it available to states on magnetic media ready for computer processing on the same basis as Bank Secrecy Act data is currently available.

    Agency Affected: Department of the Treasury

 

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