Money Laundering:

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

GGD-93-1, Oct 15, 1992

Contact:

Norman J. Rabkin
(202) 512-3610
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

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.

Status Legend:

More Info
  • Review Pending-GAO has not yet assessed implementation status.
  • Open-Actions to satisfy the intent of the recommendation have not been taken or are being planned, or actions that partially satisfy the intent of the recommendation have been taken.
  • Closed-implemented-Actions that satisfy the intent of the recommendation have been taken.
  • Closed-not implemented-While the intent of the recommendation has not been satisfied, time or circumstances have rendered the recommendation invalid.
    • Review Pending
    • Open
    • Closed - implemented
    • Closed - not implemented

    Matters for Congressional Consideration

    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.

    Status: Closed - Not Implemented

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

    Status: Closed - Not Implemented

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

    Recommendation for Executive Action

    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

    Status: Closed - Not Implemented

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