ABSTRACT

Moving Illegal Proceeds: Opportunities Exist for Strengthening the Federal Government's Efforts to Stem Cross-Border Currency Smuggling, Statement of Richard M. Stana, Director, Homeland and Security Issues, Testimony Before the Senate Caucus on International Narcotics Control   [open pdf - 233KB]

From the statement of Richard M. Stana: "I am pleased to be here today to discuss federal efforts to stem currency smuggling across our nation's borders. Mexican drug-trafficking organizations, terrorist organizations, and other groups with malevolent intent finance their operations by moving funds into or out of the United States. For example, a common technique used for taking proceeds from drug sales in the United States to Mexico is a method known as bulk cash smuggling. The National Drug Intelligence Center (NDIC) has stated that proceeds from drug trafficking generated in this country are smuggled across the southwest border and it estimates that the proceeds total from $18 billion to $39 billion a year. NDIC also estimates that Canadian drug-trafficking organizations smuggle significant amounts of cash across the northern border from proceeds of drugs sold in the United States [...]. My testimony today is based on our October 2010 report on cross-border currency smuggling and updated information on bulk cash seizures and the status of one our recommendations.2 Like the report, it will cover the following three issues: (1) the actions CBP [Customs and Border Protection] has taken to stem the flow of bulk cash leaving the country through land ports of entry and the challenges that remain, (2) the regulatory gaps that exist for cross-border reporting and other anti-money laundering requirements involving the use of stored value, and (3) the extent to which FinCEN [Financial Crimes Enforcement Network] has taken action to address these regulatory gaps."

Report Number:
GAO-11-407T
Publisher:
Date:
2011-03-09
Copyright:
Public Domain
Retrieved From:
Government Accountability Office: http://www.gao.gov
Format:
pdf
Media Type:
application/pdf
URL:
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