The international standard for combating money-laundering and the financing of terrorism has been established by the Financial Action Task Force (FATF). FinCEN carries out its mission by receiving and maintaining data on financial transactions; analyzing and disseminating such data for police purposes; and establishing global cooperation with counterpart organizations in other countries and with international organizations. To combat money laundering and the financing of terrorism. Because they play such an important role in the U.S.
UU. In the financial system, banks are often at the forefront of anti-money laundering efforts by establishing effective BSA programs. Effective BSA programs play a critical role in the fight against criminal activity. For example, effective BSA programs help financial institutions detect initiatives to launder illicit revenues, which, in turn, can prevent those funds from entering the U.S.
Accurate and timely reporting of suspicious activity can be a critical source of information for police investigations. In addition, the BSA's domestic collection of information improves the United States' ability to respond to similar requests from foreign law enforcement agencies for investigative assistance, increasing our ability to combat financial crimes on the global stage. Domestic and international law enforcement partners must work together to obtain evidence and track, freeze and seize assets wherever they are. FinCEN exercises regulatory functions primarily under the Monetary and Financial Transaction Information Act of 1970, as amended by Title III of the United States Patriot Act of 2001 and other laws, whose legislative framework is commonly referred to as the Bank Secrecy Act (BSA).
The director of FinCEN is appointed by the Secretary of the Treasury and reports to the Undersecretary of Terrorism and Financial Intelligence of the Treasury. He currently holds the presidency of the FATF and is one of the 34 current members of the FATF who represent the largest economies in the world, as well as associate members and regional organizations. Introducing illegally obtained funds into the flow of legitimate trade and finance allows criminals to profit from their illegal activities, contaminates the international financial system and erodes public trust in the integrity of the system. The financial system erodes citizens' trust in government and private institutions alike, undermines trust in the fairness of free and open markets, and encourages disregard for the rule of law.
Law enforcement agencies successfully use similar techniques, including searching for information collected by FinCEN in the financial sector, to investigate and hold accountable a wide range of criminals, including fraudsters, tax evaders and narcotics traffickers. The mission of FinCEN is to safeguard the financial system from illicit use and to combat money laundering and promote national security through the collection, analysis and dissemination of financial information and the strategic use of financial authorities. To effectively disrupt the growing threat posed by money laundering, the FBI employs a variety of tools and collaborates with its domestic and international law enforcement partners. While ISIS raised significant amounts of revenue through the illicit sale of oil and extortion, many ISIS supporters and agents send funds in small amounts of dollars, including to recruit and support foreign terrorist fighters and to support external operations.
Delegation to the Financial Action Task Force (FATF), the intergovernmental body responsible for developing and promoting policies to protect the global financial system against money laundering and other threats. The FELEG MLWG is comprised of members of the Australian Federal Police, the Australian Criminal Intelligence Commission, the New Zealand Police, the Royal Canadian Mounted Police, the United Kingdom's National Crime Agency, the DEA, the IRS, the HSI and the FBI. Information from SARs, CTRs, CMIRs and other BSA reports can also help law enforcement agencies see the bigger picture of a criminal network by tracing money back to those who generate the illicit profits and those who redistribute them. In complex TBML schemes, criminals move goods, falsify their value, and misrepresent trade-related financial transactions, often with the help of complicit merchants, in an effort to simultaneously disguise the origin of illicit revenues and integrate them into the market.
In addition to leading anti-money laundering initiatives, the INL supports the Office of Economic and Business Affairs (EB) and the Office of Counter-Terrorism (CT) of the Department of State in their work related to the fight against the financing of terrorism. .
