The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) recently held its ninth annual Law Enforcement Awards Program, recognising and applauding the achievements of various agencies that have effectively employed Bank Secrecy Act (BSA) data in their pursuit and prosecution of criminal investigations.
FinCEN Director Andrea Gacki, speaking at the ceremony, underscored the collaborative nature of these accomplishments. She emphasised that while the awards celebrate the achievements of law enforcement agencies, it is crucial to acknowledge the pivotal role played by financial institutions in identifying and reporting suspicious activities. Gacki stressed that safeguarding the financial system and enhancing national security is a collective effort.
Successful investigations aided by BSA data
The ceremony, attended by financial industry representatives and law enforcement officials, served as a platform to highlight the significant impact of BSA data on successful investigations. The FinCEN highlights noteworthy cases that received awards across various crime areas, and the agencies involved.
Fraud
Agencies: Internal Revenue Service–Criminal Investigation, Federal Bureau of Investigation, Small Business Administration Office of Inspector General
Achievement: Uncovering a pandemic relief fraud ring involving over 150 loans totalling approximately $21 million, prosecuted by the United States Attorney’s Office for the Central District of California and the Department of Justice’s Fraud Section.
Drug trafficking organisation activity
Agency: Federal Bureau of Investigation
Achievement: Forensic accountants used BSA data and financial records to trace illicit proceeds across three continents, leading to the prosecution by the United States Attorney’s Offices for the Southern District of New York and the Southern District of Florida.
Transnational criminal organisation activity
Agency: Drug Enforcement Administration
Achievement: Identifying a money laundering, poly-drug trafficking, and human smuggling empire by leveraging FinCEN’s programs and resources. Seizure of approximately 4.5 metric tons of cocaine hydrochloride in South America bound for the United States. Jointly prosecuted by the U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice’s Money Laundering and Asset Recovery Section.
Proliferation financing
Agencies: Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Homeland Security Investigations
Achievement: Using information received from BSA filings to charge nine defendants with conspiracy to commit money laundering and conspiracy to commit mail and wire fraud, resulting in the recovery of approximately $3 million worth of electronics and communications. Prosecuted by the United States Attorney’s Office for the District of Maryland.
Cybercrime
Agencies: U.S. Secret Service, U.S. Postal Inspection Service
Achievement: Successfully prosecuting individuals involved in a business email compromise scheme, with BSA data crucial in identifying accounts and co-conspirators. Prosecuted by the United States Attorney’s Office for the Eastern District of Virginia.
Corruption
Agencies: Internal Revenue Service–Criminal Investigation, Global Illicit Financial Team, Homeland Security Investigations
Achievement: Collaboratively investigating third-party money laundering and merging efforts to identify a money remitter who controlled several U.S. and foreign companies. Prosecuted by the Department of Justice’s Fraud Section and the United States Attorney’s Office for the Southern District of Florida handling the asset forfeiture case.
Human trafficking/smuggling
Agencies: Department of Justice’s Civil Rights Division, Criminal Section
Achievement: BSA reporting provided critical leads in a multi-year investigation leading to the prosecution of individuals involved in human trafficking and human smuggling. Prosecuted by the United States Attorney’s Office, Middle District of Florida, and the Department of Justice’s Civil Rights Division.
Key takeaways
These cases serve as powerful examples of the instrumental role that BSA data plays in facilitating the detection and prosecution of various forms of criminal activities in the U.S., showcasing the successful collaboration between financial institutions and law enforcement agencies in upholding the integrity of the financial system and ensuring national security.
