Money Laundering: A Framework for Understanding U.S. Efforts Overseas

• NCJ Number: 164112
• Author(s): J P Hutton; S A Brothwell; R H Mendelsohn; D M Rogers; G R Hamilton; K A Wong; J R Pena; K M Monahan; Brostrom
• Date Published: 1996
• Length: 65 pages
• Corporate Author: US Government Accountability Office
• Sale Source: Azimuth Inc.; NCJRS Photocopy Services
• Publication Type: Issue Overview
• Language: English
• Country: United States of America
• Note: Report to the Ranking Minority Member, Committee on Banking and Financial Services, House of Representatives

Annotation

This U.S. General Accounting Office (GAO) report provides a framework for understanding overseas efforts of the United States to combat international money laundering and defines money laundering as the act of converting money gained from illegal activities, such as drug smuggling, into money that appears legitimate and in which the source cannot be traced to illegal activities.

Abstract

The GAO report indicates that money laundering is a global problem and that the United States is focusing increased attention on foreign aspects of its efforts to combat money laundering, particularly as U.S. efforts make it more difficult for individuals to launder money domestically. The GAO report also points out that U.S. financial institutions have bank branches located throughout the world and that U.S. regulators take different approaches to assessing money laundering controls at these branches. In some countries, such as England, Germany, and Italy, U.S. regulators have been able to conduct onsite examinations of U.S. bank branches in order to assess their efforts to control money laundering. Numerous U.S. law enforcement agencies, including the Drug Enforcement Administration, the Federal Bureau of Investigation, the Customs Service, and the Secret Service, are responsible for investigating domestic and international money laundering. Further, the United States works with other countries through multilateral and bilateral treaties and arrangements to establish global money laundering policies, enhance cooperation, and facilitate the exchange of information on money laundering investigations. Approaches of the United States and selected European countries to combating money laundering through the regulation of financial institutions are described, along with U.S. bank regulator oversight of money laundering controls at overseas branches of U.S. banks, U.S. law enforcement agency efforts to control money laundering activities overseas, and U.S. participation in international arrangements to combat money laundering abroad. Appendixes contain detailed information on the scope, findings, and recommendations of the GAO report. Footnotes and tables