Money Laundering: U.S. Efforts To Fight It Are Threatened By Currency Smuggling - Government Accountability Office (GAO) report

Money Laundering: U.S. Efforts To Fight It Are Threatened By Currency Smuggling - GAO Report

Date:	March 9, 1994
Report No.:	GGD-94-73
Pages:	54
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Subjects: Crimes Currency and coinage Customs administration Drug trafficking Financial disclosure Law enforcement agencies Money laundering Reporting requirements Search and seizure Smuggling Canada Colombia Customs Service Operation Backdoor Customs Service Operation Buckstop Customs Service Operation Cyclops II Customs Service Operation Million Air Customs Service Operation Outlook Customs Service Operation Pistachio Summary: U.S. banking and tax laws require the filing of reports on currency transactions exceeding $10,000. People disguising illicit income are sidestepping U.S. reporting rules by smuggling cash out of the country--apparently with relative ease. Once the funds are deposited in a foreign financial institution, they are much harder to trace and can be spent or transferred back to the United States with less risk of exposure. Treasury Department and U.S. Customs Service officials have no way to estimate the amount of currency being smuggled, although law enforcement officials GAO spoke with believe that the amount is substantial--potentially billions of dollars each year. In addition to discussing the extent of currency smuggling, this report describes the techniques used to smuggle currency and U.S. efforts to curtail it.