Inside ICE: Volume 3, Issue 1

ICE Expands Investigations To Fight Money Laundering Threats

WASHINGTON, D.C.—At a January 11 ceremony to unveil the national Money Laundering Threat Assessment, Department of Homeland Security Assistant Secretary for ICE Julie Myers highlighted ICE’s innovative efforts and ongoing commitment to combat those money laundering threats identified in the report.

“ICE is proud of its substantial contributions to the government’s first national Money Laundering Threat Assessment. We look forward to working with our partners in formulating a comprehensive strategy to address these threats,” said Assistant Secretary Myers. “Over the past few years, ICE has dramatically expanded its anti-money laundering efforts to address those financial systems most vulnerable to criminal and terrorist exploitation.”

Since ICE was created in 2003, the number of arrests resulting from ICE financial investigations increased from 1,224 in Fiscal Year (FY) 2003 to 1,567 in FY 2005, while the number of indictments increased from 865 to 932. The number of convictions increased from 703 to 823. ICE financial investigations have resulted in the seizure of more than $477 million over the past three fiscal years.

The increases stem, in part, from the expansion of ICE’s financial authorities to address human smuggling and other immigration violations. Prior to the creation of ICE, there was no systemic effort to target the financial infrastructure of human smuggling and trafficking. Today, ICE is combining its financial and immigration authorities in a coordinated campaign that focuses on the underlying financial systems most vulnerable to exploitation. Below are examples of how ICE is addressing some of these threats.

Money Services Businesses—For decades, money service businesses have proven vulnerable to criminal exploitation. The “USA Patriot Act of 2001” enhanced ICE’s ability to combat the international movement of illicit funds through these businesses. Since the enactment of the “USA Patriot Act,” ICE agents have used this statute to aggressively target unlicensed money transmittal businesses and underground hawalas nationwide. These efforts have resulted in the arrest of more than 155 individuals and the seizure of more than $25 million in illicit profits related to unlicensed money transmittal businesses.

Trade-Based Money Laundering—Trade-based money laundering encompasses a number of schemes that enable dirty cash to be separated from the crime early in the money laundering process. The most common trade-based, money laundering scheme in the Western Hemisphere is the Black Market Peso Exchange (BMPE), in which Colombian drug traffickers swap illicit dollars in the United States for clean pesos in Colombia. ICE leads a multi-agency U.S. initiative to attack the BMPE. ICE has also created a Trade Transparency Unit that uses sophisticated computer systems to analyze trade data and financial information to detect anomalies in international commerce that may be indicative of money laundering.

Bulk Cash Smuggling—The threat posed by bulk cash smuggling is seen by law enforcement at home and abroad as increasingly acute, due in part to the increased anti-money laundering vigilance by U.S. financial institutions. The Department of Homeland Security, through ICE and U.S. Customs and Border Protection (CBP), plays a leading role in combating this threat. From FY 2003 through FY 2005, ICE agents have arrested more than 260 individuals for bulk cash smuggling and, together with CBP officials, have seized a combined total of more than $100 million in bulk cash smuggling cases.

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