ICE issues Geographic Targeting Order to 700 Miami-based businesses
Permits law enforcement to look for trade-based money laundering schemes
WASHINGTON — U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) issued a Geographic Targeting Order (GTO) today to 700 businesses in Miami, bringing their transactions under stricter scrutiny while law enforcement look for evidence of trade-based money laundering schemes often used by violent criminal organizations to launder their profits.
Under current regulations, a business that receives more than $10,000 in a single transaction, or several related transactions, must file Form 8300 with Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury tasked with safeguarding financial systems from illicit use and combating money laundering. This GTO lowers that threshold to $3,000 for affected businesses. In addition to filing the form at the lower threshold, businesses must complete reports regarding persons involved in the transaction. The higher level of inspection enhances law enforcement’s ability to identify and prosecute money launderers.
“A GTO is one of many tools available in the fight against money laundering. Past successes show that GTOs can be effective in exposing criminal organizations using legitimate financial institutions and businesses to facilitate their illicit dealings, “said HSI Executive Associate Director Peter Edge. “Homeland Security Investigations is dedicated to disrupting these activities and dismantling these organizations to protect the security of the nation’s financial infrastructure.”
HSI partnered with the Financial Crimes Enforcement Network (FinCEN) and the Miami Dade State Attorney’s Office South Florida Money Laundering Strike Force to issue this GTO, which is focused specifically on electronics exporters near Miami.
“When we issued a similar GTO in the Los Angeles area last year, many speculated about whether we’d be doing the same in other parts of the country,” said FinCEN Director Jennifer Shasky Calvery. “We will continue issuing GTOs, as necessary, as well as exercising FinCEN’s other unique anti-money laundering authorities, to ensure a transparent financial system that impedes money launderers and other criminals from masking their identity and illicit activity.”
Notice of a GTO is sent to businesses via certified mail and failure to cooperate could result in civil and criminal penalties. Businesses covered by the GTO have been served a copy of the order and must begin to comply with the order April 28, 2015. A copy of the order may be found here. Any questions about the order should be directed to the FinCEN Resource Center at 800-767-2825.
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