Central Louisiana News

U.S. Senators Bill Cassidy, Sheldon Whitehouse, and Angus King have introduced the Combating Cross-border Financial Crime Act of 2023. This legislation aims to establish a Cross-Border Financial Crime Center within the Department of Homeland Security, which will coordinate investigations and information sharing related to financial crimes with a nexus to the U.S. border.

Dr. Cassidy highlights the need for a coordinated effort to combat counterfeit and illegal goods crossing the border, stating that the current approach is not effective. He believes that a Fusion Center dedicated to fighting illicit trade will protect Americans and prevent drug traffickers, Chinese counterfeiters, and other bad actors from profiting off gaps in customs laws.

Senator Whitehouse emphasizes the exploitation of regulatory and enforcement gaps by international kleptocrats, criminals, and cartels. He states that the bipartisan bill with Senator Cassidy will better coordinate the government's response to financial crimes and ensure that those hiding their money in America will be held accountable.

Senator King highlights the broken response to cracking down on illicit cross-border trade. He believes that siloed departments are creating gaps for money launderers and other criminals to slip through. The Combating Cross-border Financial Crime Act of 2023 aims to establish a Cross-Border Financial Crime Center within the Department of Homeland Security to coordinate information sharing and enable federal law enforcement to work seamlessly with state, local, and international partners.

The United States and its global partners currently have a 99 percent failure rate when combatting the financial networks of transnational criminal organizations. This failure allows massive illicit proceeds, totaling approximately $466 billion in 2021, to flow through the U.S. financial system. These funds enable transnational criminal organizations, kleptocrats, tax evaders, and terrorists to expand their empires and undermine American national and financial security.

The lack of coordination among U.S. agencies in addressing financial crimes contributes to the 99 percent failure rate and enables bad actors to launder funds into, through, and out of the U.S. The senators' legislation aims to create a central hub, the Cross-Border Financial Crime Center, within Homeland Security Investigations (HSI). HSI is well-positioned to house and operate the Center due to its unique access to cross-border trade data required to combat trade-based money laundering.

The Cross-Border Financial Crime Center Act also provides stable funding for the Department of Homeland Security's Trade Transparency Units (TTU) program. This program prevents criminal actors from exploiting international trade and financial infrastructures by establishing agreements with partner nations to share import-export data. Importantly, the bill prohibits funding for the Center or the TTU program from being used to support any immigration removal or enforcement activities.

In 2021, the Government Accountability Office (GAO) released a report highlighting the need for better information sharing and collaboration to address Trade Based Money Laundering (TBML). Cassidy and Whitehouse had requested this report in 2018 as part of their ongoing effort to combat TBML. The report recommends that the Treasury Department establish an interagency information sharing and data analysis program, and that the Department of Homeland Security (DHS) begin sharing Trade Transparency Unit (TTU) data with relevant agencies.

Last year, the Senate passed a resolution led by Cassidy urging Congress to combat international criminal organizations, illicit trade, and the use of TBML.

The introduction of the Combating Cross-border Financial Crime Act of 2023 is a crucial step towards addressing the challenges posed by cross-border money laundering and financial crimes. With a coordinated effort and improved information sharing, the U.S. aims to disrupt the operations of transnational criminal organizations and protect its national and financial security.

For additional details, please follow this link: https://www.cassidy.senate.gov/newsroom/press-releases/cassidy-whitehouse-king-introduce-bill-to-combat-cross-border-money-laundering-financial-crimes/