U.S. Sens. Angus King (I-ME), Sheldon Whitehouse (D-RI), and Bill Cassidy, M.D. (R-LA) have introduced a bill in the U.S. Senate that would combat cross-border money laundering.
The Combating Cross-border Financial Crime Act of 2023 would establish a Cross-Border Financial Crime Center within the Department of Homeland Security. This center would coordinate investigations and information-sharing across the federal government related to financial crimes with a nexus to the U.S. border.
While multiple U.S. agencies broadly address financial crimes, there is no one agency whose mission is to focus solely on cross-border financial crimes. The lawmakers said that this lack of coordination contributes to the current 99 percent failure rate in catching criminals laundering funds through the United States.
“Our current response to cracking down on illicit cross-border trade is broken, and siloed departments are creating gaps for money launderers and other criminals to slip through,” King said. “The Combating Cross-border Financial Crime Act of 2023 would establish a Cross-Border Financial Crime Center within the Department of Homeland Security that coordinates information sharing, so federal law enforcement can work seamlessly with state, local and international partners to fight crime, terrorism and the financial structures that enable them.”
As a result of the 99 percent failure rate when attacking the financial networks of transnational criminal organizations, massive illicit proceeds flow through the U.S. financial system each year. In 2021, the amount totaled approximately $466 billion. These illicit funds enable transnational criminal organizations, kleptocrats, tax evaders, and terrorists to expand their empires and undermine national and financial security.
“International kleptocrats, criminals, and cartels are exploiting regulatory and enforcement gaps to move their loot across our borders and launder it through our financial system,” Whitehouse said. “My bipartisan bill with Senator Cassidy will better coordinate our whole-of-government response to financial crimes and help ensure the kleptocrats and criminals hiding their money in America will be held to account.”
The new center would be located within the lead criminal investigation arm of the Department of Homeland Security, Homeland Security Investigations (HSI).
“The U.S. needs a coordinated effort to combat counterfeit and illegal goods crossing our border. Our current approach is simply not working,” Cassidy said. “A Fusion Center dedicated to fighting illicit trade will protect Americans and stop drug traffickers, Chinese counterfeiters, and other bad actors from profiting off of gaps in our customs laws.”