Money Laundering

Civil Penalty Referrals for Violations of the Bank Secrecy Act Have Declined Gao ID: T-GGD-92-57 June 30, 1992

To counter money laundering, the Bank Secrecy Act requires that financial institutions and businesses like casinos record and report transactions involving more than $10,000 in cash. Violations of the law, which can result in both criminal and civil penalties, are referred to the Department of the Treasury's Office of Financial Enforcement for review. The number of referrals made by regulatory agencies has declined from a high of 136 in 1986 to 26 in 1991, and the Office has not processed civil penalty referrals in a timely manner. Some of the referrals GAO has examined have been awaiting resolution for more than a year, and the statute of limitations expired during processing for 11 of 20 cases closed without a penalty assessment. The Office has hired more staff and has improved its case-tracking system, steps that GAO believes should result in faster processing.



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