Financial Crime World

Financial Crime in the United States: FinCEN’s Mission to Combat Illicit Activities

The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, is responsible for safeguarding the financial system from illicit use and combating money laundering and terrorist financing. As the nation’s first and most comprehensive anti-money laundering and counter-terrorism financing statute, FinCEN plays a critical role in supporting law enforcement investigations and national security efforts.

Regulatory Functions

FinCEN exercises regulatory functions primarily under the Bank Secrecy Act (BSA), which authorizes the Secretary of the Treasury to issue regulations requiring banks and other financial institutions to take precautions against financial crime. The BSA requires financial institutions to establish anti-money laundering programs and file reports that have a high degree of usefulness in criminal, tax, and regulatory investigations.

Financial Intelligence Unit

As one of the world’s leading Financial Intelligence Units (FIUs), FinCEN exchanges financial information with FIU counterparts around the globe to support U.S. and foreign financial crime investigations. With its “follow the money” approach, FinCEN partners with law enforcement agencies at all levels of government to investigate and disrupt criminal networks, including those involved in:

  • Fraud
  • Tax evasion
  • Narcotics trafficking
  • Terrorist financing

Duties and Responsibilities

FinCEN’s duties and responsibilities include:

  • Issuing and interpreting regulations
  • Supporting compliance with those regulations
  • Analyzing data for law enforcement purposes
  • Maintaining a government-wide access service to FinCEN’s data
  • Sharing information with foreign FIU counterparts
  • Supporting policymakers, law enforcement agencies, regulatory bodies, and the financial industry

International Cooperation

As the FIU for the United States, FinCEN is part of the Egmont Group, an international entity focused on information sharing and cooperation among FIUs. With its expertise in financial intelligence and strategic use of financial authorities, FinCEN plays a critical role in protecting the nation’s financial system from illicit activities.

In summary, FinCEN is a vital component in the fight against financial crime, providing crucial support to law enforcement agencies and policymakers through its regulatory functions, financial intelligence gathering, and international cooperation.