Financial Crime World

Domestic Terrorism Threat Grows: Militia Extremists and RMVEs Pose Lethal Dangers

The domestic terrorism threat has been assessed to pose a significant danger, with militia violent extremists (MVEs) and racial/ethnic minority violent extremists (RMVEs) identified as the most lethal threats.

MVEs and RMVEs: Ideological Agendas and Violent Extremism

  • MVEs focus on anti-government or anti-authority ideologies and have used or threatened acts of violence to promote their agendas.
  • RMVEs purport to use both political and religious justifications to support racially or ethnically based ideological objectives and criminal activities.

Targets and Tactics

  • DVEs (domestic violent extremists) often focus on accessible targets like:
    • Civilians
    • Law enforcement
    • The military
    • Symbols or members of the U.S. government
    • Houses of worship
    • Retail locations
    • Mass public gatherings
  • Insular radicalization and mobilization to violence make it challenging for law enforcement to detect and disrupt DVE activities before they occur.

Fraud on the Rise

In addition to the domestic terrorism threat, fraud is a growing problem in the United States. The assessment highlights the following:

Illicit Proceeds Generation

  • Fraud generates the largest share of illicit proceeds, with health care fraud estimated to generate around $100 billion annually.
  • Other crimes that generate significant illicit proceeds include:
    • Drug trafficking
    • Human smuggling
    • Human trafficking
    • Organized crime
    • Corruption

Internet-Enabled Fraud Schemes

  • Romance scams and synthetic identity fraud are becoming increasingly common.
  • Proceeds from fraudulent activities may be laundered through various methods, including:
    • Transfers through accounts of offshore legal entities
    • Accounts controlled by cyber actors
    • Money mules

Foreign Intelligence Entities and Transnational Criminal Organizations

The assessment warns about the threats posed by foreign intelligence entities and transnational criminal organizations (TCOs):

  • These groups employ illicit financial practices to fund influence campaigns and facilitate espionage activity.
  • TCOs operating in the United States, including drug trafficking organizations, are priority threats due to their engagement in a wide range of illicit activities.

In response to these threats, FinCEN has issued several fraud-related advisories, including those related to:

  • Business email compromise
  • Email account compromise
  • COVID-19

Conclusion

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The assessment concludes that the financial sector must remain vigilant in detecting and preventing the laundering of proceeds from illicit activities. Effective collaboration between law enforcement agencies, regulatory bodies, and the private sector is essential to mitigating these threats and protecting the integrity of the financial system.