{"id":1823,"date":"2021-12-30T17:08:01","date_gmt":"2021-12-30T21:08:01","guid":{"rendered":"http:\/\/ielrblog.com\/?p=1823"},"modified":"2021-12-30T17:08:01","modified_gmt":"2021-12-30T21:08:01","slug":"gao-publishes-report-on-trafficking-and-money-laundering-required-by-corporate-transparency-act","status":"publish","type":"post","link":"https:\/\/ielrblog.com\/index.php\/2021\/12\/30\/gao-publishes-report-on-trafficking-and-money-laundering-required-by-corporate-transparency-act\/","title":{"rendered":"GAO Publishes Report on Trafficking and Money Laundering Required by Corporate Transparency Act"},"content":{"rendered":"

GAO Publishes Report on Trafficking and Money Laundering Required by Corporate Transparency Act<\/p>\n

On December 23, 2021, the General Accountability Office (GAO) published\u00a0 Report on Trafficking and Money Laundering Strategies Used by Criminal Groups and Terrorists and Federal Efforts to Combat Them<\/a> (GAO-22-104807 53 pp.).<\/p>\n

The GAO reviewed how transnational criminal organizations and terrorist groups traffic goods such as illegal drugs, engage in human trafficking, and launder money.<\/p>\n

Reasons for and Goals of the Report<\/em><\/p>\n

Congress\u00a0 included a\u00a0 provision\u00a0 in\u00a0 the\u00a0 Money Laundering Act of 2020, which was part of the National\u00a0 Defense Authorization\u00a0 Act\u00a0 for\u00a0 Fiscal\u00a0 Year\u00a0 2021, for the\u00a0 GAO\u00a0 to\u00a0 review\u00a0 trafficking and related\u00a0 money\u00a0 laundering\u00a0 and \u00a0create federal efforts\u00a0 to\u00a0 combat\u00a0 them.<\/p>\n

The goals of the report are to describe\u00a0 what\u00a0 is\u00a0 known\u00a0 about\u00a0 the money\u00a0 laundering\u00a0 strategies\u00a0 of transnational\u00a0 criminal\u00a0 organizations and\u00a0 terrorists\u00a0 and\u00a0 information-sharing efforts\u00a0 among\u00a0 federal\u00a0 agencies\u00a0 to combat\u00a0 trafficking.<\/p>\n

Findings- Money Laundering Techniques<\/em><\/p>\n

Federal agencies, international organizations, and other commentators, such as non-governmental organizations, have reported that money laundering strategies used by transnational criminal organizations and terrorist groups include sophisticated techniques such as phony trade transactions or purchase and resale of real estate or art.<\/p>\n

The techniques can involve the services of professional money laundering networks or service providers in legitimate professions, such as law and accounting. For example, lawyers or accountants can create shell companies (entities with no business operations) to help criminals launder illicit proceeds. Transnational criminal organizations and terrorist groups also continue to smuggle cash in bulk or transmit money electronically across borders.\u00a0 The report also mentions the role of real estate agents, company service providers, and art and antiquities dealers.<\/p>\n

Federal Efforts to Combat Trafficking and Money Laundering<\/em><\/p>\n

Federal\u00a0 efforts\u00a0 to\u00a0 combat\u00a0 trafficking\u00a0 and\u00a0 money\u00a0 laundering\u00a0 incorporate\u00a0 multiple collaborative\u00a0 and\u00a0 information-sharing\u00a0 mechanisms\u00a0 and\u00a0 include\u00a0 the\u00a0 private\u00a0 sector.<\/p>\n