Search

Begin New Search Topic Financial Crimes Political Geography United States of America

1. CTC Sentinel: June 2023 Issue

Author:
Pierre Boussel, Kristina Hummel, Teddy Macdonald, Ashley A. Mattheis, Amarnath Amarasingam, Graham Macklin, and Marc-Andre Argentino
Publication Date:
06-2023
Content Type:
Journal Article
Journal:
CTC Sentinel
Institution:
The Combating Terrorism Center at West Point
Abstract:
In this month’s feature article, Pierre Boussel provides a deep examination of the Quds Force in Syria. He writes: “The key mission of the Quds Force of the Revolutionary Guards (IRGC) is to defend the Iranian Islamic Revolution and create armed militias in the countries of its ‘Axis of Resistance.’ Its organization is opaque and complex, coordinating combat operations with soft-power actions aimed at, among other initiatives, establishing a Pax Irania in the Middle East, a ‘peace’ of which it is the initiator and guarantor. Although the Quds Force’s apparatus in Syria has been under pressure from Israeli airstrikes, Tehran is sticking to its mission set: infiltrating Syrian civil society and sending fighters to the north, where the civil war will one day end, and to the south, on the edge of the Golan Heights, to establish a base against Israel if necessary.” Our interview is with Brian Nelson, the Under Secretary of the Treasury for Terrorism and Financial Intelligence. He describes how his office “marshals the Department’s intelligence and enforcement functions with the dual aims of safeguarding our financial system against illicit use and also combating corrupt regimes, terrorist facilitators, weapons of mass destruction proliferators, money launderers, drug kingpins, and other national security threats.” On May 6, 2023, Mauricio Garcia, a man with longstanding neo-Nazi views, murdered eight people in a mass shooting at the Allen Premium Outlets mall in Allen, Texas. Ashley Mattheis, Amarnath Amarasingam, Graham Macklin, and Marc-André Argentino look at what led to the attack. They write that the deceased perpetrator “had an ideologically fuzzy tapestry of extreme thoughts tied to rampant violence. He appeared to view neo-Nazis and other members of the extreme far-right as living the ‘real’ masculine ideal in its fullest form by their commitment to generating dominance through violent, radical, racial, and cultural action. This interaction between race and gender is an increasingly present aspect of far-right violence and needs to be better understood.”
Topic:
Counter-terrorism, Financial Crimes, Far Right, Mass Shootings, Islamic Revolutionary Guard Corp (IRGC), Political Extremism, Quds Force, Domestic Terrorism, and Axis of Resistance
Political Geography:
Iran, Middle East, Israel, Palestine, Syria, North America, United States of America, and Golan Heights

2. ‘Follow the Money’: tracking the diffusion of the American anti-money laundering policy in Latin America (1990s-2000s)

Author:
Mariana Medeiros Bernussi, Priscila Villela, and Lívia Jardinovsky Debatin
Publication Date:
04-2023
Content Type:
Journal Article
Journal:
Conjuntura Austral: Journal of the Global South
Institution:
Conjuntura Austral: Journal of the Global South
Abstract:
Given the wide reach of transnational crimes and the illegal flow of money, policing at an international level has become a new frontier for authorities who aim to control these threats. The United States has taken the center stage in this effort ever since the proclamation of the War on Drugs and the continuing War on Terror by promoting the ‘Follow the Money’ principle as a fundamental strategy to be adopted worldwide. The main goal of this paper is to identify the US efforts to formulate and expand the anti-money laundering agenda and policies to Latin America, from the 1990s to the 2000s, mobilizing the policy diffusion approach. By incorporating this thinking tool, we also aim to highlight the United States hegemonic position when establishing agendas and priorities internationally. Therefore, based on a qualitative design, we trace US official documents describing strategies, practices and policies aimed at promoting anti-money laundering policies in Latin American institutions through coercion, competition, learning and emulation mechanisms. As a result, by promoting training events and formulating evaluation mechanisms, the US has stimulated Latin American countries to elaborate their own law enforcement efforts inspired by these same paradigms, indicating that the US uses these anti-money launderinginstruments to promote its policy agenda internationally.
Topic:
War on Drugs, Financial Crimes, War on Terror, Money Laundering, and Policy Diffusion
Political Geography:
Latin America and United States of America

3. U.S.-ROK Strategy for Enhancing Cooperation on Combating and Deterring Cyber-Enabled Financial Crime

Author:
Jason Bartlett
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Center for a New American Security (CNAS)
Abstract:
The May 2022 U.S.-ROK Summit between President Joe Biden and President Yoon Suk-yeol revitalized previous bilateral commitments to establish a joint cyber working group to address the growing issue of cyber-enabled financial crime with specific emphasis on cryptocurrency, blockchain technology, and illicit North Korean cyber activity.1 This report provides specific policy recommendations for Washington and Seoul to incorporate within the cyber working group to enhance cooperation on combating and deterring cyber-enabled financial crime, especially from state-sponsored actors. North Korea has become the greatest state-sponsored threat to the global financial services sector. From 2021 to June 2022 alone, North Korean cyber operatives and their facilitators stole more than $1 billion (in U.S. currency, as throughout this report unless otherwise indicated) in digital assets through hacking cryptocurrency exchanges and laundering the stolen funds using various financial technologies and obfuscation techniques, including cryptocurrency mixers and foreign over-the-counter brokers. Pyongyang will likely maintain this position as long as the potential gains of cyber operations against financial services are greater than the potential risks and resources needed to conduct these operations. Washington and Seoul must work together to change this reality. This report compiles the findings of a year-long research project to generate actionable policy recommendations for Washington and Seoul to incorporate within their joint cyber working group to strengthen joint deterrence against state-sponsored cyber-enabled financial crime that continues to target both U.S. and South Korean social, financial, and cyber infrastructure. Based on intensive field research and interviews with U.S. and ROK stakeholders, this report outlines current challenges to enhancing U.S.-ROK cyber coordination, details the evolution of North Korea’s cyber program and modern-day threats, provides policy recommendations for the joint cyber working group, and includes an appendix with all relevant U.S. and ROK agencies that can contribute valuable expertise to the group.
Topic:
International Cooperation, Bilateral Relations, Cybersecurity, and Financial Crimes
Political Geography:
Asia, South Korea, North Korea, North America, and United States of America

4. Regulating The Enablers: How the U.S. Treasury Should Prioritize Imposing Rules on Professionals Who Endanger National Security by Handling Dirty Money

Author:
Josh Rudolph
Publication Date:
09-2021
Content Type:
Policy Brief
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
When kleptocrats, foreign intelligence services, homegrown autocrats, and other malign actors weaponize corruption to undermine U.S. democracy, their financial secrecy relies upon the services of ten sectors of U.S. professionals, including lawyers, real estate agents, hedge fund managers, and others. The U.S. government should promulgate new financial regulations—similar to existing rules for banks—that would require non-bank enablers to watch out for dirty money. Regulators should prioritize six or seven sectors of professionals known to gravely endanger U.S. national security by facilitating corruption. Unfortunately, the United States is among the less than 10 percent of countries that do not require non-bank enablers to establish anti-money laundering (AML) programs, which are mandatory for banks. That is, unlike enablers based in more than 90 percent of the world, U.S. non-bank enablers do not need to have compliance officers, trainings, audits, and controls reasonably designed to spot potential money laundering by identifying customers, scrutinizing transactions, keeping records, and reporting suspicious activity to the government. Fortunately, that may change soon, as the regulation of enablers has become a top priority among U.S. lawmakers, law enforcement, civil society, and other stakeholders. President Joe Biden’s memorandum prioritizing the fight against corruption as a core national security interest—and ordering U.S. departments and agencies to develop a presidential anti-corruption strategy within 200 days—included a prominent warning about the threat of U.S.-based professional enablers who move and launder dirty money.
Topic:
National Security, Finance, Financial Crimes, and Money Laundering
Political Geography:
North America and United States of America

5. An Effective American Regime to Counter Illicit Finance

Author:
Joshua Kirschenbaum and David Murray
Publication Date:
12-2018
Content Type:
Policy Brief
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
The United States’ anti-money laundering (AML) regime began with the goal of tracking the movement of physical cash to aid law enforcement investigations in the 1970s, has expanded since then to encompass an array of national security threats including transnational terrorism, and to a certain extent has adapted to the predominance of electronic banking. Yet the practice of AML has not caught up to policymakers’ demands that financial institutions track activity as diverse as kleptocracy and corruption, weapons proliferation, or foreign political interference in a contemporary environment of near-frictionless cross-border flows of funds. The U.S. AML regime of 2018, undergirded by the Bank Secrecy Act (BSA), requires banks and other “covered financial institutions” to maintain a risk-based program to detect suspicious activity.These programs involve, among other things, conducting customer due diligence, monitoring transactions, and filing suspicious activity reports. When the regime functions at its best, financial institutions provide information to the government that gives early warning of threats to U.S. national security. When the regime functions poorly, though, the United States and its financial sector are exposed to a wide variety of threats, and malicious behavior is enabled, including hostile acts by foreign states, malicious cyber activity, weapons proliferation, terrorism, and transnational organized crime. The AML regime has evolved significantly from its primordial incarnation, but that evolution is incomplete. For the AML regime to fulfill its promise as a core element of the national defense, it must reorient from a focus on supporting investigations after crimes have occurred toward a focus on identifying threats and facilitating their preemption. “Anti-money laundering” is no longer an apt description of the regime, because it captures only a fraction of the tasks that policymakers have given to it. The system is better thought of as a full-spectrum counter-illicit finance (CIF) regime, with threat recognition and interdiction and support for U.S. sanctions programs among its explicit goals. To fully transition from an AML regime to a full-spectrum CIF regime, the United States should take a holistic approach that prioritizes greater transparency, the exploitation of big data, and rationalization of the regulatory architecture in the interest of greater efficiency. The benefits of reform would be further multiplied should the United States succeed in working with the European Union and other partners to cement these reforms as international standards that are adopted universally. Collective action would both make reform “stickier” (even if the U.S. financial system declines in international importance over the long term) and make less likely the prospect that, motivated by a desire to avoid greater transparency and oversight, large-scale economic activity would shift to comparatively non-transparent, poorly regulated jurisdictions. This brief presents the five areas that represent that greatest potential return on reform.
Topic:
Finance, Financial Crimes, and Money Laundering
Political Geography:
United States of America