Cash Flow: $160 Million Seized from Southbound Smugglers

In Marcy Forman’s March 1 testimony on border violence, the director of investigations for Immigration and Customs Enforcement told Senate subcommittess that ‘bulk cash’ was a prime cargo of southbound smugglers:

"The smuggling of bulk currency out of the United States, and especially across the Southwest border, has become one of the preferred methods of moving illicit proceeds out of the country. As such, criminal organizations now seek to exploit vulnerabilities in border security. ICE is the lead agency responsible for the investigation of financial crimes occurring at our borders. This is a critical part of the overall strategy to dismantle and destroy these smuggling organizations by taking away their illegal profits. "Congress criminalized the act of smuggling large amounts of cash into or out of the U.S. in the USA PATRIOT Act one of the provisions of the USA PATRIOT Act, 31 U.S.C. 5332 – Bulk Cash Smuggling makes it a crime to conceal and smuggle over $10,000 in currency and monetary instruments into or out of the United States with the intent to evade in an attempt to violate U.S. currency-reporting requirements. ICE agents have utilized this authority since the statute was enacted to arrest over 330 individuals for bulk cash smuggling violations. In addition to these arrests, ICE and our partners at CBP have cumulatively seized over $160 million of the funds that were involved in these bulk cash smuggling violations.

"ICE’s enforcement of the law against bulk cash smuggling does not end at our Nation’s borders. In August 2005, ICE partnered with CBP and the State Department to initiate a training program with our Mexican counterparts on ways to combat cash smuggling. As a result of this training and working with us on this joint financial initiative together, our Mexican counterparts have seized over $18 million in cash and $5 million in negotiable instruments that were involved in violations of Mexican currency- reporting requirements.

"In addition to our efforts to combat bulk cash smuggling, ICE works aggressively to identify and investigate other financial methods that criminals use to move their illicit funds out of the United States — such as the use of unlicensed money- services businesses. These unlicensed businesses operate outside of the traditional banking system and governmental oversight and have been long recognized by law enforcement as vulnerable to abuse. The enhancements in 18 U.S.C. 1960, Prohibition of Unlicensed Money Transmitting Business, enacted through the USA PATRIOT Act, provide law enforcement with the authority to investigate unlicensed money remitters.

"Since the passage of the PATRIOT Act, ICE investigations of unlicensed money- services businesses have resulted in over 171 arrests and the seizure of over $25 million in currency. Additionally, during fiscal year 2005, ICE investigations resulted in the seizure of nearly $1 billion in currency and assets from the criminals who exploit our borders."