United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2000-10-31 monographic deposited born digital 17 p. GA 1.13:GAO-01-120 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-120 P0b002ee180386512 f:d01120 DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-01-120 machine generated eng fdlp REPORT GAOREPORTS-GAO-01-120 GAO-01-120 Banking regulation Money laundering Bank examination Fraud Internal controls Organized crime Financial institutions Foreign corporations Russia Delaware Letter Report This report discusses possible money laundering by U.S. corporations formed for Russian entities. It is easy for foreign entities to hide their identities while forming shell corporations that can be used for the purpose of laundering money. GAO investigated two Delaware corporations that are suspected of participating in money laundering activities, Euro-American Corporate Services, Inc. and International Business Creations. Suspicious banking activity involved correspondent bank accounts and wire transfers of funds from Eastern European banks through U.S. banks to other Eastern European banks. Two U.S. banks, Citibank of New York and Commercial Bank of San Francisco, violated their customer policies by failing to close the accounts of clients who did not comply with the bank's requirement to appear at the bank in person within 30 days of opening an account. These banks facilitated the transfer of approximately $1 billion from Eastern Europe, through U.S. banks, and back to Eastern Europe by corporations formed for Russian brokers. It is possible that these transfers were used to launder money. GAO referred the matter to appropriate law enforcement authorities. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-120/html/GAOREPORTS-GAO-01-120.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-01-120/pdf/GAOREPORTS-GAO-01-120.pdf GAO-01-120 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-01-120 Letter Report GAO-01-120; Suspicious Banking Activities: Possible Money Laundering; Banking regulation Money laundering Bank examination Fraud Internal controls Organized crime Financial institutions Foreign corporations Russia Delaware