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 2001-10-10 monographic deposited born digital 92 p. GA 1.13:GAO-02-111 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-111 P0b002ee1803a180a f:d02111 DGPO 2010-08-12 2011-03-28 GAOREPORTS-GAO-02-111 machine generated eng fdlp REPORT GAOREPORTS-GAO-02-111 GAO-02-111 Banking regulation Brokerage industry Financial institutions Interagency relations Law enforcement Money laundering Mutual funds Regulatory agencies Securities regulation Self-regulatory organizations Other Written Product A02225 Money laundering is criminal activity that occurs when individuals or organizations seek to disguise or place illegally obtained funds in the stream of legitimate commerce and finance. Money lauderers have traditionally targeted banks, which accept cash and facilitate domestic and international funds transfers. However, the U.S. securities markets, which are the largest and most liquid in the world, may also be targeted by criminals seeking to hide and obscure illicit funds. Although they acknowledge that the number of documented cases in which broker-dealer or mutual fund accounts have been used to launder money was limited, law enforcement agencies are concerned that criminals may increasingly attempt to use the securities industry to launder money. Currently, most broker-dealers or firms that process customer payments for mutual fund groups are subject to all U.S. anti-money laundering requirements. But unlike banks and other depository institutions, most of these firms are currently not required to report suspicious activities that could be evidence of money laundering. The Department of the Treasury is in the process of developing a rule requiring broker-dealers to report suspicious activities related to money laundering and anticipates that such a rule will be issued for public comment by the end of 2001. Various intergovernmental bodies, such as the Financial Action Task Force, have worked internationally to develop recommendations that pertain to financial institutions, including securities firms. These recommendations call for member countries to take a number of actions to combat money laundering through their financial institutions, including requiring securities firms to report suspicious activities. Although many member countries reported that they have issued all or many of these recommended requirements and applied them to their securities firms, ascertaining how well the measures are being implemented and enforced is difficult. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-111/html/GAOREPORTS-GAO-02-111.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-02-111/pdf/GAOREPORTS-GAO-02-111.pdf GAO-02-111 https://www.govinfo.gov/app/details/GAOREPORTS-GAO-02-111 Other Written Product GAO-02-111; Anti-Money Laundering: Efforts in the Securities Industry; Banking regulation Brokerage industry Financial institutions Interagency relations Law enforcement Money laundering Mutual funds Regulatory agencies Securities regulation Self-regulatory organizations Title 31 Part 103.11 31 CFR Part 103.11