ICE Has Limited Ability to Identify and Combat Trade-Based Money Laundering Schemes

Date Issued

Wednesday, August 23, 2023

Submitting OIG

Department of Homeland Security OIG

Other Participating OIGs

Department of Homeland Security OIG

Agencies Reviewed/Investigated

Department of Homeland Security

Components

United States Immigration and Customs Enforcement (ICE)

Report Number

OIG-23-41

Report Description

U.S. Immigration and Customs Enforcement (ICE) has limited ability to identify and combat commodities imported as part of trade-based money laundering (TBML) schemes. Specifically, ICE does not have automated technology to identify import commodities at high risk for TBML schemes. Instead, it identifies TBML activities through manual searches of import records, which is time-consuming. Funding constraints and competing priorities have hampered ICE’s development of automated capabilities to identify TBML schemes.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Open Recommendations

This report has 2 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1	No	$0	$0
We recommend the Executive Associate Director for Homeland Security Investigations develop and implement a work plan detailing prioritized upgrades to the Repository for Analytics in a Virtualized Environment, Data Analysis & Research for Trade Transparency System, estimated funding requirements for those upgrades, and timelines for implementing the upgrades. The upgrades should include processes to achieve program objectives and respond to program risks such as capabilities to facilitate identifying trade-based money laundering transactions.
2	No	$0	$0
We recommend the Executive Associate Director for Homeland Security Investigations conduct an analysis of the Trade Transparency Unit workforce to determine the number of full-time staff needed to accomplish the unit’s mission and convey those requirements to the Office of the Chief Financial Officer for future funding consideration.