DEFINITION of 'Financial Crimes Enforcement Network (FinCEN)'

The Financial Crimes Enforcement Network (FinCEN) is government bureau that maintains a network whose goal it is to prevent and punish criminals and criminal networks that participate in money laundering and other financial crimes. FinCEN, administered by the United States Department of the Treasury, operates domestically and internationally, and it consists of three major players: law-enforcement agencies, the regulatory community and the financial-services community.

BREAKING DOWN 'Financial Crimes Enforcement Network (FinCEN)'

By researching mandatory disclosures imposed on financial institutions, FinCEN tracks suspicious persons, their assets and their activities to make sure that money laundering is not occurring. FinCEN tracks everything from very complicated electronically based transactions to simple smuggling operations that involve cash. As money laundering is such a complicated crime, FinCEN seeks to fight it by bringing different parties together.

How FinCEN Battles Money Laundering

The director of FinCEN is appointed by the Secretary of the Treasury and reports to the Treasury Under Secretary for Terrorism and Financial Intelligence. FinCEN is authorized to exercise regulatory duties per the Currency and Financial Transactions Reporting Act of 1970, as amended by Title III of the USA PATRIOT Act of 2001.

FinCEN received duties and responsibilities from Congress to serve as a central collection hub, provide analysis, and disseminate data to support the financial industry as well as government partners at local through international levels.

In order to fulfill its duties to detect and deter financial crimes, FinCEN can issue and interpret relevant regulations that have been authorized by statute, enforce compliance with said regulations, and coordinate and analyze data related to compliance examination functions that were delegate to other regulators. FinCEN also manages the collection, processing, dissemination, and protection of data required to be reported. Access to FinCEN’s data is maintained for government use.

The information and services of FinCEN are used to support law enforcement investigations into and the prosecution of financial crimes. The data gathered by FinCEN is processed to make recommendations on the allocation of resources where there is great risk of financial crime. The bureau shares its information in collaboration with foreign financial intelligence counterparts for Anti-Money Laundering/Combating the Financing of Terrorism efforts. The bureau also provides analysis for the benefit of policymakers, law enforcement, regulatory, and intelligence agencies.

FinCEN represents the United States as one of more than 100 financial intelligence units that comprise the Egmont Group, which is an international organization whose mission is to share information and cooperate among its members.

RELATED TERMS
  1. Certified Anti-Money Laundering ...

    A Certified Anti-Money Laundering Specialist (CAMS) is a professional ...
  2. Convertible Virtual Currency

    Convertible virtual currency is an unregulated digital currency ...
  3. Bank Secrecy Act (BSA)

    The Bank Secrecy Act (BSA) is federal legislation meant to prevent ...
  4. FINTRAC

    FINTRAC - Financial Transactions and Reports Analysis Centre ...
  5. Jurisdiction Risk

    The risk that arises when operating in a foreign jurisdiction. ...
  6. Treasury General Account

    The Treasury General Account is the general checking account, ...
Related Articles
  1. Insights

    Tax Implications of Opening a Foreign Bank Account

    Learn about the tax implications of opening a foreign bank account, including accounts that generate earned or unearned income from overseas activity.
  2. Tech

    Bitcoin's Main Stumbling Block: Navigating The Law

    Coders created Bitcoin to be decentralized and independent of governments and banks. Authorities are still struggling to create a legal framework.
  3. Tech

    5 Most Bitcoin Friendly Countries

    Learn which countries are the most favorable for using bitcoin as of December 2015, as well as current trends for and against its usage.
  4. Insights

    6 Tax Forms for Investors Who Have Money Abroad

    If you're a U.S. citizen or resident, and you own assets in other countries, you might need to file these six forms with the government.
  5. Insights

    A Cost-Benefit Analysis of Mass Incarceration

    The Council of Economic Advisers' latest report offers a fresh perspective on mass incarceration: weighing the costs and benefits to society, it shows how economically ineffective the policy ...
  6. Insights

    Trump's Executive Orders (So Far)

    Trump has been fulfilling campaign promises by issuing executive orders.
  7. Investing

    Top 6 Factors For Homebuyers

    As a first time buyer, there is much to consider. Here we have a look at some of the factors that may influence your decision, and suggest which factors are worth taking a second look at.
  8. Tech

    The Future Of Cryptocurrency

    The emergence of Bitcoin has sparked a debate about its future and that of other cryptocurrencies. Despite Bitcoin’s recent issues, its success since its 2009 launch has inspired the creation ...
  9. Tech

    Why the War on Cash?

    Recently, the European Central Bank (ECB) announced that it intends to stop minting €500 notes, in a move that they say is meant to curb fraud and money laundering.
  10. Tech

    Bitcoin Innovations And Obstacles

    Investopedia explains the development of the Bitcoin digital currency system and the risks associated with using and investing in it.
RELATED FAQS
  1. Why does fighting money laundering reduce overall crime?

    Fighting money laundering reduces overall crime by helping identify perpetrators, restoring stolen money to victims and disrupting ... Read Answer >>
  2. What methods are used to launder money?

    Learn about the methods that criminals use when they are looking to launder money. Many different methods are used, and they ... Read Answer >>
  3. What is the difference between business intelligence and competitive intelligence?

    Understand the difference between business intelligence and competitive intelligence. Learn why both are important for the ... Read Answer >>
  4. How are asset management firms regulated?

    Find out how the asset management industry is regulated and how those regulations fit within the broader scope of financial ... Read Answer >>
Trading Center