Date: January 19, 1993
Sunset Review: TBD
Expiration Date: TBD
SUBJECT: Organization and Functions of the Office of the Assistant Secretary (Enforcement)
1. PURPOSE. This directive describes the organization and functions of the Office of the Assistant Secretary (Enforcement).
2. THE ASSISTANT SECRETARY (ENFORCEMENT) reports to the Secretary through the Deputy Secretary and is responsible for the following functions.
a. Coordinates all Treasury law enforcement matters, including the formulation of policies for all Treasury enforcement activities.
b. Ensures cooperation and proper levels of Treasury participation in law enforcement matters with other Federal departments and agencies.
c. Provides Departmental oversight and supervision of the U.S. Customs Service (USCS), U.S. Secret Service (USSS), Bureau of Alcohol, Tobacco and Firearms (BATF), the Federal Law Enforcement Training Center (FLETC), and the Financial Crimes Enforcement Network (FinCEN).
d. Negotiates international agreements on behalf of the Secretary to engage in joint law enforcement operations and for the exchange of financial information and records useful to law enforcement.
3. ORGANIZATION STRUCTURE. The Assistant Secretary supervises the Deputy Assistant Secretary (Law Enforcement), the Deputy Assistant Secretary (Regulatory, Tariff and Trade Enforcement) and the Director of the Financial Crimes Enforcement Network.
4. THE DEPUTY ASSISTANT SECRETARY (LAW ENFORCEMENT) acts, as assigned, for the Assistant Secretary in the Assistant Secretary's absence and is responsible for the following functions.
a. Represents the Assistant Secretary (Enforcement) on major law enforcement matters that require top level attention in the Department of the Treasury, including currency violations, smuggling, forgery, counterfeiting, international and domestic money laundering, and other violations of laws over which the Department of the Treasury bureaus have jurisdiction.
b. Provides leadership for Treasury's participation in national law enforcement programs and efforts, relating to the suppression of narcotics and dangerous drug smuggling and other interdepartmental law enforcement programs that may arise.
c. Coordinates and develops Treasury's law enforcement policy.
d. Supervises the Office of Financial Enforcement, the Office of Law Enforcement and the Executive Office for Asset Forfeiture, and provides staff assistance and advice on day-today matters and policy issues relating to FinCEN.
(1) The Office of Financial Enforcement is responsible for the following functions.
(a) Assists in implementing the Bank Secrecy Act (Public Law 91-508), promulgating, interpreting, administering, and enforcing related Treasury regulations, 31 CFR Part 103, and internal guidelines, and combating domestic and international financial criminal activity, including money laundering.
(b) Coordinates and monitors analysis and dissemination of Bank Secrecy Act data and compliance activities and other functions of agencies delegated responsibilities by the Secretary under the Bank Secrecy Act, including the Board of Governors of the Federal Reserve System, the Comptroller of the Currency, the Office of Thrift Supervision, the National Credit Union Administration, the Securities and Exchange Commission, the Federal Deposit Insurance Corporation, the U.S. Postal Service, USCS, FinCEN, and the Internal Revenue Service (IRS).
(c) Evaluates and recommends to the Deputy Assistant Secretary (Law Enforcement) requests for dissemination of Bank Secrecy Act report information, and recommends dissemination guidelines and policies for USCS, IRS and FinCEN.
(d) Serves as principal staff for the Assistant Secretary (Enforcement) on matters relating to those State and Federal agencies that have compliance responsibilities for the Bank Secrecy Act, other Federal, State, local and foreign governmental agencies, the financial community, and the public on related matters, and communicates such policy to the Congress through the Office of the Assistant Secretary (Legislative Affairs).
(e) Coordinates initiatives regarding domestic-and international cooperation on money laundering and currency reporting and serves as principal staff for the Assistant Secretary (Enforcement) on matters relating to other Federal, State, and local and foreign governmental agencies on these issues.
(f) Reviews or initiates recommendations relating to assessment or mitigation of civil penalties under the Bank Secrecy Act or seizures in excess of $500,000 based on violations of the Bank Secrecy Act.
(g) Advises and makes recommendations on matters relating to domestic and international money laundering, and on issues affecting the enforcement of the Bank Secrecy Act. Evaluates FinCEN recommendations on these matters as well as possible uses of special currency reporting requirements under 31 U.S.C. 5326.
(2) The Office of Law Enforcement is responsible for the following functions.
(a) Serves as the principal policy office for the Assistant Secretary (Enforcement) on all matters concerning general law enforcement policy for the Treasury enforcement bureaus.
(b) Coordinates and monitors a wide variety of special emphasis and high priority law enforcement issues that relate to the activities of the BATF, USCS, FLETC, USSS, and IRS.
(c) Ensures Department of the Treasury coordination with the Office of National Drug Control Policy, Department of Justice, Department of Defense, Department of State, Department of Transportation, and the Federal Intelligence Community on matters pertaining to drug law enforcement policy, and communicates such policy to the Congress through the Office of the Assistant Secretary (Legislative Affairs).
(d) Serves as the principal liaison for the Office of the Assistant Secretary (Enforcement) with State, local, and other federal law enforcement agencies concerning law enforcement policy matters.
(e) Coordinates, develops and monitors the implementation of law enforcement policy directives pertaining to the enforcement activities of Treasury law enforcement bureaus.
(3) The Executive Office for Asset Forfeiture is responsible for the following functions.
(a) Establishing a Treasury Forfeiture Fund Program ("Program"), by: (1) developing and implementing an overall plan with respect to seizure and forfeiture policy as. established by the Assistant Secretary (Enforcement) and the Deputy Assistant Secretary (Law Enforcement) for the Treasury Department and its law enforcement organizations; (2) issuing guidelines and procedures to be followed by the Treasury Department and its law enforcement organizations in the implementation of the Program's seizure and forfeiture policy; (3) entering into agreements and undertaking program initiatives to implement seizure and forfeiture policy; and (4) coordinating seizure and forfeiture programs with the Department of Justice.
(b) Making all determinations regarding distributions from the Fund, including: (1) the amounts to be distributed and the purposes for which distributed amounts may be used by any Treasury law enforcement organization, the Coast Guard, the Departmental Offices, the Department of Justice, State and local organizations, and any other entity; and (2) authorizing obligations and expenditures within the budgetary resources available to the Fund.
(c) Implementing all policy decisions established by the Assistant Secretary (Enforcement) and Deputy Assistant Secretary (Law Enforcement) in connection with the detention, inventory, security, maintenance, advertisement, disposal or other management-related tasks relating to assets seized or forfeited, including: (1) developing and implementing automated systems to track assets from seizure to disposition; (2) operating and managing programs designed to handle seized and forfeited assets for disposition, including, but not limited to, the transportation, custody, and sale or disposition of such assets; and (3) entering into and administering any contract entered into by the Executive Office for Asset Forfeiture or its agent for the management of seized and forfeited assets.
(d) Planning and developing budgets, including the identification and projection of those expenses to be paid from the Fund.
(e) Maintaining a system of internal controls for the Fund.
(f) Formulating, developing and implementing programs for the internal controls concerning the assets, proceeds and accounts of the Program and the Fund, including, without limitation, determining and reviewing the obligations incurred and the expenditures made from the Fund, evaluating the performance of the Program and the Fund, overseeing inventories and audits, accounting for assets of the Fund and developing systems for the management of such assets, preparing management reports, tracking reconciliation of sales and receipts, and monitoring financial management reports.
(g) Monitoring funds distributed to the Treasury law enforcement agencies and others to ensure that funds are being used for their intended purpose.
(h) Providing information requested by the Assistant Secretary (Management)/Chief Financial Officer (CFO) with respect to: (1) estimates for appropriations or other budget authority, requests for apportionments, and any other submissions on budgetary matters to the Office of Management and Budget (OMB) or Congress; and (2) preparing and submitting to the Assistant Secretary (Management)/CFO for concurrence, an annual financial management plan for the Fund.
(i) Submitting to the Assistant Secretary (Management)/CFO for concurrence the procedures developed for operation of the Fund that constitute controls of funds or directly affect financial management; provided, however, that the decision with respect to the amounts and the purposes for which such amounts are to be disbursed from the Fund remain within the sole discretion of the Executive Office for Asset Forfeiture.
5. THE DEPUTY ASSISTANT SECRETARY (REGULATORY, TARIFF AND TRADE ENFORCEMENT) acts, as assigned, for the Assistant Secretary in the Assistant Secretary's absence and is responsible for the following functions.
a. Provides policy guidance and review in establishing regulatory policies with respect to the USCS and BATF.
b. Serves as principal support to the Assistant Secretary (Enforcement) in all tariff and trade enforcement matters, including proposed legislation, regulatory changes or other policy proposals on tariff and trade matters.
c. Advises the Assistant Secretary (Enforcement) on matters involving the Departmental level oversight and supervision of the USCS, USSS, BATF, and FLETC.
d. Supervises the following organizations: Office of Trade and Tariff Affairs, Office of Foreign Assets Control and Office of Operations.
(1) The Office of Trade and Tariff Affairs is responsible for the following functions.
(a) Reviews and recommends actions on non-criminal cases and regulatory proposals from the USCS and BATF.
(b) Develops customs and tariff policy in areas including but not limited to Customs classification and valuation, quota programs, and imposition of penalties.
(c) Advises and assists in developing regulatory policy with respect to alcoholic beverages and the industries that produce those products.
(2) The Office of Foreign Assets Control (FAC), is responsible for implementing and administering the Department's responsibilities under United States economic sanctions programs with respect to foreign nations. These sanctions programs arise primarily under the Trading with the Enemy Act and the International Emergency Economic Powers Act. Specifically, the office is responsible for the following functions.
(a) Prepares executive orders and other documents concerning the imposition and administration of economic sanctions for the signature of the President.
(b) Conducts negotiations with foreign governments regarding the administration and enforcement of U.S. sanctions.
(c) Issues regulations, subject to the approval of the Assistant Secretary and often in consultation with other Federal agencies, which reflect commercial and financial transactions of persons subject to U.S. jurisdiction with respect to tangible or intangible property in which foreign governments or their nationals have an interest.
(d) Monitors the holding of assets blocked under economic sanctions programs.
(e) Conducts appropriate licensing required to implement policy concerning transactions with respect to blocked assets and transactions otherwise prohibited by economic sanctions regulations.
(f) Coordinates civil and criminal enforcement matters, monitors key investigations and as necessary conducts investigations of FAC violations.
(3) The Office of Operations is responsible for the following functions.
(a) Serves as principal support in providing departmental oversight and supervision of the enforcement bureaus and provides advice on a broad range of operational matters.
(b) Operates a management information system which monitors key operations and activities in the enforcement bureaus, identifies problem areas, and tracks corrective actions.
(c) Provides assistance and support to the enforcement bureaus and to the program offices of the Assistant Secretary (Enforcement) to ensure achievement of the goals/objectives of the Assistant Secretary (Enforcement).
6. THE DIRECTOR FINANCIAL CRIMES ENFORCEMENT NETWORK (FinCEN) reports directly to the Assistant Secretary (Enforcement) and operates under guidelines and policies established by the Assistant Secretary (Enforcement). Staff assistance and advice on day-to-day matters and policy issues shall be provided to FinCEN by the Deputy Assistant Secretary (Law Enforcement) and staff. Close coordination between the FinCEN staff and the Deputy Assistant Secretary (Law Enforcement) and staff is required. The Director of FinCEN is responsible for the following functions.
a. Directs a core staff composed of Departmental Offices employees and other personnel detailed to FinCEN, including experts from USCS, IRS, other Federal law enforcement bureaus, financial institution regulatory agencies, and private industry to centralize and combine expertise on both the national and international financial systems and the detection and prevention of money laundering and other financial crimes.
b. Advises and makes recommendations on matters relating to financial intelligence and other financial criminal activity to the Assistant Secretary (Enforcement).
c. Maintains a governmentwide data access service, with access, in accordance with applicable legal requirements, to:
(1) information collected by Treasury, including report information filed under the Bank Secrecy Act and section 60501 of the Internal Revenue Code;
(2) information regarding national and international currency flows;
(3) other records and data maintained by other Federal, State, local, and foreign agencies, including financial and other records developed in specific cases; and
(4) other privately and publicly available information.
d. Analyzes and disseminates the available data in accordance with applicable legal requirements, policies and guidelines and policies established by the Assistant Secretary (Enforcement) to:
(1) identify possible criminal targets to appropriate Federal, State, local, and foreign law enforcement agencies;
(2) support ongoing criminal financial investigations and prosecutions and related proceedings, including civil and criminal tax and forfeiture proceedings;
(3) identify possible instances of noncompliance with the Bank Secrecy Act to Federal agencies with delegated responsibility for Bank Secrecy Act compliance;
(4) evaluate and recommend possible uses of special currency reporting under 31 U.S.C. 5326; and
(5) determine emerging trends and methods in money laundering and other financial crimes.
e. Establishes a financial crimes communications center to furnish law enforcement authorities with intelligence information related to ongoing investigations and undercover operations.
f. Furnishes research, analytical, and informational services to financial institutions, financial institution regulators, and Federal, State, local, and foreign law enforcement authorities in accordance with policies and guidelines established by the Assistant Secretary (Enforcement) in the interest of detection, prevention, and prosecution of money laundering and other financial crimes.
7. CANCELLATION. Treasury Directive 27-03, "Organization and Functions of the Office of the Assistant Secretary (Enforcement)," dated May 30, 1990, is superseded."
8. AUTHORITY. Treasury Order 102-14, "Delegation of Authority With Respect to the Treasury Forfeiture Fund Act of 1992," dated January 19, 1993.
9. OFFICE OF PRIMARY INTEREST. Office of the Assistant Secretary (Enforcement).
Peter K. Nunez
Assistant Secretary (Enforcement)