Financial Crimes Enforcement Network 

Mission Statement 

To safeguard the nation’s financial system from the abuses of financial crime, including 

terrorist financing, money laundering, and other illicit activity. 

Program Summary by Appropriations Account Dollars in Thousands 

Appropriation FY 2006 FY 2007 FY 2007 FY 2008

Salaries and Expenses Enacted

President's 

Budget CR-rate Request

$ from 

CR-rate

% from

CR-rate

BSA Administration and 

Analysis $64,458 $81,143 $62,132 $76,889 $14,757 23.75%

Regulatory Support 

Programs 8,436 8,651 8,436 8,955 519 6.15%

Total Appropriated Resources $72,894 $89,794 $70,568 $85,844 $15,276 21.65%

FY 2008 Priorities 

• Improve project management practices throughout the organization for information 

technology and non-information technology planning; and 

• Strengthen recovery capability for mission-critical information technology systems 

and emergency operation capabilities in the event of a sustained outage or other 

emergency. 
Table of Contents 

Section 1 – Purpose ........................................................................................................... 2

1A – Description of Bureau Vision and Priorities.......................................................... 2 

1B – Program History and Future Outlook..................................................................... 2 

Section 2 – Budget Adjustments and Appropriation Language................................... 7

2.1 – Budget Adjustments Table..................................................................................... 7 

2A – Budget Increases and Decreases Description......................................................... 7 

2.2 – Operating Levels Table.......................................................................................... 9 

2B – Appropriation Language ...................................................................................... 10 

2C – Legislative Proposals............................................................................................ 10 

Section 3 – Budget and Performance Plan ................................................................... 11

3.1 – Appropriation Detail Table.................................................................................. 11 

3A – BSA Administration and Analysis..................................................................... 11 

3.2.1 – BSA Administration and Analysis Budget and Performance Plan.................. 13 

3B – Regulatory Support Programs............................................................................. 14 

3.2.2 – Regulatory Support Programs Budget and Performance Plan.......................... 15 

Section 4 – Supporting Materials.................................................................................. 16

4.1 – Human Resources Table ...................................................................................... 16 

4A – Human Capital Strategy Description ................................................................... 16 

4.2 – Summary of IT Resources Table ......................................................................... 19 

4B – Information Technology Strategy ........................................................................ 20 

4.3 – PART Evaluation Table....................................................................................... 21 

FinCEN - 1 
Section 1 – Purpose

1A – Description of Bureau Vision and Priorities 

The Financial Crimes Enforcement Network (FinCEN), a bureau within Treasury’s 

Office of Terrorism and Financial Intelligence, is responsible for administering the Bank 

Secrecy Act (BSA). The BSA requires financial instituions to file reports on certain 

types of financial activity and to establish appropriate internal controls to guard against 

money laundering, terrorist financing, and other types of illicit finance. FinCEN fulfills 

its responsibility as BSA administrator by supporting law enforcement, intelligence, and 

regulatory agencies through sharing and analysis of financial intelligence; building global 

cooperation with counterpart financial intelligence units; and networking people, ideas, 

and information. 

 

FinCEN’s administration of the BSA has helped create transparency in the financial 

system, thus strengthening the nation’s defenses against criminals that launder illicit 

proceeds in the United States. FinCEN’s use of powerful tools, such as the BSA and the 

USA PATRIOT Act, help accomplish its mission of protecting the financial system from

abuse. 

Finally, FinCEN’s vision is to become an adaptive, responsive organization through 

efficient and effective collaboration with applicable individuals, entities, and agencies. 

FinCEN’s priorities are linked to the following strategic goals: 

• Protecting the financial system through effective administration of the BSA; 

• Combating terrorism, money laundering, and other financial crime through analysis of 

BSA data and other relevant information; 

• Intensifying international anti-money laundering collaboration through the global 

network of financial intelligence units; and 

• Facilitating regulatory compliance, data management, and information sharing through 

E-Government. 

1B – Program History and Future Outlook 

To fulfill its mission, goals and priorities, FinCEN: (1) issues, interprets, and enforces 

compliance with regulations implementing the BSA, including provisions of Title III of

the USA PATRIOT Act; (2) supports and oversees compliance examination functions 

delegated to other federal regulators; (3) manages the collection, processing, storage, and 

dissemination of BSA data; (4) maintains a government-wide access service to the BSA 

data and networks users with overlapping interests; (5) in coordination with Treasury’s 

Office of Intelligence and Analysis, conducts analysis in support of policy makers, law 

enforcement, regulatory and intelligence agencies, and the financial industry; and (6) 

coordinates with and collaborates on anti-terrorism and anti-money laundering initiatives 

with domestic law enforcement and intelligence agencies, and with the foreign financial 

intelligence unit counterparts. 

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FinCEN works closely with federal and certain state regulatory agencies that examine 

financial institutions for BSA compliance to ensure consistency across regulated 

industries in the examination for compliance and with the application of BSA 

requirements. Through these efforts and direct outreach, FinCEN also assists regulated 

financial institutions in establishing risk-based anti-money laundering programs with 

appropriate policies, procedures, and internal controls, maintaining certain records, and 

filing reports on certain types of financial activity, as required under the BSA. As 

appropriate, FinCEN investigates alleged violations, and issues letters of caution or 

warning. When required, FinCEN imposes civil money penalties for egregious BSA 

violations. 

FinCEN supports law enforcement agencies, intelligence agencies, and foreign Financial 

Intelligence Units (FIU) investigating financial crimes by providing specialized and 

unique analysis of the BSA data along with data from law enforcement, intelligence, and 

commercial sources. FinCEN’s analyses support regulatory and policy decisions, and are 

used to develop threat assessments, industry reports, and technical guides describing 

financial transaction mechanisms. The analysis links data collected under the BSA with 

other data to provide support for regulatory and policy decisions, to support law 

enforcement agencies investigating financial crimes, and to support intelligence agencies. 

FinCEN proactively identifies individuals and networks with suspicious financial activity 

and refers that information to appropriate law enforcement agencies. 

In the global arena, FinCEN supports international initiatives to educate other 

jurisdictions about the BSA regulatory regime and to establish international anti-money 

laundering regulatory standards and norms. The bureau also seeks to expand and 

organize the exchange of financial information; improve the expertise and capabilities of

personnel in money laundering and terrorist financing areas; and foster better and more 

secure communication among FIUs through technology. 

As administrator of the BSA, FinCEN must ensure the effective collection, management, 

and dissemination of the highly sensitive confidential information collected under the 

Act. FinCEN provides direct access to BSA data to authorized law enforcement, 

regulatory, and intelligence agencies. FinCEN will continue to integrate and modernize 

the various components of the BSA data collection and sharing systems. These efforts 

include upgrading the BSA E-Filing system to provide a more robust collection function, 

improving the quality of BSA data by preventing the omission of critical information, 

validating the information collected, and upgrading the BSA analytical tools used by 

FinCEN analysts. 

FinCEN’s regulatory efforts focus on meeting the expectations of both the regulated 

communities and those who examine for BSA compliance, and better protecting the 

financial system through effective administration of the BSA. Specific FY 2006 

accomplishments in the regulatory area were: 

• Enhanced outreach to regulated industries through increased written and oral guidance 

concerning BSA requirements; 

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• Issued a final rule requiring financial institutions to implement appropriate, specific, 

and, where necessary, enhanced due diligence policies, procedures, and controls 

regarding correspondent accounts established or maintained for certain foreign 

financial institutions and appropriate, specific due diligence policies, procedures, and 

controls and, where necessary, enhanced scrutiny regarding private banking accounts 

established or maintained for non-U.S. persons, in accordance with Section 312 of the 

USA PATRIOT Act; 

• Issued a final rule requiring mutual funds and certain insurance companies to report 

suspicious activity; 

• Proposed a rule imposing special measures against foreign financial institutions 

determined to be of primary money laundering concern, in accordance with Section 

311 of the USA PATRIOT Act; 

• Signed additional information sharing agreements for the exchange of BSA 

examination information with state banking and credit union authorities; and 

• Issued major enforcement actions for egregious BSA violations. 

FinCEN will expand regulatory efforts in FY 2007/FY 2008 to include: 

• Implementing regulatory amendments and other modifications relating to money 

services businesses, subsequent to a review of the existing regulatory framework and 

current issues; 

• Continuing to draft an anti-money laundering program rule for loan and finance 

companies; 

• Finalizing anti-money laundering program rules for investment advisers, commodity 

trading advisors, commodity pool operators, and unregistered investment companies; 

• Continuing a review of the company service provider/corporate agent industry to 

determine the appropriateness of issuing guidance/advisories and/or an anti-money 

laundering program requirement for that industry; 

• Increasing coordination with other agencies to identify and educate unregistered 

and/or unlicensed money services businesses; 

• Increasing efforts to provide regulatory partners with analytical products and 

information to identify institutions with potential compliance problems, thereby 

enhancing consistency across examinations; 

• Continuing to issue major enforcement actions, as necessary, for systemic noncompliance with BSA requirements, including joint or concurrent actions with federal 

and state regulatory agencies; and 

• Issuing one or more notices of proposed rulemaking to further define stored value and 

to require certain participants to register, file suspicious activity reports and establish 

customer programs. 

FinCEN’s analytic efforts focus on assisting federal and state regulatory authorities in 

identifying vulnerabilities within the financial sector and the law enforcement community 

in detecting, deterring and investigating terrorism funding, money laundering and 

financial crime. Specific FY 2006 accomplishments in the analysis area were: 

• Enhanced support to law enforcement agencies by increasing advanced, specialized or 

unique analysis of BSA information and other records, and by providing training in 

FinCEN - 4 
advanced analytical tools to law enforcement agencies in support of terrorism and 

money laundering investigations; 

• Published analytical products covering patterns and trends in financial crimes that 

serve as a basis for policy decisions and strategic action to reduce the threat of 

financial crime. Also published a technical industry reference guide for law 

enforcement officials; 

• Completed collaborative analytic efforts with other organizations, including foreign 

financial intelligence units; 

• Published two editions of FinCEN’s SAR Activity Review-By the Numbers, a 

compilation of numerical data gathered from Suspicious Activity Reports (SARs) filed 

since 1996 and used by financial institutions, law enforcement, regulators and other 

readers; 

• Completed assessment of potential money laundering vulnerabilities associated with 

limited liability companies; 

• Continued to support candidate FIUs in the Middle East, Asia and Africa for 

admission to the Egmont Group, conducted on-site assessments of potential new 

members, and provided technical assistance to a number of key countries with 

emerging FIUs; 

• Supported Treasury initiatives by identifying jurisdictions or institutions as candidates 

for imposition of special measures under section 311 of the USA PATRIOT Act; and 

• Participated in the Financial Action Task Force (FATF) and the global network of 

FATF-style regional bodies. This included coordinating development of a FATF 

multilateral database of money laundering and terrorist financing cases, for use in 

researching financial crime trends and indicators. 

FinCEN will continue to develop and enhance its analytical and technical capabilities in 

FY 2007/2008, especially in the area of advanced or unique BSA analysis. These efforts 

include: 

• Improving the pro-active evaluation, analysis and referral of potential terrorismrelated Suspicious Activity Reports (SAR) to the law enforcement and intelligence 

communities; 

• Improving capabilities and methodologies for geographic and industry threat 

assessments and for financial analysis;

• Producing an annual threat/targeting assessment of the Southwest Border;

• Developing better customer access to FinCEN’s strategic products through its secure 

and public web sites;

• Increasing the number of analyst exchanges with partner FIUs;

• Increasing outreach to U.S. law enforcement and regulatory agencies to educate them

on the benefits provided by the global network of FIUs in terms of investigative and 

intelligence resources and information sharing; 

• Improving the expertise and capabilities of personnel in money laundering and 

terrorist financing areas; and 

• Fostering more secure communication among FIUs through the application of 

technology. 

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FinCEN’s BSA data collection and sharing efforts focus on improving its overall 

information infrastructure and enhancing its IT management capabilities. Specific FY 

2006 accomplishments related to the collection and sharing of BSA data were: 

• Executed memoranda of understanding with 34 law enforcement and intelligence 

agencies for access to the BSA Data; 

• Modernized the Secure Outreach access system, 314(a) system, and 90 percent of the 

Egmont Secure Web System upgrade; 

• Increased the percentage of BSA reports filed electronically by 19 percent by 

providing outreach and technical assistance to the largest filers; 

• Established a monitoring program to improve the quality of SAR data, by identifying 

the critical fields that are most often left blank; and 

• Conducted a feasibility study regarding a cross-border wire transfer system, as 

mandated by the Intelligence Reform and Terrorism Prevention Act of 2004. 

FinCEN will accelerate data collection and sharing efforts in FY 2007/FY2008 to 

include: 

• Creating an action plan to improve data management and analysis as a follow-on to 

the BSA Direct retrieval and sharing component project assessment; 

• Upgrading various technology components to meet the expanded user population, 

increasing electronic filing alternatives, and enhancing the ability to integrate 

additional text/data mining tools; 

• Conducting a cost-benefit analysis with the financial services industry and law 

enforcement to determine the benefits and costs to all parties affected by the potential 

regulatory requirement of the cross-border electronic funds system, and, if a final 

decision is made by Treasury to proceed, beginning development of the technological 

systems required to receive, securely store, analyze and disseminate these data; 

• Establish and maintain a disaster recovery capability for critical systems to minimize 

or eliminate system downtime in the event of the loss of access or system use at 

FinCEN’s primary location; and 

• Enhance project management capability and oversight of information technology 

projects by expanding Capital Investment Planning, Enterprise Architecture, 

Configuration Management and Change Management controls. 

FinCEN - 6 
Section 2 – Budget Adjustments and Appropriation Language 

2.1 – Budget Adjustments Table 

Dollars in Thousands 

Appropriation: Appropriation Name FTE Amount

FY 2006 Appropriation (P.L. 109-115) 330 $73,630

Rescission (P.L. 109-148) 0 $(736)

FY 2006 Enacted 330 $72,894

FY 2007 President's Budget 352 $89,794

CR-rate Adjustment (18) (19,226)

FY 2007 CR-rate 334 $70,568

Changes to Base: 

Technical Adjustment to FY 2007 Base due to CR:

Annualization of the FY 2006 Initiatives 18 2,498 

FY 2007 Initiatives 3,373 

FY 2007 MCL 3,395 

Maintaining Current Levels (MCLs):

Non-Pay Inflation Adjustment 1,335 

Pay Annualization 203 

Pay Inflation Adjustment 1,239 

Initiative Annualization:

Annualization of FY 2007 Initiative: BSA E-Filing 740 

Total FY 2008 Base 352 $83,351

Program Increases:

Disaster Recovery Capability 743 

Enhance Project Management Capability 4 1,750 

Subtotal FY 2008 Program Changes 4 2,493

Total FY 2008 Request 356 $85,844

2A – Budget Increases and Decreases Description 

Adjustments ..................................................................................-$19,226,000 / -18 FTE 

CR-rate Adjustment -$19,226,000 / -18 FTE Adjustment from the FY 2007 President's Budget to 

reach the FY 2007 Continuing Resolution annualized rate (CR-rate). 

Technical Adjustment to FY 2007 Base due to CR ...................+$9,266,000 / +18 FTE 

Annualization of the FY 2006 Initiatives +$2,498,000 / +18 FTE This provides additional 

funding to annualize the staffing initiative approved in FY 2006. The increased staff enables the 

bureau to better assess and respond to the challenges posed by terrorist financiers and operatives, 

money launderers, and other perpetrators of financial crime against domestic and global financial 

systems. 

FY 2007 Initiatives +$3,373,000 / +0 FTE Restores requested funding for FY 2007 increases for 

BSA E-Filing ($873,000) and the Cross-Border Wire Transfer ($2,500,000). The BSA E-Filing 

funds will enable FinCEN to implement enhancements to improve operations of the Bank 

Secrecy Act (BSA) collection processes, including reference number assignment, error 

notification or other correspondence, and improved editing of certain types of filing errors. The 

requested Cross-Border Wire Transfer System funds will enable FinCEN to begin the design 

and, if the Secretary gives final approval, the initial development of the technological systems 

required to receive, securely store, analyze, and disseminate reports of cross-border electronic 

funds transfers. This is in accordance with the Intelligence Reform Act of 2004, Section 6302. 

FinCEN - 7 
FY 2007 MCL +$3,395,000 / +0 FTE This provides restoration of funding required for the FY 

2007 costs of the FY 2006 pay increase of $229,000; the proposed January 2007 pay raise and 

other labor related benefits of $635,000; non-labor related items such as contracts, travel, 

supplies, equipments, and GSA rent adjustments of $1,065,000, and deferred replacement of 

information technology equipment and other planned contracts of $1,466,000. 

Maintaining Current Levels (MCLs) ...........................................+$2,777,000 / +0 FTE 

Non-Pay Inflation Adjustment +$1,335,000 / +0 FTE Funds are requested for non-labor related 

items such as contracts, travel, supplies, equipment and GSA rent adjustments. 

Pay Annualization +$203,000 / +0 FTE Funds are requested for the FY 2008 cost of the January 

2007 pay increase. 

Pay Inflation Adjustment +$1,239,000 / +0 FTE Funds are requested for the proposed January 

2008 pay raise. 

Initiative Annualization ....................................................................+$740,000 / +0 FTE 

Annualization of FY 2007 Initiative: BSA E-Filing +$740,000 / +0 FTE This provides additional 

funding to annualize the remaining required modernization and service level increases that were 

included in the FY 2007 Budget Request. The BSA E-Filing program has experienced continued 

success in increasing the number of filers and electronic filings. To meet the future 90 percent 

E-filing target, FinCEN must increase funding to support the expected user population. For 

example, with every 10 percent increase in E-filing volumes, additional support staff is required. 

In addition, most filers require a test on the filing system prior to beginning live input, requiring 

additional contractor assistance. To improve the system, FinCEN will continue to expand 

options for single form filers, including the new pdf format option began in FY 2007. Finally, 

overall improvements are in the system network (which also goes with the implementation of 

IPV6) in terms of adding capacity, networking equipment upgrades, and backup capabilities. 

Program Increases .........................................................................+$2,493,000 / +4 FTE 

Disaster Recovery Capability +$743,000 / +0 FTE Funds are requested to provide ongoing site 

maintenance, telecommunications and system hosting for the critical information technology 

system disaster recovery site established in FY 2006/2007 through redirection of one-time prior 

year funding. By establishing this capability for critical system redundancy, FinCEN has 

reduced the system recovery time from six months to four hours and significantly reduced the 

risk of losing access to critical systems. The maintenance of the disaster recovery capability will 

allow FinCEN, in the event of a sustained outage or other emergency, to continue critical 

systems that access the BSA data through the Secure Outreach portal, provide 314a information 

sharing capability with financial institutions, allow Financial Intelligence Units to reply to 

requests for information, or continue to receiving new BSA reports through the BSA E-Filing 

system. 

Enhance Project Management Capability +$1,750,000 / +4 FTE The 2008 President’s Budget 

request includes additional resources to meet OMB, Treasury and GAO recognized requirements 

to improve FinCEN’s project management capability. A recent review of FinCEN’s programs 

has identified a need to strengthen project management practices throughout the organization, 

FinCEN - 8 
including both information technology and non-information technology projects. A portion of 

this initiative will fund IT program and support activities including capital planning, enterprise 

architecture, information security, and contractor technical assistance. FinCEN has traditionally 

performed many of these activities as a collateral duty with limited assistance from the Federal 

Funded Research and Development Centers (FFRDC) and private contractors. Another portion 

of this initiative will fund project management oversight to ensure successful planning and 

execution for all of FinCEN’s project management efforts. 

2.2 – Operating Levels Table 

Dollars in Thousands 

Appropriation Title: FMS Salaries & Expenses FY 2006 

Enacted

FY 2007 

President's 

Budget

CR-rate 

Adjustment

 FY 2007 

CR-rate

Proposed

Reprogramming

 FY 2007

Proposed

Operating

Level

 FY 2008 

Requested

Level 

FTE 330 352 (18) 334 334 338

Object Classification:

11.1 Full-Time Permanent Positions..................................... $27,310 $29,345 ($1,434) $27,911 $27,911 $30,790

11.1 Other than Full-Time Permanent Positions.............. 284 284 284 284 284

11.5 Other Personnel Compensation................................... 526 526 526 526 526

11.8 Special Personal Services Payments..................... 0 0 - - -

11.9 Personnel Compensation (Total)............................. 28,120 30,155 (1,434) 28,721 28,721 31,600

12.0 Personnel Benefits...................................................................... 7,156 7,789 (397) 7,392 7,392 8,433

13.0 Benefits to Former Personnel............................................... 0 0 - - -

21.0 Travel.................................................................................. 1,332 1,561 (681) 880 880 1,490

22.0 Transportation of Things........................................... 0 0 - - 

23.1 Rental Payments to GSA................................................ 4,800 4,968 4,968 4,968 5,117

23.2 Rent Payments to Others............................................... 43 55 55 55 55

23.3 Communications, Utilities, & Misc................................................ 1,070 995 995 995 1,273

24.0 Printing and Reproduction.......................................................... 250 250 250 250 400

25.1 Advisory & Assistance Services................................................... 522 750 (47) 703 703 1,815

25.2 Other Services.................................................................... 9,279 19,642 (11,548) 8,094 8,094 11,758

25.3 Purchase of Goods/Serv. from Govt. Accts...... 9,454 9,892 (623) 9,269 9,269 12,706

25.4 Operation & Maintenance of Facilities................... 960 960 (60) 900 900 960

25.5 Research & Development Contracts................................ 0 0 - - -

25.6 Medical Care............................................................................. 120 128 (8) 120 120 145

25.7 Operation & Maintenance of Equipment...................... 6,008 6,150 (387) 5,763 5,763 4,990

25.8 Subsistence & Support of Persons.................................... 0 0 - - -

26.0 Supplies and Materials.................................................... 369 395 (20) 375 375 409

31.0 Equipment.......................................................................... 3,411 6,104 (4,021) 2,083 2,083 4,693

32.0 Lands and Structures................................................... 0 0 - - -

33.0 Investments & Loans.................................................... 0 0 - - -

41.0 Grants, Subsidies........................................................... 0 0 - - -

42.0 Insurance Claims & Indemn................................................. 0 0 - - -

43.0 Interest and Dividends...................................................... 0 0 - - -

44.0 Refunds.............................................................................. 0 0 - - -

Total Budget Authority................................................ $72,894 $89,794 ($19,226) $70,568 $0 $70,568 $85,844

 -

Budget Activities:

BSA Administration and Analysis................................... $64,458 $81,143 (19,011) 62,132 62,132 76,889

Regulatory Programs................................... 8,436 8,651 (215) 8,436 8,436 8,955

Total Budget Authority................................................ $72,894 $89,794 ($19,226) $70,568 $0 $70,568 $85,844

FinCEN - 9 
2B – Appropriation Language 

Appropriations Language Explanation of Changes

DEPARTMENT OF THE TREASURY 

FINANCIAL CRIMES ENFORCEMENT NETWORK 

Federal Funds 

SALARIES AND EXPENSES: 

For necessary expenses of the Financial Crimes 

Enforcement Network, including hire of passenger motor 

vehicles; travel and training expenses of non-Federal and 

foreign government personnel to attend meetings and 

training concerned with domestic and foreign financial 

intelligence activities, law enforcement, and financial 

regulation; not to exceed $14,000 for official reception and 

representation expenses; and for assistance to Federal law 

enforcement agencies, with or without reimbursement, 

$85,844,000 of which not to exceed $16,340,000 shall 

remain available until September 30, 2010; and of which 

$8,955,000 shall remain available until September 30, 

2009: Provided, that funds appropriated in this account 

may be used to procure personal services contracts. 

 

 

 

2C – Legislative Proposals 

FinCEN has no legislative proposals for FY 2008. 

FinCEN - 10 
Section 3 – Budget and Performance Plan

3.1 – Appropriation Detail Table 

Dollars in Thousands 

FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT FTE AMOUNT

New Appropriated Resources:

BSA Administration and Analysis 330 $64,458 330 $64,458 352 $81,143 334 $62,132 356 $76,889 6.59% 23.75%

Regulatory Support Programs 0 8,436 8,436 0 $8,651 0 $8,436 0 8,955 6.15%

Subtotal New Appropriated Resources 330 $72,894 330 $72,894 352 $89,794 334 $70,568 356 $85,844 6.59% 21.65%

Other Resources:

Recoveries

Offsetting collections - reimbursables 1 $4,473 1 $4,473 1 $1,541 1 $1,541 1 $1,541 0.00%

 Available 50% Carry-over 260 260 0 0 0

Available multi-year/no-year funds 7,028 7,028 9,353 9,353 7,028 -24.86%

Transfers In/Out

Subtotal Other Resources 1 $11,761 1 $11,761 1 $10,894 1 $10,894 1 $8,569

Total Resources Available for Obligation 331 $84,655 331 $84,655 353 $100,688 335 $81,462 357 $94,413 6.57% 15.90%

FY 2006 FY 2008

Obligations Request

FY 2007

Enacted President's Budget CR-Rate to FY 2008

FY 2007

Resources Available for Obligation

FY 2006 FY 2007

% Change

3A – BSA Administration and Analysis ($76,889,000 from direct appropriations and 

$1,541,000 from reimbursable programs): This activity comprises FinCEN’s efforts to 

administer the Bank Secrecy Act (BSA), such as promulgating regulations, providing outreach 

and guidance to the regulated industries, initiating regulatory enforcement actions, providing 

oversight of the compliance with the Bank Secrecy Act, and, with the Internal Revenue Service, 

managing the information filed by the regulated industries. Internationally, FinCEN promotes 

the development of anti-money laundering regimes through training and technical assistance. 

This activity also incorporates efforts to support large-scale, complex law enforcement 

investigations involving terrorist financing, money laundering, and other financial crimes. It also 

includes facilitating the exchange of investigative information with foreign jurisdictions, and 

identifying foreign and domestic money laundering and terrorist financing trends, patterns, and 

techniques; and liaison with and support of intelligence initiatives within the intelligence 

community and within Treasury. 

In the regulatory area, FinCEN will be able to achieve the following FY 2008 quantifiable results 

and accomplishments with the requested funds: 

• Process enforcement matters within the target of one year; 

• Create performance targets designed to show progress based on a survey of Regulatory 

Resource Center customers rating guidance received as understandable; 

• Continue to work toward developing measures of the impact of program activities on 

preventing the misuse of the financial system by those engaged in illicit activities; and 

• Increase the number of information sharing agreements with federal and state regulatory 

agencies to 52. 

In the analytical and global areas, FinCEN will be able to achieve the following FY 2008 

quantifiable results and accomplishments with the requested funds: 

• Increase the percentage of customers finding FinCEN’s analytic reports highly valuable to 79 

percent; 

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• Evaluate the feasibility of a better assessment of the law enforcement impact of FinCEN's

products; 

• Increase participation in conferences and seminars to provide enhanced technical assistance 

and training to financial intelligence units and foreign delegations; and 

• Connect 98 percent of the countries admitted to Egmont to the Egmont Secure Web within 

one year of admission. 

FinCEN will achieve the following FY 2008 quantifiable results and accomplishments for 

collecting and sharing BSA data with the requested funds: 

• Increase e-filing towards the long-term target of 90 percent; 

• Reduce the cost per BSA form E-filed to $0.15; 

• Increase the number of top filers who file reports electronically towards the long-term goal of 

650; and 

• Increase the number of users accessing BSA data towards the long-term goal 10,000. 

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3.2.1 – BSA Administration and Analysis Budget and Performance Plan 

Dollars in Thousands 

BSA Administration and Analysis 

Budget Activity

Includes Strategic Objective F3A

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $49,127 $63,635 $64,458 $81,143 $76,889 

 Other Resources 3,341 1,541 4,473 1,541 1,541 

Total Operating Level $52,468 $65,176 $68,931 $82,684 $78,430

Human Resources

 Appropriated FTE 277 309 330 352 356 

 Other FTE 1 1 1 1 1 

Total FTE (direct and reimbursable) 278 310 331 353 357

BSA Administration and Analysis

Budget Activity

Measure FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Target 1.2 1.1 1 1 1

Actual 1 1.3 1

Met Yes No Yes

Target Baseline 45 50

Actual 41 48

Met Yes Yes

Target Baseline Baseline Baseline* TBD

Actual 7.90% 8%

Met

Target Baseline 78% 79%

Actual 77%

Met Yes

Target Baseline 90% 90%

Actual 94%

Met Yes

Target Baseline 90% 90%

Actual 92%

Met Yes

*FinCEN requires three years of data to establish a baseline for this performance measure to ensure that at least one

examination is included for all financial institutions covered by BSA regulations.

Key: Oe - Outcome Measure, E - Efficiency Measure, Ot - Output/Workload Measure

Includes Strategic Objective F3A

Average time to process enforcement 

matters (in Years) (E)

Percentage of BSA compliance 

examinations conducted on depository 

institutions that indicate a systemic

compliance failure with their BSA program.

(Ot)

Percentage of customers finding FinCEN’s

analytic reports highly valuable (Oe)

Percentage of Regulatory Resource Center

customers rating the guidance received as

understandable (Oe)

Percentage of customers satisfied with the

BSA Direct E-Filing component (Oe)

Number of federal and state regulatory

agencies with which FinCEN has concluded 

memoranda of understanding information 

sharing agreements (Ot)

52

Description of Performance. 

FinCEN conducted a baseline survey of the Regulatory Resource Center customers rating the 

regulatory guidance received as understandable and established an FY 2006 baseline of 94 

percent. Providing understandable guidance to financial institutions is critical to establishing 

programs that comply with the BSA. 

In FY 2007, FinCEN will continue to work toward developing improved outcome measures to 

address the impact of program activities on preventing the misuse of the financial system by 

those engaged in illicit activities. As part of the 2006 Program Assessment Rating Tool (PART) 

process, FinCEN established a measure for the percentage of bank examinations conducted by 

FinCEN - 13 
the Federal Banking Agencies indicating a systemic failure of the anti-money laundering 

program rule, with a baseline to be established in FY 2007. FinCEN will work toward 

effectively interpreting and utilizing the measure in its efforts to monitor, understand, and 

improve aspects of Bank Secrecy Act compliance. In addition, FinCEN will explore the 

feasibility of developing useful measures for other industries, such as money services businesses. 

FinCEN works closely with its regulatory partners to take enforcement action against institutions 

that systemically and egregiously violate the provisions of the BSA, including through 

imposition of civil money penalties in appropriate matters. Timely enforcement action 

communicates urgency to financial institutions, and is paramount to deterring non-compliance. 

In FY 2006, FinCEN met its target measure of 1.0 years average time to process cases. The 

year-to-date actual result of 1.0 years reflects effective use of resources. 

FinCEN supports law enforcement and its regulatory industry partners by facilitating information 

sharing and providing analyses of BSA data. In FY 2006, a survey of FinCEN’s customers 

found that 69 percent rated FinCEN’s analytic products as valuable, which did not meet 

FinCEN’s 75 percent target. FinCEN’s original target of 75 percent respondents rating their 

analytic product as valuable was established in FY 2005, and was based on one year of data. 

FinCEN has revised this measure as a result of the FY 2006 PART process to more accurately 

target its disparate audiences as well as its different products. The reformulated measure more 

closely ties to how BSA data is used by law enforcement, regulators and international partners to 

identify, stop, and prevent abuse of the financial system. 

In FY 2006 FinCEN had surpassed its target of 30 days by transmitting information to Financial 

Institution Hotline Tip SARs within 19 days. This measure tracks the median time taken from

date of receipt of Financial Institution Hotline tip SAR to transmittal of the report to law 

enforcement or the intelligence community. 

FinCEN conducted a baseline survey of the users of the BSA Direct E-Filing system to 

determine the overall satisfaction level and to identify where improvements are needed. The FY 

2006 results indicate that 92 percent of respondents are satisfied with the BSA Direct E-Filing 

system. 

3B – Regulatory Support Programs ($8,955,000 from direct appropriations): This activity 

supports implementation, strengthening and clarification of the anti-money laundering program, 

recordkeeping, and reporting requirements of the BSA for financial institutions subject to those 

requirements. FinCEN will also continue efforts with the Internal Revenue Service, especially 

related to the money services business industry, to ensure compliance, respond to public 

inquiries, distribute forms and publications, and support collection and maintenance of the BSA 

data. These resources support Internal Revenue Service BSA compliance activities for nonbanking financial institutions, especially related to the money services business industry. 

FinCEN - 14 
3.2.2 – Regulatory Support Programs Budget and Performance Plan 

Dollars in Thousands 

Regulatory Support Programs Budget 

Activity

Includes Strategic Objective F3A

FY 2004 FY 2005 FY 2006 FY 2007 FY 2008

Resource Level Enacted Enacted Enacted President's 

Budget

Request

Financial Resources

 Appropriated Resources $8,104 $8,287 $8,436 $8,651 $8,955 

 Other Resources 0 0 0 0 0 

Total Operating Level $8,104 $8,287 $8,436 $8,651 $8,955

Human Resources

 Appropriated FTE 0 0 0 0 0 

 Other FTE 0 0 0 0 0 

Total FTE (direct and reimbursable) 0 0 0 0 0

Description of Performance. 

We will be able to achieve the following FY 2008 quantifiable results and accomplishments 

related to money services businesses with the requested funds: 

• Support the collection and processing activities at Internal Revenue Service. 

• Track the number of Money Service Businesses (MSBs) registered. The current level is 

32,081 and the goal is to maintain at least that level. 

• Continue efforts to identify potentially unregistered MSBs by performing the following: 

analyzing SAR information on a monthly basis for indications of possible unregistered MSBs; 

coordinating with law enforcement and state regulatory agencies on appropriate outreach; and 

continuing efforts to educate MSBs regarding requirements for registration by publishing 

guidance and participating in industry forums and events. 

• Continue to investigate methods for measuring the extent of BSA compliance among MSBs. 

For detailed information about each performance measure, including definition, verification and 

validation, please go to: 

http://www.treas.gov/offices/management/dcfo/accountability-reports/2006-

par/Part_IV_Appendices.pdf

FinCEN - 15 
Section 4 – Supporting Materials 

4.1 – Human Resources Table 

Changes in Full Time Equivalents

Direct FTE FY 2006 FY 2007 FY 2008

Base: Year-end Actual from Prior Year 277 296 352

Increases:

Reason #1: Normal Accession 15 15 15

Reason #2: New Staffing Initiatives 13 18 4

Reason #3: Prior Year High Accessions 20 38

Subtotal, Increases: 48 71 19

Decreases:

Reason #1: Normal Attrition -15 -15 -15

Reason #2: Extra High Attrition -14

Subtotal, Decreases: -29 -15 -15

Targets 310 352

Year-end Actual/Estimated FTEs 296 352 356

Net Change from prior year SOY to budget year EOY 60

4A – Human Capital Strategy Description 

The Financial Crimes Enforcement Network created a strategic human capital objective to 

attract, develop and retain a high-performing diverse workforce. The key areas of the strategic 

human capital objective and related accomplishments are listed below. 

Strategic Alignment: Each of the four strategic objectives in FinCEN’s FY 2006-2008 Strategic 

Plan include areas that require more employees and/or employees with enhanced skills. 

Additionally, the Strategic Plan has a management objective to attract, develop and retain a highperforming diverse workforce. 

Workforce Planning & Deployment: FinCEN estimates that 21 percent of the current workforce 

will be eligible for retirement between now and FY 2010. In terms of competitive sourcing, 

FinCEN submitted its FY 2006 FAIR Act Inventory to the Department in April 2006, and 

continues to rely upon the private sector to perform its commercial activities, especially in the 

information technology environment. 

FinCEN - 16 
Leadership and Knowledge Management: FinCEN leaders and managers effectively manage 

people and sustain a learning environment that drives continuous improvement in performance. 

In FY 2006, FinCEN implemented an aggressive training strategy for its managers. By the end 

of the fiscal year, it is anticipated that all managers will have completed external training in 

executive leadership competencies. In addition, all managers were trained in how to handle 

conduct and performance problems. FinCEN’s leadership actively encourages employees to take 

advantage of the increased training opportunities available. 

Results-Oriented Performance Culture: In order to create a results-oriented, high performing 

workforce, FinCEN abolished the pass/fail performance system in FY 2005 and established a 

new 5-tier performance management system. The new performance system requires each 

employee to establish an individual development plan and three individual commitments linked 

directly to the strategic plan. The new performance system allows managers to differentiate 

performance levels among employees and hold employees accountable for meeting specified 

performance goals and targets. 

Subsequently, FinCEN implemented the Awards and Recognition Program, including the 

Director’s Awards and Recognition Program. In May 2005, the Director’s Awards Program

acknowledged 11 employees of whom 18 percent were minorities and 45 percent female. 

Following the first year on a multi-tier performance management program, 68 percent of the 

workforce was rated above the fully successful level and were appropriately recognized, while 

.02 percent were rated below fully successful and appropriate remedial actions were taken. 

Diversity: FinCEN completed several efforts to ensure a diverse workforce is maintained. 

Major efforts are listed below: 

• Held an annual Diversity Day Conference consisting of six workshops on various topics. 

Approximately 70 percent of the workforce attended the conference; 

• Continued participation in the Treasury Diversity Council and its support group; 

• Established and maintained a Diversity Advisory Committee; 

• Established a mandatory Equal Employment Opportunity (EEO)/Diversity element addressing 

EEO principles, workplace conflict, supporting EEO plans and diversity hiring requirements 

in all supervisory performance plans; and 

• Created an EEO/Diversity Manager and Employee of the Year award to recognize individuals 

who made outstanding contributions to building and maintaining a diverse, high-quality 

workforce. 

Talent: FinCEN established a new training office charged with developing defined paths for 

career progression, mentoring and coaching programs to identify and grow talent, and enhancing 

the skills of existing employees. In terms of mission critical occupation, FinCEN has targeted 

Intelligence Research Specialists and Information Technology Specialists for enhanced skills 

training to meet identified skills gaps. In FY 2006 specialized training was provided on 

improving job performance in these occupations. 

Additionally, FinCEN took advantage of many hiring authorities and flexibilities within the last 

year. For example, in FY 2006, 16 students were hired under the Student Temporary 

Employment Program (STEP); 10 in FY 2005, and 8 in FY 2004. Two students have been hired 

FinCEN - 17 
under the Student Career Employment Program (SCEP). FinCEN utilized both the Veterans 

Employment Opportunity Act (VEOA) and the Veteran Rehabilitation Act (VRA) by making 

two appointments on each authority over the past three years, and within the last two years made 

four appointments utilizing the Outstanding Scholar Program. 

Accountability: In the 3rd quarter FY 2006 Quarterly Hiring Timeline Report, FinCEN averaged 

42 days, which is under the 45 day hiring timeframe. Additionally, in the Performance Appraisal 

Assessment Tool, FinCEN quoted Federal Human Capital Survey results indicating that 81% of 

FinCEN employees know how their work relates to the agency’s goals and priorities and 76% 

feel that they are held accountable for achieving results. FinCEN was also able to clearly show 

distinctions of and consequences in levels of performance FinCEN just completed a workforce 

analysis of retirement eligibility of its Mission Critical Occupations for both 2011 and 2016 and 

recently did a FinCEN employee survey to follow up on some issues from the last Federal 

Human Capital Survey. 

FinCEN - 18 
4.2 – Summary of IT Resources Table 

Dollars in Millions

Information Technology Investments (in $ Millions) Note: All years includes FTE Costs and reimbursable FY 2006 FY 2007 Major IT Investments Budget Activity Operating Plan Obligations Operating Plan

President's

Budget 

BSA Direct Components

 Secure Outreach BSA Administration and Analysis 1.9 1.9 1.9 0.0% 2.3 21.1% 

 BSA E-Filing BSA Administration and Analysis 1.7 1.7 1.8 5.9% 3.2 77.8% 

 BSA Retrival and Sharing BSA Administration and Analysis 7.9 7.9 4.3 -45.6%

 Crossborder Wire Transfer System BSA Administration and Analysis 10.0 N/A 

Total Major IT Investments 11.5 11.5 8.0 -30.4% 15.5 93.8% 

Total Non-Major IT Investments 4.8 4.8 4.8 0.0% 8.9 85.4% 

Total Infrastructure Investments 8.2 8.2 10.9 32.9% 9.0 -17.4% 

Enterprise Architecture 0.1 0.1 0.3 200.0% 0.2 -33.3% Total IT Investments 24.6 24.6 24.0 -2.4% 33.6 40.0% 

* The BSA E-Filing FY 2008 Request includes the FY 2007 President’s Budget program funds plus the annualization of approved FY 2006 FTE increase, which was counted in IT InfraPresident's Budget.

FY 2005 % Change from

FY05 

Obligations to

FY06

% Change from

FY06 to FY07

FinCEN - 19 
4B – Information Technology Strategy 

FinCEN’s Information Technology (IT) Strategic Plan is intended to provide insights into the 

bureau’s vision of how best to leverage the rapidly evolving technology environment to satisfy 

its critical business goals; comply with federal mandates and guidance; and ensure FinCEN’s 

place in the Department of the Treasury as an excellent manager of information assets. The 

mission of FinCEN’s IT management and staff is to effectively and efficiently apply proven, 

commercially available products and explore new technologies in support of the organization’s 

efforts to safeguard the financial system from the abuse of financial crime. 

The goals of the FinCEN IT Strategic Plan are to: support regulatory compliance and promote 

electronic interchange information; facilitate analysis of collected data; facilitate the electronic 

dissemination of information; align the IT infrastructure with operational needs; and develop a 

model information resources management program. FinCEN currently has performance metrics 

for each major IT goal and identifies these in the IT Strategic Plan. 

Performance measure highlights for each IT strategic goal are listed below: 

• Goal 1: increase the number of BSA reports filed electronically, increase the number of users 

finding information accessed to be useful and easy to find, and decrease the timeframe

required for financial institutions to begin using FinCEN systems and technologies; 

• Goal 2: reduce the time needed to search the BSA data by integrating multiple data systems 

into one single BSA data repository; 

• Goal 3: reduce the time for users to obtain authorized access to the BSA data, increase the 

number of BSA users and ensure that all qualifying Egmont members have access to the 

Egmont Secure Web; 

• Goal 4: reduce the average down time for system and network maintenance; and 

• Management Goal 5: expand the number of staff certified in best project management 

practices and increase the percentage of IT staff who report understanding of roles in the IT 

organization. 

Projects are also continually reviewed to ensure continued modernization, especially for security 

purposes, or to provide cost savings. 

FinCEN - 20 
4.3 – PART Evaluation Table 

PART N

A

ame: Bank Secrecy Act Data Collection, Retrieval and S

005

haring

RTed:

ffective

indings/Recommendations

nderway

trategic

OMB Major F

1. The program has long-term

Bureau Actions Planned or U

performance measures that focus on the program's purpose and s

goals, but more work is needed to measure data quality.

1. Surveying users to determine if they are receiving needed information in a timely manner, if the

information is helpful, and if there are any problems with the information and format. This survey will be

conducted in stages. A survey on BSA e–filers is the first component; FY 2006 baseline survey results show

that 92 percent of the customers were satisfied with E-filing. For this component, future targets will be to maintain

a score of at least 90 percent. In FY 2007, in addition to a survey for e-filing, FinCEN will begin surveying the

WebCBRS and Secure Outreach users.

2. Creating targets to measure the number of top 650 filers who file reports electronically. FinCEN has

created the targets and implemented the performance measure.

3. Creating a performance measure to measure the quality of information provided on Suspicious Activity

Reports, possibly by measuring the number of completed fields that are critical to law enforcement. FinCEN

plans to measure the critical field omission rate of E-filed SARS; FY 2005 baseline was a rate of 18%. 

wo

Y

FinCEN is working on establishing FY 2006 actuals. Targets will be decided once FinCEN has at least t

years of data points. FinCEN expects to have future targets for this measure by the second quarter of F

2007.

2. Federal managers are held accountable for cost, schedule and performance results. However, some

activities are managed by another entity and are outside the scope of the performance measures.

he

he

lectronically,

3. The program can show improved efficiencies and cost effectiveness for collecting and sharing data. T

program has been able to show substantial increases in the number of users directly accessing data, t

share of filings submitted e

FY 2

Moderately E

Year P

Rating:

FinCEN - 21 
PART N

A

ame: Bank Secrecy Act (BSA) A

006

nalysis

RTed:

indings/Recommendations

nderway

roducts.

ntiorldwide.

s

1. Developing a plan to improve the survey response rate from domestic law enforcement.

2. FinCEN currently administers a survey to its customers to evaluate the impact and usefulness of it

analytic reports, but more work is needed to develop a method for better assessing the law enforcement

impact of FinCEN’s analytic products.

roduces,

as

3. FinCEN has developed plans to expand the percentage of advanced analytical products that it p

but significant effort will be required to achieve its long-term target of 75 percent in FY 2008. FinCEN h

increased the percentage of advanced analytic products from 1.6 percent in FY 2004 to 30 percent in FY 2006.

1. The Financial Crimes Enforcement Network (FinCEN) currently administers a survey to its customers to

evaluate the impact and usefulness of its analytic reports. The response rate for 2006 was significantly

increased for financial institutions and foreign intelligence units (FIUs), but more work is needed to increase

the response rate for domestic law enforcement customers.

3. Developing measures of the impact of FinCEN's efforts to strengthen anti-terrorist financing and a

money laundering programs w

2. Evaluating the feasibility of better assessing law enforcement impact of FinCEN’s p

Bureau Actions Planned or U

OMB Major F

FY 2

Adequate

Year P

Rating:

FinCEN - 22 
PART Name: Bank Secrecy Act (BSA) Administration

Year PARTed: FY 2006

Rating: Results Not Demonstrated

OMB Major Findings/Recommendations

Bureau Actions Planned or Underway

1. Questions have been raised concerning compliance and burden issues relating to the regulations FinCEN 

issues, and more time is needed to examine the costs and benefits of the reporting requirements.

1. Expanding outreach efforts to certain targeted industries to augment their understanding of the value of

BSA data. 

2. Developing a long-range plan to expand compliance oversight and reporting by state regulators for newly

covered industries. 

3. Developing measures of the impact of program activities on preventing the misuse of the financial system

by those engaged in illicit activities. 

2. Although FinCEN has made progress in executing memoranda of understanding agreements (MOUs)

governing the exchange of information with federal and state regulatory agencies, additional time is needed 

to ensure BSA compliance in more vulnerable industries, particularly the money services business industry.

3. The program has annual performance measures that focus on the implementation of the Bank Secrecy 

Act, such as the number of MOUs that have been entered into, but more work is needed to measure the

impact of program activities on preventing the misuse of the financial system by those engaged in illicit 

activities.

For a complete list of PART results visit the following website: 

http://www.whitehouse.gov/omb/expectmore/all.html

FinCEN - 23