COUNTER-TRAFFICKING IN LATIN AMERICA INTERAGENCY CROSS-CUT STUDY

Department of State, Rachel KarasDepartment of Defense, Dan MacDuff

Department of Justice, Lindsay RobertsDepartment of Homeland Security, Sean Lynch

Departments of Treasury and Labor, Arash Karimi Intelligence Community and US Agency for International Development, Alex Sceery

National Security BudgetingSpring 2013

Professor Adams

U.S. DEPARTMENT OF STATE (RACHEL KARAS)FY2013 anti-trafficking/counternarcotics budget: $1.346 billion

Human Trafficking

State leads the U.S. government’s international diplomatic presence in matters of human trafficking, and works to end modern slavery in the forms of both sex and labor trafficking. The department runs the only foreign assistance program for the purpose of combating human trafficking outside of the U.S.

Bureau of Civilian Security, Democracy and Human Rightso Office to Monitor and Combat Trafficking in Persons (TIP)

Created by the Trafficking Victims Protection Act (TVPA) of 2000 Enumerates Constitutional guarantees of freedom from modern slavery and involuntary servitude, treaty obligations

and updates post-Civil War slavery statutes “3P” Paradigm: Protecting victims, preventing trafficking and prosecuting traffickers + partnership Global rather than country-specific focus

Operational Sections of TIP1. Reports and Political Affairs

a. Advocate for “3P,” set goals, measure progress, analyze trendsb. Annual TIP Report c. Creates national action plans and recommendations described in TIP Report

2. International Programsa. 168 active grant-funded programs in 70 countries – total $64 millionb. $18.7 million given in grants in FY2013

i. $17.7 million for 40 grants in FY 20121. 8 global, 5 regional, 27 in 23 specific countries[2.] Almost 90% of funded projects include a protection component2.[3.] Almost 60% percent provide direct services to victims3.[4.] 65% build capacity of local law enforcement and prosecutors; victim protection4.[5.] 75% address both labor and sex trafficking

ii. $24 million for 69 grants in FY2011c. Competitive federal grant process for international/nongovernmental organizationsd. Provides on-site evaluation assessments, assistance through law enforcement training, technical assistance, legislative

drafting, etc.

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3. Public Engagementa. Liaison to Congress, USG agencies, media, NGOs, industry, academia, public, etc.b. Chair of President’s Interagency Task Force to Monitor and Combat Traffickingc. Senior Policy Operating Group; Human Smuggling and Trafficking Center; various other interagency teams

4. Special teams on multilateral affairs; strategic planning and budget issues

The TIP Report (est. 2001) is the main means of engagement with foreign governments to combat human trafficking. It is the world’s most comprehensive resource of governmental anti-human trafficking efforts, ranking more than 180 countries on three tiers based on their government’s effort to comply with TVPA’s minimum standards for elimination of trafficking.

Bureau of Diplomatic Securityo Human Smuggling and Trafficking Center

Interagency mechanism for integration of policy, law enforcement, intelligence and diplomacy on trafficking State, Homeland Security, Justice, Director of National Intelligence, etc. Functions: broad dissemination of all source information, create strategic assessments, identify issues for

interagency coordination or attention, coordinate initiatives and provide operational support Est. 2004 – Intelligence Reform and Terrorism Prevention Act

Bureau of Migration and Refugee Assistanceo Provides technical assistance to build the capacity of interested governments to humanely manage migration; directly assist

victims of human trafficking, unaccompanied children, persons rescued at sea, and stateless personso Works with International Organization for Migration

J/TIP received funding through the Economic Support Fund and International Narcotics Control and Law Enforcement accounts until FY2011. TIP is now budgeted for through INCLE alone because of the global nature of trafficking cannot be addressed as effectively by the country-specific ESF account.

Drug Trafficking/Counternarcotics

“Dedicated to strengthening criminal justice systems, countering the flow of illegal narcotics, and minimizing transnational crime, INL plays a key role in leading the development and synchronization of U.S. international drug and crime assistance. INL's technical support is tailored to bolster capacities of partner countries through multilateral, regional, and country-specific programs.”

Bureau of International Narcotics and Law Enforcemento Office of Western Hemisphere Programs

Merida Initiative U.S.-Mexico partnership to combat drug trafficking, organized crime, corruption, illicit arms trafficking, money-

laundering, and demand for drugs2

$1.6 billion since FY2008 Central American Regional Security Initiative/Central American Citizen Safety Partnership

o Development of a regional capacity to respond to drug traffickers and other transnational criminal organizations. INL programs under CARSI focus on: the creation of interconnected information systems, increasing information handling capacity and sharing, targeting bulk currency smuggling, drug trafficking and alien smuggling. INL programs provide advanced training on border and mobile inspections and police training and equipment.

o $361 million since FY2008 Western Hemisphere Regional Program INL also runs country-specific anti-drug trafficking and counternarcotics programs in: Argentina, Bolivia, Colombia,

Ecuador, Guyana, Mexico, Peru, Suriname, Uruguay and Venezuelao Office of Aviation

“Provides aviation expertise and resources to eradicate and interdict illicit drugs” Inter-regional Aviation Support Critical Flight Safety Program

Aircraft in Bolivia, Colombia, Guatemala, Mexico, Peruo Office of Policy, Planning and Coordination

International Narcotics Control Strategy Report; Presidential List of Major Drug Source and Transit Countries Works with UN Drug Control Program; OAS Inter-American Drug Abuse Council Commission and their

offices/committeeso Office of Anti-Crime Programs

International Organized Crime Strengthening cooperation to fight international organized crime, corruption, money-laundering, terrorist financing,

cyber-and intellectual property crimes, border security, narcotics trafficking and various other smuggling and trafficking crimes

Develops new protocols, e.g., DUNCAC, UNTOC Drug Demand Reduction/Drug Awareness; International Law Enforcement Academies

Bureau of International Security and Nonproliferationo Export Control and Related Border Security (EXBS) Program

Helps countries develop and improve their strategic trade and related border control systems Assesses and assists foreign government work on export laws and regulations, licensing, enforcement, cooperation with

industry and interagency cooperation Funded by annual Foreign Operations Appropriations Acts, contracts directly with the private sector FY2008 budget of about $40 million (NADR account)

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Partners with: ATF, DEA, FBI, DOD, DOJ, Financial Crimes Enforcement Network, Immigration and Customs Enforcement, Narcotics Affairs Section – U.S. Embassies in Colombia & Guatemala, National Criminal Justice Reference Service, National Institute on Drug Abuse, Office of National Drug Control Policy, Substance Abuse and Mental Health Services Administration, U.S. Coast Guard, U.S. Customs and Border Protection, Dept. of Agriculture, Marshals Service, Secret Service, World Justice Information Network, Inter-American Drug Abuse Control Commission, International Narcotics Control Board, International Organization for Migration, Interpol, Organization for Economic Co-operation and Development, United Nations Office on Drugs and Crime

Funding of rewards for information on narcotics trafficking TIP is part of the account for Emergencies in the Diplomatic and Consular Service. There are approximately $162 million in pending reward offers for cases concerning narcotics traffickers.

Weapons TraffickingThe State Department addresses conventional and non-conventional arms trafficking and control mainly through the Bureau of International Security and Nonproliferation. Though most arms control deals with nuclear weapons and the U.S. nuclear reduction strategy, there are programs to combat illicit movement of any weapons.. Many of the weapons trafficking initiatives are closely linked to those on drug trafficking through the EXBS and regional programs in Latin America.

Bureau of International Security and Nonproliferationo Office of Export Control Cooperation

Export Control and Related Border Security Program Programs include: Western Hemisphere, Argentina, Brazil, Chile, Mexico, Panama, State Western Hemisphere

Regionalo Small Latin America team with Office of Regional Affairso Regional Programs:

Central America Regional Security Initiative Merida Initiative

Bureau of Political-Military Affairso Office of Weapons Removal and Abatemento Conventional Weapons Destruction program

1. Curb the illicit trafficking, availability and indiscriminate use of conventional weapons of war that fuel regional and internal instability

2. Pursue and help manage post-conflict cleanup of such weapons in areas needed for civilian use3. Engage civil society to broaden support for our efforts and enhance U.S. influence

Works closely with ATF

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DEPARTMENT OF DEFENSE (DAN MACDUFF)

Responsibilities and MissionThe Defense Department (DOD) has been the lead agency for US interdiction efforts since FY 1990. This involves supporting law enforcement efforts to detect and prevent the aerial and maritime transit of illicit cargo into the US. To further this mission, the DOD provides intelligence, ships, aircraft, and military personnel to support law enforcement and foreign security forces. Interdictions are carried out by the Coast Guard or US and partner law enforcement agencies. The authority comes from 10 U.S. Code § 124, 371-374, 379-381, 2576, 2576a, Title 32 U.S. Code, § 112, 50 U.S.C. § 414, Section 1004, National Defense Authorization Act for 1991, as amended; Section 1033 of the National Defense Authorization Act for 1998, as amended, and Section 1022 for the National Defense Authorization Act for 2004, as amended.

BudgetIn FY 2014, The Department of Defense (DOD) requested $1.443 billion through the Counternarcotics Central Transfer Account (CN-CTA) within the Operations and Maintenance Account. This is the main source of funding for all DOD counternarcotics (CN) operations. From this account, the funds are allocated to specific programs and projects and then transferred to the services for implementation.

In FY 2013, the DOD is set to spend a total of $1.63 billion on counternarcotics and counter-trafficking operations and activities including the continuing resolution (CR) funds. The counternarcotics funding levels for Latin America in FY 2014 are still not available because DOD budgets by function and not country. Based on budget reductions, funding levels to Latin America are likely to decline slightly. The following table shows historical data on counternarcotics spending in millions of current US dollars.

FY 2005 FY 2006 FY2007 FY 2008 FY 2009 FY 2010 FY2011 FY 2012 FY 2013

FY2014 (Request)

Total Latin America1 428,283 397,736 394,903 405,621 484,330 461,612 469,886 443,192 426.337 -

The table on the left shows a breakdown by function of the total funds available for drug interdiction and counterdrug activities by millions of dollars in the CN-CTA. The FY 2013 numbers do not reflect the additional funding from the CR.

The table on the right reflects the breakdown of the total $1.503 billion of FY 2012 funds obligated from the Counternarcotics Central Transfer Account (CTA) in thousands of US dollars. The funding levels in the CN-CTA do not coincide with the obligated funds because some are multiyear funding streams.

FY 2012 Obligated Funds2

1 Source: Seelke, Clare Ribando, Liana Sun Wyler, June S. Beittel, and Mark P. Sullivan. Latin America and the Caribbean: Illicit Drug Trafficking and U.S. Counterdrug Programs. CRS Report for Congress, Washington : Congressional Research Service, 2012.2 Source: Depart of Defense, Independent Auditor's Report on the DoD FY 2012 Detailed Accounting Report of the Funds Obligated for National Drug Control Program

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Intelligence: Domestic Law Enforcement 4,589Intelligence: Interdiction 31,664Intelligence: International 136,987Interdiction 423,605International 524,332Investigative 14,167Prevention 135,181R&D Interdiction 2,518R&D International 120State and Local Assistance 230,263Treatment 0Total 1503426

CN-CTA Resources by Function3

Function FY 2011 FY 2012 FY 2013Intelligence 185.350 202.216 231.206Interdiction 480.143 506.636 495.809International 680.777 685.474 642.361Investigations 14.076 14.610 14.709Prevention 121.504 155.618 109.606R&D 15.834 12.857 9.512State/local aid 245.596 251.424 127.084Total 1743.28 1828.83 1630.29

Activities Report No. DODIG-2013-042.3 Source: Executive Office of the President. National Drug Control Strategy Budget and Performance Summary, 2012.

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While CN-CTA funds are to pay for a wide variety of activities, they may not be used for the following operational costs which are known as operations tempo (OPTEMPO):

Flight hours Operational costs for ships (steaming).Question: what do the Interdiction costs above buy, if not operational costs? Maintenance or fuel costs Drug and Alcohol Program Advisors or Substance Abuse Control Officers Employees or contractors not engaged in full time counter-narcotics work Staff logistical costs

Office of Secretary of Defense The Office of the Deputy Assistant Secretary of Defense for Counternarcotics and Global Threats (DASD [CN & GT]), reporting to the Under Secretary of Defense for Policy, is responsible for counternarcotics policy and carrying out activities supporting the National Drug Control Program (NDCP). The Counter NarcoTerrorism Technology Program Office (CNTPO) under the Special Operations Low-Intensity Conflict Directorate, within the Counternarcotics and Global Threats Office executes the DOD’s strategy by providing contracting services. It works with the DOD, federal agencies, partner nations, and State and local authorities engaged in counterdrug and counter narcotics operations.

The Defense Security Cooperation Agency provides policy oversight, guidance, planning, coordination, and direction for the execution of security cooperation programs for the sale and lease of defense articles to foreign governments. The Asia Pacific Americas (APA) Division provides these services to USSOUTHCOM and USNORTHCOM.

DOD efforts to combat trafficking are largely internal and focused on providing awareness of trafficking in persons (TIP) to US service members. For that reason, the Principal Deputy Under Secretary of Defense for Personnel and Readiness (PDUSD[P&R]), is the Department lead for countering trafficking in persons. (PDUSD[P&R]) provides awareness and prevention training to identify and address cases of trafficking especially in overseas posts.

To support counternarcotics operations, the DOD may provide the following when requested by law enforcement agencies or to military personnel when performing CN duties including training and technical assistance:

Aerial support for the purposes of reconnaissance to include the use of unmanned aerial vehicles Ground reconnaissance including ground-based radar Tunnel detection operations Diver support to inspect submerged hulls Intelligence and linguistic support excluding cryptologic support, real-time translation of wire intercepts, or the use of counterintelligence assets.

DOD personnel are prohibited from direct participation in interrogation activities. Transportation support excluding tactical operations or when CN-related hostilities are present Information technology and communications support to improve integration with law enforcement Equipment maintenance and operations support excluding the cost of parts Technology demonstrations

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Joint Chiefs of StaffThe Chairman of the Joint Chiefs of Staff (CJCS) provides strategic guidance to combatant commanders based on the National Defense Strategy. The Joint Staff operations directorate provides worldwide monitoring and coordination of current CN operation, coordinates all operational aspects of CJCS responsibilities for implementing DOD mission as lead agency for detection and monitoring, and serves as the coordinator for CN operational matters on all law enforcement requests for military support. The Joint Staff policy directorate provides strategic planning and guidance on organizational issues, politico-military affairs, and coordination with elements both within and outside of the DOD.

National Security Presidential Directive (NSPD-22) states that Departments and agencies shall ensure that all of the appropriate offices within their jurisdiction are fully trained to carry out their specific responsibilities to combat trafficking.” In response, the DOD created the Combating Trafficking in Persons (CTIP) program and CTIP Taskforce in the Office of the Secretary of Defense. Within the Joint Staff (JS) the coordinator for Trafficking in Persons (JS TIP) acts as a liaison between the OSD and the Combat Commands (COCOMS) regarding Trafficking in Persons (TIP).

Combatant Commands (COCOMS)US Combatant Commands provide the operational authority for Counternarcotics operations.

US Northern Command (NORTHCOM) NORTHCOM’s area of operation includes Mexico, the Gulf of Mexico and parts of the Caribbean. Specifically, NORTHCOM focuses its efforts to provide operational support to law enforcement efforts to detect, deter, and disrupt illicit trafficking across the 2,000 mile US-Mexico border. NORTHCOM is also responsible for the North American Aerospace Defense Command (NORAD), which tracks planes suspected of illicit drug trafficking into the US. NORTHCOM works closely with SOUTHCOM to monitor the tri-border area between Mexico’s Southern border, Belize, and Guatemala.

U.S. Southern Command (SOUTHCOM)This is a unified combatant command responsible for conducting military operations and ensuring security in the Caribbean, Central America, and South America. SOUTHCOM consists of supported by four service component commands, one sub-unified command, and three joint task forces. These are U.S. Army South (USARSOUTH), Twelfth Air Force (Air Forces Southern) (12 AF (AFSOUTH)), U.S. Naval Forces Southern Command (USNAVSO), U.S. Marine Corps Forces South (USMARFORSOUTH), U.S. Special Operations Command South (USSOCSOUTH), Joint Task Force Bravo (JTF-B), Joint Task Force Guantanamo (JTF – GTMO), and Joint Interagency Task Force-South (JIATF-S).

SOUTHCOM takes a holistic approach to countering illicit trafficking by recognizing that criminals and traffickers threaten regional stability through the potential for terrorism and WMD proliferation they enable. Therefore, SOUTHCOM targets the production, acquisition, storage, and/or transfer of illicit drugs, weapons of mass destruction (WMD) precursors, and WMD; illegal arms trafficking; threat finance; human trafficking and smuggling of special interests aliens; and their related supporting activities. To fulfill its mission, SOUTHCOM focuses on interagency engagement by working with US and multinational agencies. These include joint military operations, training, and strategic communication with regional allies.

Special Operations Command (USSOCOM)USSOCOM trains, organizes, equips, and deploys combat ready special operations forces to combatant commands. It can operate in a joint, multinational, or multiagency environment and provides training to vetted foreign security forces.

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ServicesWhile each service has a forces dedicated to both USNORTHCOM and USSOUTHCOM, they vary in their CN and counter-trafficking missions. All services provide some level of operational or logistical support to DHS and law enforcement agencies. Below are some of the highlights from each of the services.

NavyThe Navy splits CN activities between US Naval Forces Northern Command, which focuses on Mexico and US Naval Forces Southern Command. The Navy employs seven frigates, one replenishment ship, and four fixed-wing aviation squadrons deployed to support Operation MARTILLO, conducting Countering Transnational Organized Crime (C-TOC) Operations under the direction of Joint Interagency Task Force South (JIATF-South).

ArmyU.S. Army South (ARSOUTH) works with interagency and international partners in 31 countries to combat illicit trafficking. It conducted 31 security cooperation events in 13 countries in U.S. Southern Command’s area of responsibility in 2012.

Marine CorpsMarine Corps Forces South (MARFORSOUTH)’s mission is to build security forces to detect, deter, and defend critical infrastructure and assets in Latin America. It conducted 67 Security Cooperation events in 27 countries in United States Southern Command’s area of responsibility in 2012.

Air Force12th Air Force (Air Forces Southern) works with interagency and partner nation aircraft to support detection and monitoring missions. The aircraft are located throughout the region and at two Cooperative Security Locations (CSLs) in Comalapa, El Salvador and in Curacao and Aruba. These aircraft, in cooperation with partner nations and U.S. agencies, fly persistent missions to monitor areas with a history of illicit trafficking.

National Guard BureauThe National Guard has more than 300 service members engaged in CN operations along the US-Mexico border. It also provides analytic services to US Immigration and Customs Enforcement and ground surveillance teams to US Customs and Border Protection. It also provides support to law enforcement agencies in the Department of Homeland Security engaged in counter-trafficking operations.

Task ForcesThe Joint Interagency Task Force South (JIATF-S) headquartered in Key West, Florida facilitates international and interagency detection and monitoring operations, facilitates interdiction of illicit trafficking operations, and conducts other operations in support of national and international security operations. The JIATF-S area of operations overlaps with that of USNORTHCOM and requires extensive information sharing and communication.

Joint Task Force Bravo (JTF-B) headquartered at Soto Cano Air Base, Honduras operates an all-weather, day/night C-5 capable air base. This forward base coordinates and supports joint operations, activities, and multilateral exercises to promote regional cooperation and security in the Caribbean, Central America, and South America. It is one of two task forces under USSOUTHCOM.

Joint Task Force Guantanamo headquartered at Guantanamo Bay, Cuba supports counternarcotics operations by providing logistical support such as refueling for US forces operating in the Caribbean.

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Joint Task Force North (JTF-N) headquartered at Biggs Army Airfield, Fort Bliss, Texas is responsible for support of US federal law enforcement agencies conducting interdiction operations against transnational threats to the continental United States. Operating under USNORTHCOM, JTF North is under operational control by the US Army North's (USARNORTH) Joint Force Land Component Command (JFLCC). It conducts homeland defense and civil support operations against transnational threats from Mexico.

Foreign Assistance Of the $426,337 million requested by the DOD in FY 2013 for counternarcotics funding, a large portion of it will be used to provide a wide range of contracted services to combat trafficking in Latin America including the training and equipping of security forces. The Foreign Assistance Act of 1961 makes the State Department responsible for coordinating all foreign assistance meaning that DOD programs should complement existing ones run by State. However, the differing mission and independent authority of DOD have caused a lack of integration of several DOD programs.

Historically, DOD has focused on providing training and equipment to support security forces in Colombia and the Andean region broadly. This assistance comes in the form of contracts to select companies that provide the training and equipment to local security forces. Recently, DOD has shifted its focus more broadly throughout Latin America including a massive increase in aid to Mexico beginning in FY 2010. In FY 2013, the top country recipients of DOD aid are Colombia $85.632 million, Mexico $75.321 million, Netherlands Antilles/Curacao $26.606 million, Peru $12.040 million, and Ecuador $9.828 million.

DEPARTMENT OF JUSTICE (LINDSAY ROBERTS)

Responsibility and Mission The Department of Justice (DOJ) is comprised of many sub-agencies, several of which work to combat trafficking in narcotics, arms, and people. As a law enforcement agency, DOJ primarily focuses on investigations and prosecutions. Internationally, the DOJ most often operates in conjunction with host governments in accordance with the policies of the Secretary of State. DOJ agencies provide technical assistance and may, with the cooperation of the host government, collaborate on investigations within the agencies’ areas of expertise. In addition to its traditional law enforcement functions, DOJ agencies host international trainings to support foreign governments’ capacities to combat trafficking.

BudgetThe DOJ’s budget is broken down by agency with reference to strategic goals as detailed in the DOJ Strategic Plan for Fiscal Years 2012-2016. The publicly available budget documents do not provide sufficient detail to determine which funds are spent specifically on counter-trafficking activities, or to determine where the funds are spent. For OCDETF and DEA, the budget data reflects its overall international activities, but this could not be broken down by region. Other agencies’ data were not detailed enough to distinguish between domestic and international counter-trafficking activities. Therefore, the data below is intended to provide a broad overview of DOJ counter-trafficking resources, but should be viewed as an overestimate for funding dedicated to counter-trafficking in Latin America.

DOJ Estimated Counter-Trafficking Funding (in $000)Agency 2011 Enacted 2012 Enacted 2013 CR 2014 RequestOrganized Crime and Drug Enforcement Task Forces Program (International Organized Crime activities)

0 0 0 3,000

Bureau of Alcohol, Tobacco, Firearms and Explosives 667,525 691,190 695,680 737,711Drug Enforcement Administration (all international activities)

406,365 417,670 420,200 430,723

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Federal Bureau of Investigation * * * *Civil Rights Division * * * *Criminal Division 55,476 55,442 56,559 55,381INTERPOL Washington 29,754 29,754 29,936 29,844

TOTAL 1,159,120 1,194,056 1,202,375 1,256,659

*Could not obtain a meaningful estimation Source: DOJ Budget and Performance Summaries 2013 and 2014 Agencies

Organized Crime and Drug Enforcement Task Forces ProgramOCDETF coordinates all elements of federal law enforcement within DHS, DOJ, and the Department of the Treasury against the largest national and international drug trafficking and money laundering organizations. OCDETF works to identify international supply sources, international and domestic transportation organizations, distribution networks, and violent enforcers, while combating the money flow and firearms trafficking associated with drug trafficking. OCDETF is “prosecutor-led, multi-agency, and intelligence-driven.”

OCDETF’s budget supports the 2011 National Southwest Border Counternarcotics Strategy and the DOJ’s Strategy for Combating Mexican Cartels. The budget is structured to reimburse DOJ agencies for their OCDETF participation. Non-DOJ agencies request their own funding for participation in OCDETF. Decision units include investigations, prosecutions, and transnational organized crime. The TOC budget request for 2013 and 2014 was $3,000,000 each year.

Bureau of Alcohol, Tobacco, Firearms, and ExplosivesThe Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) works to protect communities from, inter alia, criminal organizations and the illegal use and trafficking of firearms. ATF engages in a combination of law enforcement and regulatory activities. ATF’s Strategic Goal 1 is to combat illegal firearms trafficking.

Office of International Affairs: Coordinates ATF’s international activities, including requests for assistance and training, and assisting with international criminal investigations. ATF has an office in Mexico and a Regional Firearms Advisor based in El Salvador also serving Guatemala, Nicaragua, Panama, Belize, Honduras, and Costa Rica.

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ATF National Tracing Center: Traces origins of weapons to provide investigative leads. ATF traces firearms for foreign law enforcement agencies to provide leads, detect traffickers, and identify trafficking routes.

El Paso Intelligence Center: ATF manages the gun desk at this center operated by the DEA.

Project Gunrunner: ATF’s primary Southwest Border firearms enforcement program. This project brings together various DOJ components to combat weapons trafficking and associated violence. Forensic science labs analyze recovered firearms for trace evidence and to identify their origin

Organized Crime Drug Enforcement Task Force: Participates in this multi-agency task force to provide direct investigative expertise to combat international organized crime threatening U.S. national and economic security.

Import Regulation: ATF issues permits for the importation of firearms, ammunition, and other defense articles. ATF maintains close communication with the Department of State and U.S. Customs and Border Protection to ensure that the issued permits are consistent with U.S. foreign policy and national security interests.

Drug Enforcement Administration The Drug Enforcement Administration (DEA) is tasked with enforcing the Federal controlled substances statutes, which includes bringing to justice organizations and principal members involved in growing, manufacturing and distributing controlled substances appearing in or destined for the U.S. market.

Approximately 14.4% of DEA’s overall budget supports international activities. DEA’s international training programs are funded by the Department of State’s Bureau of International Narcotics and Law Enforcement (INL) and the Department of Defense (DoD). In FY 2012, DEA received $569,015 from INL and $221,608 from DoD to conduct international training seminars.

International Enforcement: DEA does not operate unilaterally overseas, but works under the policy guidance of the Secretary of State and U.S. Ambassadors for all international drug law enforcement activities. DEA cannot be actively involved in the arrest of suspects overseas without the approval of the host government. DEA cooperates with foreign counterparts on investigations. DEA has international offices in Honduras, El Salvador, Costa Rica, Panama, Mexico, Nicaragua, Guatemala, Belize, Paraguay, Colombia, Brazil, Argentina, Uruguay, Venezuela, Peru, Ecuador, and Chile. DEA also works to identify current and future trends in drug trafficking, working closely with the United Nations, Interpol, and other organizations on matters concerning international drug programs. While working abroad, DEA has five functions: participating in bilateral investigations, developing foreign liaisons to share drug-related intelligence, support institution building in host countries, support intelligence gathering, host international training.

International Training Program: DEA receives funding from INL and DoD to conduct trainings for international law enforcement in foreign host countries and at Quantico. The courses change in response to new experience, current international narcotics trafficking situations, new technologies, and specific requests from host governments. DEA anticipated meeting its target of training 2,300 students in FY 2013. It is unknown how many of these students were from Latin America.

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Southwest Border Initiative: DEA collaborates with FBI, USCS, and US Attorneys Offices to combat trafficking groups along the border. Works with partners to conduct wiretaps to identify members of Mexico and Colombia-based drug trafficking groups. DEA also participates in bi-national task forces in Monterrey, Juarez, and Tijuana.

El Paso Intelligence Center: DEA operates the EPIC, which focuses on providing intelligence to support law enforcement efforts in the Americas. It has a 24-hour watch function so that law enforcement agents, investigators, and analysts have immediate, up-to-date access to participating agencies’ databases.

Organized Crime and Drug Enforcement Task Force: Participates in this multi-agency task force to provide direct investigative expertise to combat international organized crime threatening U.S. national and economic security.

High Intensity Drug Trafficking Area Task Force: Work with other law enforcement agencies to prevent and investigate violent firearms crimes involving gangs and organized criminal enterprises.

Federal Bureau of Investigation The FBI’s work to combat drugs and arms trafficking is done mostly in partnership with other agencies including ATF and DEA. The FBI’s budget does not reflect that they receive funding to combat drug trafficking specifically. FBI’s work against human trafficking primarily occurs domestically. The FBI’s has a strong international presence in US embassies, and its activities abroad are done under the guidance of the Secretary of State.

International Operations Division, Legal Attach é s : The FBI has “legats” in Mexico, Dominican Republic, Barbados, Venezuela, El Salvador, Panama, Colombia, Chile, Brazil, and Argentina. Each office is situated within a U.S. embassy or consulate. FBI special agents and other personnel maintain close contact with other federal agencies, Interpol, foreign police officers and national and international law enforcement associations. Legats primarily coordinate joint agency activities and facilitate information sharing, training, and investigative assistance, which may involve counter-trafficking.

Latin America/Southwest Border: The FBI realigned its resources to develop an intelligence-led strategy using hybrid squads to identify the center of organized crime rings. Works to continually assess the criminal enterprise threat to direct FBI intelligence and investigative efforts. The FBI uses a hybrid squad model consisting of interdisciplinary teams of special agents, intelligence analysts, staff operations specialists, and other professionals that provide a comprehensive approach to combat transnational organized crime.

Human Smuggling Trafficking Center: Created 2004 by the Secretary of State, the Secretary of Homeland Security, and the Attorney General. The HSTC serves as a fusion center for information about human smuggling and trafficking among agencies including the CIA, FBI, Department of States, and DHS.

Civil Rights Division, Criminal SectionHuman Trafficking Prosecution Unit: HTPU combines the expertise of top human trafficking prosecutors. They work to streamline multijurisdictional and fast-paced trafficking investigations and to ensure consistent application of federal human trafficking laws. Although the HPTU supports US Attorney’s Offices prosecutions of human trafficking crimes in US Courts, the prosecutions may involve international trafficking networks.

Criminal DivisionThe Criminal Division is responsible for enforcing federal criminal laws, except those specifically assigned to other divisions. The Division has several sections that support counter-trafficking in arms, drugs, and people, whether through prosecutions or international trainings and cooperation.

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Asset Forfeiture and Money Laundering Section: Lead the DOJ’s efforts in investigating and prosecuting money laundering, which may occur in connection with drug cartels and other organized criminal activities.

Narcotic and Dangerous Drug Section: Responsible for developing innovating law enforcement approaches to combat organized international drug trafficking. Bilateral Case Initiative: A program in which NDDS attorneys work with the DEA to investigate and prosecute large transnational narcotics traffickers

in U.S. courts using evidence gathered by foreign law enforcement officials. Special Operations Division: A multi-agency body that works to dismantle large international and domestic drug trafficking and money laundering

organizations by coordinating investigations across jurisdictions.

Office of International Affairs: OIA coordinates the extradition of international fugitives and assists in international evidence gathering. OIA participates in international negotiations and organizations to resolve international law enforcement challenges including narcotics trafficking, organized crime, and money laundering. OIA has offices in Mexico City and San Salvador. OIA is increasingly involved in OCDETF’s investigations to handle requests under Mutual Legal Assistance Treaties, provisional arrest warrants, and extraditions.

International Criminal Investigative Training Assistance Program: ICITAP works with foreign governments to develop their law enforcement capacity to protect human rights, combat corruption, and reduce the threat of transnational crime and terrorism. ICTAP was initially created in Latin America and currently has programs in Colombia, El Salvador, and Mexico. ICITAP’s Mexico program is mostly focused on technical assistance related to drug analysis and firearms. Office of Overseas Prosecutorial Development and Training: OPDAT works to develop and administer technical assistance to foreign justice and law enforcement institutions so that they can more effectively combat, inter alia, trafficking in persons and organized crime. OPDAT’s Latin American offices are located in Mexico, El Salvador, and Colombia. OPDAT personnel work to reform laws and procedures, especially related to victim assistance and human trafficking.

INTERPOL WashingtonINTERPOL Washington represents the U.S. in the International Criminal Police Organization and is co-managed by DOJ and DHS. INTERPOL Washington supports U.S. and foreign law enforcement agencies that seek assistance in criminal investigations that go beyond their borders.

Drug Division: Assists foreign law enforcement agencies in responding to drug trafficking. The division pursues fugitives who are subjects of drug-related INTERPOL Red Notices. It also responds to requests from law enforcement authorities about drug trafficking trends, organizations, trade routes, and distribution.

Human Trafficking and Child Protection Division: Exchanges intelligence with INTERPOL member countries to counteract human trafficking by criminal organizations and individual criminals. It also works with foreign law enforcement and non-governmental organizations to locate missing children and counteract child sex tourism, in addition to tracking international movements of registered non-compliant sex offenders.

Violent Crimes Division: Supports investigations involving, inter alia, firearms and explosives trafficking

Economic Crimes Division: Supports investigations involving, inter alia, money laundering and organized crime.

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DEPARTMENT OF HOMELAND SECURITY (SEAN LYNCH)Mission:

o Securing and Managing Our Borders Effectively Control U.S. Air, Land, and Sea Borders Safeguard Lawful Trade and Travel Disrupt and Dismantle Transnational Criminal Organizations

o Enforcing and Administering Our Immigration Laws Strengthen and Effectively Administer the Immigration System Prevent Unlawful Immigration

Budget Authority for Counter-Trafficking AgenciesTotal Budget Authority by Organization ($000)

FY 2011Enacted

FY 2012Revised Enacted

FY 2013Annualized

CR

FY 2014Pres.

Budget

FY 2014 +/-FY 2012

FY 2014 +/- 2012

U.S. Customs and Border Protection (CBP)

($) 11,245,410

($) 11,781,438

($) 11,863,849

($)12,900,103

($)1,118,665

(%)9%

Federal Law Enforcement Training Center (FLETC)

270,832 271,413 272,703 271,429 16 0%

U.S. Immigration and Customs Enforcement (ICE)

5,805,420 5,982,977 5,878,209 5,341,722 (641,255) -11%

Office of Counternarcotics Enforcement (CNE)

2,885,000 1,880,000 0* 0* 0*(1,880,000)

0*

Analysis and Operations (A&O)

334,360 338,068 339,957 309,228 (28,840) -8%

U.S. Coast Guard (USCG) 10,193,685 10,422,410 10,497,057 9,793,981 (628,429) -6%

Total Budget Authority in Counter-Trafficking

30,734,707 30,676,306 28,851,775 28,616,463 (2,059,843) -7%

*Office Terminated and Consolidated into the Office of PolicySources: FY 2014 Budget-in-Brief Department of Homeland Security. For FY 2011 data it is FY 2013 Budget-in-Brief Department of Homeland Security

Budget Overview: While this is the total budget authority for each of the components of DHS that are involved in counter trafficking operations, it encompasses more than what is actually spend on purely counter-trafficking. The budget data for that function specifically is not kept, and it is instead only broken down into what is spent on counter-trafficking. Due to the similar nature of all counter trafficking operations in the different components of DHS (i.e. CBP secures borders against all types of trafficking) the initial budget table is probably too wide a representation of what is spent on counter trafficking in Latin America by DHS, but the forthcoming budget data by each component of DHS is probably too narrow as it only encompasses counternarcotics spending

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by each one. The true amount of spending is an approximation between both numbers of total spending by these DHS components.

Sub-Agencies:

Customs and Border Protection (CBP) Mission- Titles 18 U.S.C. and 19 U.S.C. authorize U.S. Customs and Border Protection to regulate the movement of carriers, persons, and

commodities between the U.S. and other nations. Through this statutory authority CBP plays a role in anti-drug efforts along the border, and its jurisdiction is triggered by illegal movement of merchandise, arms, funds, or persons across our national borders

Structure- CBP is a multi-mission bureau composed of Border Patrol (OBP), Field Operations (OFO), Information Technology (OIT), Technology Innovation and Acquisition (OTD), and Air and Marine (OAM).

Budget- Counternarcotics Spending for CBPBudget Authority (In Millions)

FY 2011 FY 2012 FY 2013Final Enacted Requested

Drug Resources by Function ($) ($) ($)Intelligence 341.502 363.867 380.672Interdiction 1,896.816 1,916.476 1,895.750

Total Resources by Function 2,238.318 2,280.343 2,276.422Drug Resources by Decision Unit ($) ($) ($)

Air and Marine Operations 463.765 454.477 392.192Border Security Fencing 85.954 60.000 49.065Salaries and Expenses 1,688.599 1,765.866 1,835.165

Air & Marine Ops [252.622] [257.364] [252.737]Border Security & Control [481.517] [547.752] [547.141]Border Security and Trade

Facilitation[883.540] [893.497] [946.672]

HQ Management and Administration

[70.920] [67.253] [88.615]

Total by Decision Unit 2,238.318 2,280.343 2,276.422Source: FY 2013 Budget and Performance Summary: Companion to the National Drug Control Strategy

Cross Agency Work- CBP works closely with the DEA in pursuing counternarcotics policies, and closely with the FBI in order to conduct counterterrorism activities along the borders of the United States. As well it plays a substantial role in the ongoing Joint Inter Agency Task Force South (JIATF-S) to combat drug operations in the southern command.

International Role- CBP has a very limited international role because of its emphasis in maintaining the security of the borders, ports, and shores of the United States.

Federal Law Enforcement Training Center (FLETC)

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Mission- The Federal Law Enforcement Training Center works as an interagency training facility to more than 90 government agencies, and also provides training and technical assistance to state, local, tribal, territorial, and international law enforcement entities. FLETC provides premier training in several programs such as drug enforcement, human trafficking, and illegal good detection. Primarily it focuses on advanced programs that teach and reinforce law enforcement skills of investigation.

Structure- The FLETC is headquartered in Glynco, Ga. where the majority of training is done but also operates residential training sites in Artesia, N.M. and Charleston S.C. The FLETC also operates a non-residential in-service re-qualification and advanced training facility in Cheltenham, Md., for use by agencies concentrated in Washington, D.C.

Budget- Counternarcotics Spending for FLETCBudget Authority (In Millions)

FY 2011 FY 2012 FY 2013Final Enacted Request

Drug Resources by Function ($) ($) ($)International 0.478 0.485 0.463

Investigations 45.853 46.542 44.400State and Local Assistance 1.433 1.454 1.387

Total Drug Resources by Function 47.764 48.481 46.250Drug Resources by Decision Unit ($) ($) ($)

Salaries and Expenses 47.764 48.481 46.250Total Drug Resources by Decision

Unit47.764 48.481 46.250

Source: FY 2013 Budget and Performance Summary: Companion to the National Drug Control Strategy

Cross Agency Work- By its nature FLETC works across almost all the law enforcement agencies of the federal government. Almost all federal agents will spend some time at FLETC in order to re-qualify for certain skills and abilities or to take more advanced courses in law enforcement that are offered nowhere else.

International Role- International law enforcement students can attend courses in the main FLETC in Georgia, or abroad at one of the International Law Enforcement Academies, (Thailand, Hungary, Botswana, El Salvador) and a majority of this training focuses on drug enforcement.

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Immigration and Customs Enforcement (ICE) Mission- U.S. Immigration and Customs Enforcement (ICE) is a multi-mission law enforcement agency that uses aggressive border enforcement

strategies to prevent trafficking across the United States borders. It also works dismantle related criminal transnational organizations particularly in the drug trafficking sphere. ICE enforces Title 18, 19, and 21 parts of the U.S. code to pursue these ends. As well, ICE pursues these goals by maintaining a group of Title 21 cross designated Special Agents and a multi-disciplined money laundering control program to investigate financial crimes and interdict bulk currency shipments exported out of the United States.

Structure- ICE is a multi-mission bureau, with investigative cases that cover counternarcotics, human trafficking, and illegal immigration. Three related components within ICE are its Office of Investigations (OI), Office of International Affairs (OIA), and Office of Intelligence (Intelligence. All three contribute to ICE enforcement policies that help complete its mission.

Budget- Counternarcotics Spending for ICE

Budget Authority (In Millions)FY 2011 FY 2012 FY 2013

Final Enacted RequestDrug Resources by Function ($) ($) ($)

Intelligence 13.776 16.967 16.253International 7.112 7.275 6.882

Investigations 483.652 499.283 479.995Total Drug Resources by Function 504.540 523.525 503.130Drug Resources by Decision Unit ($) ($) ($)

Salaries and Expenses – Immigration Enforcement 504.540 523.525 503.130Total Drug Resources by Decision Unit 504.540 523.525 503.130

Source: FY 2013 Budget and Performance Summary: Companion to the National Drug Control Strategy

Cross Agency Work- ICE is involved in a number of counter trafficking initiatives such as Organized Crime Drug Enforcement Task Forces (OCDETF), High Intensity Drug Trafficking Areas (HIDTAs), Drug Enforcement Administration’s (DEA) Special Operations Division (SOD) and the Border Enforcement Security Task Force (BEST) initiative.

International Role- The OIA acts as DHS’ primary component for international security and as such coordinates international investigations involving transnational criminal organizations and serving as ICE’s liaison to foreign counterparts in local government and law enforcement. Based on memorandum all foreign narcotics investigations are coordinated with the DEA.

Office of Counternarcotics Enforcement (CNE) Mission- Originally founded to coordinate the counternarcotics policy of all Department of Homeland Security agencies. In addition, the director was

mandated with providing a report to the security of DHS upon the goals and progress of this mission. Structure- Applied its coordination and function to all agencies of DHS to promote this common goal. Budget- The FY2013 budget authority requested is $0 because it has since been terminated as an agency and consolidated into the Office of Policy. Cross Agency Work- By its nature it functioned across all involved agencies in counternarcotics. International Role- There is none currently.

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Analysis & Operations (O&A): Office of Intelligence and Analysis (I&A) Mission- Intelligence and Analysis’ (I&A) mission is to provide DHS with the intelligence and information necessary to keep the homeland safe,

secure, and resilient. I&A has the specific role of intelligence collector and sharer for DHS amongst the Intelligence Community (IC), Federal entities, state, local, tribal, territorial organizations (SLLT), and nontraditional partners. This includes understanding threats to the U.S. through intelligence analysis, collecting information, and intelligence support to homeland security missions.

Structure- The Office of Intelligence and Analysis is within the bureau of analysis and operations. I&A serves as a two way interface between the IC and SLTT for intelligence and information sharing as related to homeland security. It uses a unique blend of collection and analysis to produce homeland security specific products for its own operations. This is conducted by the Under Secretary for Intelligence and Analysis, who leads I&A and acts as the Department’s Chief Intelligence Officer responsible for handling the entire DHS Intelligence Enterprise (IE).

Budget- The total budget authority for all of Analysis and Operations (it is not broken down into specifically Intelligence and Analysis) was requested as $322M in the President’s Budget for FY2013. This was a decrease of $16M from the previous year, and reflects a general decrease in federal spending.

Cross Agency Work- I&A works extensively with the wider intelligence community, and will share much of its homeland security specific analysis with other related agencies to help coordinate operations. As well, as the intelligence service for the department its reports and intelligence is disseminated across several of DHS’ different agencies.

International Role- I&A has no specific international role other than intelligence collected in foreign countries by fellow DHS agents, and any collected or analyzed intelligence that may relate to transnational criminal organizations.

U.S. Coast Guard Mission- The leading steward of America’s maritime safety and security, the United States Coast Guard (USCG) that enforces all necessary laws and

international conventions on, under, and over the high seas and waters subject to the jurisdiction of the United States, including the U.S. territorial seas, contiguous zone, and the Exclusive Economic Zone. A significant part of its security policy is the Coast Guard’s drug interdiction objective to reduce the flow of illegal drugs entering the United States by denying smugglers access to maritime routes. The USCG strategy relies upon the availability and presence of naval assets to deny access of smuggling routes and maritime zones in order to deter trafficking activity. As well, it strengthens ties with source and transit zone nations to increase their willingness and ability to reduce trafficking through or near their sovereign boundaries, including their territorial waters, and supports interagency and international cooperation in order to combat drug smuggling by transnational organizations.

Structure- The USCG is the fifth branch of the United States military but resides within the Department of Homeland Security due to its role as a law enforcement and regulatory agency with broad domestic legal authorities. Its major programs include Maritime Security Operations, Maritime Law Enforcement, Maritime Prevention, Maritime Response, Defense Operations, and Marine Transportation System Management.

Counternarcotics Spending for USCG, Source: FY 2013 Budget and Performance Summary: Companion to the National Drug Control StrategyBudget Authority (In Millions)

FY 2011 final FY 2012 enacted FY 2013 requestDrug Resources by Function ($) ($) ($)

Interdiction 1,405.661 973.239 1,122.339R & D 2.395 4.050 2.559

Total Drug Resources by Function 1,408.056 977.289 1,124.898Drug Resources by Decision Unit ($) ($) ($)

Acquisition, Construction and Improvements 651.814 254.564 401.920Operating Expenses 739.622 703.897 705.361

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R & D 2.395 4.050 2.559Reserve Training 14.225 14.778 15.058

Total Drug Resources by Decision Unit 1,408.056 977.289 1,124.898

Cross Agency Work- The USCG works most extensively with the Department of Defense through the Navy by placing Law Enforcement Detachments (LEDETS) on Navy and allied ships in order to conduct drug seizures (strictly the jurisdiction of the USCG).

International Role- The Coast Guard works extensively with foreign nations and their militaries and law enforcements in order to coordinate greater marine security and patrolling in order to combat illegal trafficking. As well, USCG will act in an advisory and training role for foreign forces in order to raise their abilities so that they can become more effective partners in cooperative law enforcement efforts.

Human Trafficking Issue Initiative The U.S. Department of Homeland Security is responsible for investigating and prosecuting cases of human trafficking within the United States. In

this capacity, it also provides relief for victims and immigration assistance to trafficking victims. Multiple agencies work to meet these goals, DHS specifically has started the Blue Campaign in 2010 to unify its separate components into a combined

effort to halt human trafficking both within and without the United States. Victim assistance takes one of three forms. The T-visa allows victims to remain in the United States for four years in a non-immigrant status, and may

apply for lawful residence after 3 years in order to allow them the chance to help prosecute cases and immigrate into America. Another way is Continued Presence by which victims who are potential witnesses may be given a DHS grant for continued presence as an alien with work authorization, under the condition they leave after the conclusion of the case. The final form this takes is a U-visa by which victims of trafficking receive nonimmigrant status if they have suffered physical or mental abuse and/or can help prosecute a case in order to remain in country and after 3 years apply for permanent resident status.

INTELLIGENCE COMMUNITY“We are the nation’s first line of defense. We accomplish what others cannot accomplish and go where others cannot go.”

Department of Defense Intelligence Budget Function ($ in thousands)Year FY2011 FY2012 FY2013Total 185,350 202,216 231,206

This budget represents the budget function for intelligence agencies within the Department of Defense. Intelligence budgets are typically classified, this budget was de-classified as part of a revision of DoD classification policy. The budget is used for counter-narcotics intelligence support and analysis, signal intelligence collection and processing, Special Operations command

and control programs, and intelligence technology. Executive Order 12333 on December 4th, 1981 extended the powers and responsibilities of the Intelligence Community to include counter-trafficking.

CIA: Presidential Decision Directive 42 on October 22nd, 1995 engaged the CIA against transnational crime. Three offices involved in international trafficking are the Crime and Narcotics center (CNC) and the Office of Transnational Issues, and the Weapons,

Intelligence, Nonproliferation, and Arm Control Center. The CIA analyzes, supports, and conducts counter-narcotics operations to protect US national security.

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o Keeps policymakers informed on both short-term events and long-term trends in counter-narcotics. The CIA was the first agency to analyze drug use and flow in Brazil.

o Identifies individuals and organizations who are involved in narcotic operations. This information is used to assist law enforcement and other counter-narcotic operations. Information given to the DEA about drug movements in the Quintana Roo region led directly to the arrest of two major drug traffickers.

o Provides counter-narcotics specialists from both home and the field to aid operations and policy. Wrote a report on the vulnerabilities of criminal enterprises in the international drug trade, the Director of the Office of National Drug Control

Policy integrated it into US counter-narcotics policy.o Technology and geographic analysis provide data on illicit crops. This can be used in operations and by policymakers.

The CIA is not as involved in human trafficking, but makes contributions through collecting and providing data and expertise.o Sent human trafficking expert to State in 2002 to help draft the Trafficking in Person report.

Arms trafficking programs mostly revolve around WMDs and other advanced weapons. However, the CIA does monitor production, deployment, and country transfers of small arms.

DoD Intelligence: The National Security Agency (NSA) collects and deciphers communications between drug trafficking organizations. The NSA uses this intelligence

to contribute towards the disruption and dismantling of organized narcotics trafficking in Latin America. o Provides policy recommendations to government policymakers and law enforcement agencies.o Briefs agencies on threats to their information systems and networks.o Provides communication security (COMSEC) to Joint Interagency Task Forces East and West.

The Defense Intelligence Agency (DIA) provides intelligence on national security interests involving the US military, such as trafficking in Latin America.o A member of the Southwest Border Intelligence Integration Working Group, the DIA helps provide data on narcotics, human, and small arms

trafficking.o Conducts arms control monitoring in Latin America.

The National Geospatial-Intelligence Agency (NGA) gives intelligence input to DoD and DHS counter-narcotics operations.o Member of the El Paso Intelligence Center. Works with DEA, FBI, ATF, CBP, ICE, and the Coast Guard.

U.S. DEPARTMENT OF THE TREASURY (ARASH KARIMI)

Terrorism and Financial Intelligence and International Affairs Appropriations ($ in Thousands)

Year 2006 2007 (Ann-CR) 2008 2009 2010 2011 (Ann-CR) 2012 2013 (Ann-CR) 2014 (Est.)

Total BA 71,231 70,844 101,017 108,008 111,860 161,586 159,277 160,246 153,213

IA* 31,691 31,581 44,242 45,910 47,249 61,786 59,277 59,645 55,475

TFI 39,540 39,263 56,775 62,098 64,611 99,800 100,000 100,601 97,738

Source: FY2006-2014 Budget in Brief Treasury Department; http://www.treasury.gov/about/budget-performance/budget-in-brief/Pages/default.aspx

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* The International Affairs and Economic Policy (IA) account to which money is appropriated was referred to in all budget documents before FY2012 as the Economic Policies and Programs account.

The Office of International Affairs (IA)

Organization:

The Office of International Affairs is led by Under Secretary Lael Brainard, who serves as the principal policy advisor to the Secretary and Deputy Secretary on international economic matters. In this position, Under Secretary Brainard advances the Administration's agenda of strengthening U.S. leadership in the global economy to foster growth, create economic opportunities for Americans, and address transnational economic challenges, including development and climate change.

Offices within the Office of IA Which Target Trafficking: * The Office of Development Policy and Debt* The Office of Technical Assistance* The Office of the Western Hemisphere

The Office of Development Policy and Debt

Mission:

* The Office of Development Policy and Debt leads the U.S. government’s efforts to promote economic growth and poverty reduction in developing countries through engagement with the multilateral development banks, including the World Bank and the regional development banks.

Organization: Deputy Assistant Secretary Scott Morris leads efforts on development policy and debt for Treasury.

The Office of Technical Assistance (OTA)

Mission:

* OTA’s core mission is to develop strong financial sectors and sound public financial management in countries where assistance is needed and there is a strong commitment to reform.* As the contours of a market-based financial sector emerge, Treasury's technical assistance program guides financial institutions to adopt policies and procedures which stabilize and strengthen systems so that they can respond to financial crimes, such as trafficking, and promote sustainable growth.

Treasury currently has or recently had technical assistance engagements in the following Latin American countries: Colombia; Costa Rica; Dominican Republic; El Salvador; Guatemala; Haiti; Honduras ; Jamaica; Paraguay; Uruguay

Most Recent OTA Policy Targeting Trafficking in the Latin America/Caribbean Region:

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Haiti. In 2009, OTA partnered with Haitian institutions charged with combating economic and financial crimes. This resulted in the seizure from Haitian drug traffickers of over $20 million worth of assets. In 2010, OTA plans to increase significantly its assistance to Haiti as part of the USG and international reconstruction effort.

Policy:

The Office of Technical Assistance – Economic Crimes Program:

United States Department of Treasury began providing technical assistance in the area of economic crimes in 1997 in response to a concern that financial crime, corruption, and organized criminal enterprises, in conjunction with other criminal activities, were undermining economic reforms promoted by the U. S. Government.

Treasury’s Economic Crimes Program provides assistance to countries in the development of legal foundations, policies, and anti-corruption entities to address these problems. The work is conducted in three core areas:

1. Combating trafficking, money laundering, terrorist financing and other financial crimes;2. Confronting organized crime and corruption; and 3. Reorganizing law enforcement and financial entities in developing economies to help them prevent, detect, investigate, and prosecute complex international financial crimes.

Organization:

Deputy Assistant Secretary Larry McDonald directs Treasury's technical assistance program.

Statutes:

Section 129 of the Foreign Assistance Act of 1961, as amended, authorizes the establishment of a Department of the Treasury program to provide technical assistance to governments and central banks of developing or transitional countries. This legislation also requires Treasury to prepare and submit this report on the conduct of the Treasury International Affairs Technical Assistance program by Treasury’s Office of Technical Assistance (OTA).

The Office of the Western Hemisphere

Mission:

The Office of the Western Hemisphere is responsible for economic analysis, financial diplomacy, and U.S. policy initiatives in Latin America, the Caribbean, and Canada. With coverage of 34 countries ranging from Canada to Chile, the office's priorities include:

1) Analysis of regional and country-specific economic trends, including the impact of external risks emanating from Europe and elsewhere; 2) Maintaining and deepening U.S. economic relationships and multilateral engagement throughout the Western Hemisphere;

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4) Proposing policy initiatives which eliminate financial crimes in the Western Hemisphere, these policies target everything from narcotics to human trafficking in the region.

Organization:

Leonardo Martinez-Diaz is Deputy Assistant Secretary for the region and Michael Pedroni directs the Office.

The Office of Terrorism and Financial Intelligence (TFI)

Organization:

Headed by an Under Secretary, the Office of Terrorism and Financial Intelligence (TFI) marshals the Treasury Department's policy, enforcement, regulatory, and intelligence functions to sever the lines of financial support to international terrorists, WMD proliferators, narcotics traffickers, human traffickers, money launderers, and other threats to our national security. Offices within the Office of Terrorism and Financial Intelligence:

1) Office of Foreign Assets Control (OFAC)2) Office of Intelligence and Analysis (OIA)3) Terrorist Financing and Financial Crime (TFFC)4) The Treasury Executive Office for Asset Forfeiture (TEOAF)

The Office of Foreign Assets Control (OFAC)

Mission:

* The Office of Foreign Assets Control (OFAC) of the US Department of the Treasury administers and enforces economic and trade sanctions based on US foreign policy and national security goals against targeted foreign countries and regimes, terrorists, international narcotics and human traffickers, those engaged in activities related to the proliferation of weapons of mass destruction, and other threats to the national security, foreign policy or economy of the United States.

History:

* OFAC itself was formally created in December 1950, following the entry of China into the Korean War, when President Truman declared a national emergency and blocked all Chinese and North Korean assets subject to U.S. Jurisdiction.

Resources:

* Specially Designated Nationals and Blocked Persons List (SDN List) → As part of its enforcement efforts, OFAC publishes a list of individuals and companies owned or controlled by, or acting for or on behalf of, targeted countries. It also lists individuals, groups, and entities, such as terrorists and

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narcotics traffickers designated under programs that are not country-specific. Collectively, such individuals and companies are called "Specially Designated Nationals" or "SDNs." Their assets are blocked and U.S. persons are generally prohibited from dealing with them. * Sanctions Programs → OFAC administers a number of different sanctions programs. The sanctions can be either comprehensive or selective, using the blocking of assets and trade restrictions to accomplish foreign policy and national security goals.

Sanctions Targeting Trafficking in Latin America

1) Cuba SanctionsStatutes:

(1) Antiterrorism and Effective Death Penalty Act of 1996 (AEDPA), 8 U.S.C. § 1189, 18 U.S.C. § 2339B (2) Cuban Democracy Act of 1992 (CDA), 22 U.S.C. §§ 6001-6010 (3) Cuban Liberty and Democratic Solidarity (Libertad) Act of 1996, 22 U.S.C. §§ 6021-6091 (4) Sections 5 and 16 of the Trading With the Enemy Act (TWEA), 50 U.S.C. App. §§ 5, 16

2) Counter Narcotics Trafficking SanctionsExecutive Orders:(1) 12978 Blocking Assets and Prohibiting Transactions With Significant Narcotics Traffickers (Effective Date - October 22, 1995)Statutes:(1) Foreign Narcotics Kingpin Designation Act, 21 U.S.C. §§ 1901-1908 (2) International Emergency Economic Powers Act (IEEPA), 50 U.S.C. §§ 1701-1706(3) National Emergencies Act (NEA), 50 U.S.C. §§ 1601-1651

Recent Notable Individuals/Organizations based in Latin America Targeted by Sanctions:

FY 2013 * Joaquin "Chapo" Guzman Loera Sinaloa Cartel Operatives* Meza Flores Drug Trafficking Organization* Colombian Aviation Drug Smuggle

FY 2012* Cifuentes Villa Drug Trafficking Organization* Chacon Rossell Drug Trafficking Organization

The Office of Intelligence and Analysis (OIA)

Mission:

Intelligence has played an important role in the exercise of the responsibilities and operations of the Treasury Department since the Department assumed its enforcement responsibilities in 1789. The mission and culture of Treasury's Office of Intelligence and Analysis (OIA), builds on this strong tradition of

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intelligence and national security at the Department. OIA advances national security and protects financial integrity by informing Treasury decisions with timely, relevant, and accurate intelligence and analysis. It supports this mission by:

* Producing all-source assessments and other material to identify threats and vulnerabilities in licit and illicit criminal and/or trafficking networks that may be addressed by Treasury-led action.* Delivering timely, accurate, relevant intelligence to decision-makers. This intelligence is focused on a variety of international financial crimes from terrorism to trafficking.

Organization:

* The Assistant Secretary for Intelligence and Analysis is S. Leslie Ireland.

Legislation:

* OIA created under the Intelligence Authorization Act of 2004

The Office of Terrorist Financing and Financial Crimes

Mission:

* As the policy development and outreach office for TFI, the Office of Terrorist Financing and Financial Crimes (TFFC) works across all elements of the national security community – including the law enforcement, regulatory, policy, diplomatic and intelligence communities – and with the private sector and foreign governments to identify and address the threats presented by all forms of illicit finance, such as trafficking, to the international financial system. * TFFC advances this mission by developing initiatives and strategies to deploy the full range of financial authorities to combat trafficking, money laundering, terrorist financing, WMD proliferation, and other criminal and illicit activities both at home and abroad. * Primary examples of these roles in advancing this mission is TFFC’s leadership of the U.S. Government delegation to the Financial Action Task Force, which has developed leading global standards for combating trafficking, money laundering and terrorist financing and its role in specific efforts to counter threats like proliferation, and terrorism.

Resources:

South America Financial Action Task Force (GAFISUD) → FATF Regional Body Combatting Trafficking and Money Laundering in Latin America.

* The purpose of the Financial Action Task Force of South America (GAFISUD) is to work toward developing and implementing a comprehensive global strategy to combat trafficking, money laundering and terrorist financing as set out in the FATF Forty Recommendations and FATF Nine Special Recommendations.

GAFISUD Members: (1) Argentina, (2) Bolivia, (3) Brazil, (4) Chile, (5) Colombia, (6) Costa Rica, (7) Cuba, (8) Ecuador, (9) Mexico, (10) Panama, (11) Paraguay, (12) Peru, (13) Uruguay

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Advisory Members:Organization of American States (OAS) / Inter-American Drug Abuse Control Commission (CICAD)

Treasury Executive Office for Asset Forfeiture

* The Treasury Executive Office for Asset Forfeiture (TEOAF) administers the Treasury Forfeiture Fund (TFF).* The TFF is the receipt account for deposit of non-tax forfeitures made pursuant to laws enforced or administered by it participating Treasury and Department of Homeland Security agencies. * The Fund was established in 1992 as the successor to what was then the Customs Forfeiture Fund.

The TFF participating agencies are (interagency):1) Internal Revenue Service Criminal Investigations Division (IRS-CI), U.S. Department of the Treasury;2) U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security;3) U.S. Customs and Border Protection (CBP), Department of Homeland Security;4) U.S. Secret Service (USSS), Department of Homeland Security;5) U.S. Coast Guard, Department of Homeland Security.

The Department of Justice’s (DOJ) Asset Forfeiture Program administers a separate and distinct forfeiture fund.

Statutes:

The enabling legislation for TFF (Title 31 U.S.C. 9703) defines those purposes for which Treasury forfeiture revenue may be used.18USC924: Forfeitures relating to firearms violations. [Gun Trafficking]18USC2253: Criminal forfeiture provisions related to sexual exploitation and other abuse of children. [Human Trafficking]21USC Chapter 13: Controlled Substances Act (CSA) [Narcotics Trafficking]

U.S. DEPARTMENT OF LABOR (ARASH KARIMI)

Bureau of International Labor Affairs and Wage and Hour Division Appropriations ($ in Millions)

Year 2006 2007 2008 2009 2010 2011 (Ann-CR) 2012 2013 (Ann-CR) 2014 (Est.)

Total BA 269.2 242.9 256.8 282.1 320.3 320.2 319.4 321.4 338.7

ILAB 72.5 72.5 81.1 86.1 92.7 92.7 92.3 92.9* 95.4

WHD 196.7 170.4 175.7 196 227.6 227.5 227.1 228.5* 243.3

* Annualization of PL 112-175, Source: FY2006-2014 Budget in Brief Department of Labor; http://www.dol.gov/dol/aboutdol/

The Bureau of International Labor Affairs (ILAB)

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Organization:

Acting Deputy Undersecretary for International Affairs — Carol PierAssociate Deputy Undersecretary for International Affairs — Mark A. MittelhauserActing Associate Deputy Undersecretary for International Affairs — Eric Biel

Mission:

The Bureau of International Labor Affairs (ILAB) leads the U.S. Department of Labor’s efforts to ensure that workers around the world are treated fairly and are able to share in the benefits of the global economy. ILAB’s mission is to use all available international channels to improve working conditions, raise living standards, protect workers’ ability to exercise their rights, and address the workplace exploitation and trafficking of children and other vulnerable populations.

ILAB Regions The Americas; Europe; Africa; The Middle-East; South and Central Asia; East Asia & Pacific

Active ILAB Projects in The Americas

Country Grantee Project Title Amount FY Funded Perf. Period

Bolivia Desarollo y Autogestion

Combating the Worst Forms of Child Labor $6,000,000.00 2010 12/2010-12/2014

Brazil ILO-IPEC Supporting the Achievement of a Child Labor-Free State in Bahia, Brazil

$4,900,000.00 2008 09/2008-01/2013

El Salvador ILO-IPEC Eliminating child labor in El Salvador through economic empowerment and social inclusion project

$14,000,000.00 2010 & 2011 12/2010-11/2014

Guatemala Catholic Relief Services

Education Initiative: Combating the Worst Forms of Child Labor

$4,199,601.00 2009 09/2009-3/2013

Mexico ILO-IPEC Contribution to the prevention and elimination of the worst forms of child labor

$4,750,000.00 2009 09/2009-9/2013

Peru Desarollo y Autogestion

Combating Exploitative Child Labor $13,000,000.00 2011 12/2011-12/2015

Regional Americas: Ecuador and Panama

Partners of the Americas

Project to combat child labor among vulnerable populations by providing direction education and livelihood services

$6,500,000.00 2012 12/2012 - 12/2016

Regional Americas: ILO-IPEC Project to strengthen policy and enforcement to combat child $3,500,000.00 2012 12/2012 - 12/2016

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Ecuador and Panama

labor among vulnerable populations in Ecuador and Panama

South America: Bolivia, Brazil, Ecuador, and Paraguay

ILO-IPEC Combating the Worst Forms of Child Labor $6,750,000.00 2009 09/2009-9/2013

South America: Brazil and Peru

ILO Consolidating and disseminating efforts to combat forced labor in Brazil and Peru

$5,365,865.25 2012 12/2012-12/2016

Source: Bureau of International Labor Affairs – Project Status – Americas -- http://www.dol.gov/ilab/projects/americas/project-americas.htm

Office within the ILAB Focused on Trafficking:* Office of Child Labor, Forced Labor, and Human Trafficking (OCFT)

Office of Child Labor, Forced Labor, and Human Trafficking (OCFT)

Mission:

To support the President’s and the Secretary of Labor’s labor and foreign policy objectives, meet congressional mandates, and perform public outreach by promoting the elimination of the worst forms of child labor, and increasing knowledge and information on child labor, forced labor, and human trafficking.

Resources:

Trafficking Victims Protection Reauthorization Act

On January 10, 2006, the President signed into law the Trafficking Victims Protection Reauthorization Act (TVPRA) of 2005. Section 105(b)(1) of Act directed the Secretary of Labor, acting through the Bureau of International Labor Affairs, to "carry out additional activities to monitor and combat forced labor and child labor in foreign countries."

International Technical Cooperation

Since 1995, the U.S. Congress has appropriated over $770 million to DOL’s International Labor Affairs Bureau (ILAB) for efforts to combat exploitive child labor internationally. This funding has been used by the Office of Child Labor, Forced Labor, and Human Trafficking to support technical cooperation projects to combat exploitive child labor in more than 80 countries around the world.

The Wage and Hour Division (WHD)

Organization:Administrator → Vacant

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Acting Deputy Administrator → Mary Beth Maxwell Chief of Staff → Tony Martinez

Mission:

The WHD enforces Federal minimum wage, overtime pay, record keeping, and child labor requirements of the Fair Labor Standards Act. WHD also enforces the Migrant and Seasonal Agricultural Worker Protection Act, the Employee Polygraph Protection Act, the Family and Medical Leave Act, wage garnishment provisions of the Consumer Credit Protection Act, and a number of employment standards and worker protections as provided in several immigration related statutes.

WHD Goals in Human Trafficking Investigations

* Secure the victim & employees' statutory right to compensation for work performed in the United States* Determine accurate wages due in accordance with provisions within the Trafficking Victims Protection Act of 2000, Section 112(a)(2)

Application of WHD Expertise

* WHD investigations apply:- Experience with low-wage, immigrant workers and industries- Familiarity with industry and business practices and trends under investigation- On-site investigations of establishments in industries where the potential for trafficking is high

Scope of WHD Authority

* WHD Investigators have the authority to interview individuals and request payroll records when conducting investigations of potential trafficking or other violations.* WHD Investigators can identity situations where workers may be intimidated, threatened, or held against their will

Interagency Task Force Referrals

Referrals from WHD: WHD may make referrals to other agencies and social service organizations via direct liaison or to anti-trafficking task forcesReferrals to WHD: WHD can investigate labor violations even when underlying issues do not appear to rise to the level of human trafficking.

UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT (ALEX SCEERY)“USAID has the two-fold purpose of furthering America's foreign policy interests while improving the lives of the citizens of the developing world.”

USAID Budget Function for Counter-Narcotics in Latin America ($ in thousands)

Year FY2008 FY2009 FY2010 FY2011 FY2012 FY2013Total 41,089 159,541 146,021 112,095 110,216 179,100*

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*Budget function for Latin America not available for 2013 or 2014, instead this number depicts the budget of USAID counter-narcotics worldwide

Quadrupling of budget from FY2008 to FY2009 represents a major expansion of USAID programs in Latin America and a shift from counter-trafficking priority in Afghanistan to Latin America.

Decrease in budget overtime shows nationalization of USAID programs by recipient countries. The Foreign Assistance Act of 1961 created USAID to provide economic assistance programs to developing countries. The offices involved in trafficking programs are the Bureau for Foreign Assistance, the office of Security, and the Bureau for Latin American and the

Caribbean.

USAID in Counter-Narcotics: USAID utilizes two program frameworks for counter-narcotics; Alternative Development and rule of law programs. Alternative Development programs create incentives for farmers to grow legal crops instead of illicit ones, such as coca or cannabis.

o Recommended that Alternative Development programs are part of an overarching development program.o Plan Columbia is an example of an Alternative Development program.

Columbia was responsible for 80% of the world’s cocaine production in 2004. $500 million spent on the program from 2000-2008, money used for infrastructure development, Alternative Development, and rule of law. Results mixed, supply of cocaine in US did not decrease heavily. However, 112,632 hectares of legal crops were grown by Columbian farmers

under the program, exceeding the goal of 106,936 hectares.o US currently has Alternative Development programs in Bolivia, Ecuador, and Peru.

Very successful in Peru, coca hectares went from 22,000 in 1996 to less than 2,000 in 2010. Rule of law programs help governments by strengthening their judicial and law enforcement institutions, dissuading traffickers.

o The Merida Initiative is an example of a rule of law program launched to combat drug trafficking, drug violence, and organized crime in Mexico, Haiti, and the Dominican Republic. Provides equipment, support to law enforcement and security, and economic assistance. Annual budget of $20 million, USAID helps community participation in crime prevention, community policing, and other economic and social

development programs in crime heavy areas.o Following the earthquake in Haiti, USAID provided rule of law assistance.

Established the Superior Judicial Council to provide the government with judicial oversight. Trained 100 counter-narcotics officers and imported 5 drug sniffing dogs. As a result, more drugs were seized in 2012 than previous 5 years

combined.

USAID in Human Trafficking: Latin America is not heavily active in human trafficking, USAID spends about $1.5 million/year on human trafficking programs in Latin America.

o The US uses a tier system to determine how well human trafficking is been prevented within a country. Tiers 1 and 2 indicate countries that are actively trying to prevent human trafficking and require little assistance. Tiers 2 Watch List and Tier 3 indicate high levels of human trafficking and require assistance.

o Almost all Latin American countries have Tier 2 status.o A handful of Tier 2 WL countries require USAID assistance in human trafficking prevention:

Ecuador, Venezuela, Haiti, Dominican Republic, Cuba. USAID’s Counter–Trafficking in Persons (C-TIP) program revolves around the use of prevention, protection, prosecution, and partnership.

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o In the Dominican Republic, the Ministry of Education helped distribute a survey to study how human trafficking affected children and families.o Ecuador’s Chamber of Tourism helped USAID draft a plan to prevent sex tourism, a proponent to human trafficking.

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ISSUE PAPER 1: DEFENSE CONTRACTING OVERSIGHT AND MANAGEMENT

Finding: The Department of Defense needs to improve its systems for awarding, tracking and overseeing contracts.

Scope:● The DOD’s Counter-Narcoterrorism Technology Program Office (CNTPO) located in the Special Operations Low-Intensity Conflict Directorate,

within the Counternarcotics and Global Threats Office is responsible for the majority of counternarcotics contracts.● DOD counternarcotics contracts rose from $170.9 million in 2005 to $ 293.3 million in 2009, a 72% increase.● DOD’s largest contracting category for intelligence, surveillance, and reconnaissance, ($313.2 million) make up 26% of DOD’s counternarcotics

contracts from 2005 to 2009. ● The Defense Department spent $190.9 million on aircraft-related contracts, less than 16% of its total contract spending.

Problems:There is a lack of consistency and accuracy in current contract monitoring systems.

● In 2010, DOD Deputy Assistant Secretary for Counternarcotics and Global Threats William Wechsler said the DOD’s processes for managing counternarcotics contracts “inconsistent, time-consuming and error prone.”

● Despite the fact that from 2005 to 2009, $170.9 million in 2005 to $ 293.3 million in 2009 (a 72% increase) management systems have not been upgraded

● DOD lacks a centralized system to collect and track CN contracting information.

There is a lack of competitiveness in the contracting award process.● The majority of DOD contracts in Latin America between 2005 and 2009 (a total of $1.2 billion) went to DynCorp, Lockheed Martin, Raytheon,

ITT, and ARINC.● During the same period, Dyncorp received $1.1 billion in CN contacts representing 36% of total regional CN contracts.

There is a general lack of transparency and oversight in CN contracting.● A 2009 DOD inspector general’s report found failures in management, surveillance, and billing processes of the Department’s Counter-

Narcoterrorism Technology Program Office (CNTPO) associated with 35 task orders that totaled $98.8 million.● A DOD OIG report found that CNTPO officials lacked proper training, maintained incomplete contract files, and failed to develop quality

assurance plans.● In one telling example, the Army awarded a contract in 2007 to supply tractor trailers in Bogota to a company that required an upfront payment of

50%. No payment was made until 2008, and the Army did not realize the contract had not been fulfilled until it was terminated in 2009.

Recommendations:1. Increase oversight of DOD’s Counter-Narcoterrorism Technology Program Office (CNTPO) through the following actions:

a. Move the CNTPO’s office space into the Pentagon to facilitate collaboration and oversight.b. Improve training and management of personnel and enforce internal controls to and increase accountability.c. Regular administrative reviews conducted by the Deputy Assistant Secretary for Procurement and take any personnel action warranted for

deficiencies.d. The OIG should conduct more frequent reviews of CNTPO.

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e. Increase staffing of CNTPO to accommodate the high capacity of contracts and avoid errors caused by overworked personnel.f. Improve technology systems and databases for tracking and acquisition systems to avoid manual entry errors.

2. Create a centralized database for DOD to track all counternarcotics contract spending to ensure proper oversight identify potential misconduct.3. Increase competitiveness in the contracting process by eliminating no-bid contracts and offering equal opportunities for winning contracts to

several companies rather than a select few that continue to receive poor reviews.

ISSUE PAPER 2:  CROSS AGENCY TASK FORCES

Finding: DOJ and DHS need to identify the amount of resources used to support task forces and identify areas of mission and operational overlap to improve efficiency and address gaps.

Problem: Since September 11, 2001, there has been an increase in information sharing between law enforcement and intelligence agencies.  As a result, many inter-agency mechanisms for collaboration have been created.  With respect to counter-trafficking, there are currently at least 12 multi-agency initiatives (referred to herein as “task forces”) between the DOJ and DHS.  However, the effectiveness and need for all of these task forces is unclear.     

1. There is currently no way to determine the benefits of task forces relative to their costs because of a lack of an organized budget for each task force.  Two examples include:

El Paso Intelligence Center : Officials from the DEA, ATF, FBI, DHS, and intelligence community support the operation of this task force. No comprehensive budget is available, and the individual budgets of each agency are not sufficiently detailed to determine how much is spent on the Intelligence Center.   

Organized Crime Drug Enforcement Task Forces : Although the OCDETF Program in DOJ coordinates funding for DOJ agencies’ participation in these task forces, the amount of resources dedicated to OCDETFs by other agencies such as DHS is unknown.  Thus it is difficult to determine the aggregate amount of resources used to support OCDETFs.  

2. There are several task forces with significantly overlapping missions.  In some cases this may promote thorough investigations, but given the lack of cohesive budgeting and accountability for many task forces, it is difficult to determine which ones are effective and which are unnecessarily duplicative.  For example:

DHS Integrated Border and Enforcement Teams and the Border Enforcement Security Task Forces : In December 2010, the Government Accountability Office released a report citing concerns of overlap amongst task forces in areas where two IBET and four BEST teams operated.  The overlap concerns were because certain criminal and transnational organizations do not limit their activities to a specific geographic area while these teams do.  Also, some IBET and BEST task forces were established in the same area while conducting such similar missions that they were creating duplication.     

Recommendations: 1. The lead agency of each task force should:

Determine the total amount of resources that are being dedicated to task force activities from all participating agencies.

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Define the scope and in some instances geographic area for each task force.

2. The DOJ and DHS Offices of the Inspector General should conduct a joint review of the departments’ shared task forces in order determine areas of task force overlap that would not be identified by a single department’s OIG.

ISSUE PAPER 3: DOS CONTRACTING OVERSIGHT AND MANAGEMENT

Finding: The Department of State needs to improve its system for awarding, tracking and overseeing contracts.

Problems:There is a lack of consistency and accuracy in current contract monitoring systems.

The State Department lacks a centralized system to collect and track CN contracting information. State Department relies on the Federal Procurement Data System and information from posts to track its overall contracting. There is no uniform system for evaluation of whether CN contracts are achieving their goals.

There is a lack of competitiveness in the contracting award process. The majority of contracts in Latin America between 2005 and 2009 went to DynCorp, Lockheed Martin, Raytheon, ITT, and ARINC. During the same period, Dyncorp received $1.1 billion in CN contacts representing 36% of regional CN contracts. During this same period, the State Department said it awarded a $2.1 million no-bid contract to “miscellaneous foreign contractors” to purchase

pickup trucks in Bolivia because “the source was unique” but did not elaborate.

There is a general lack of transparency and oversight in CN contracting. State has given Dyncorp several poor reviews including its consistent over use of background investigations and its failure to return government

property. State does not maintain central records of disputed payments since complaints are handled at embassies. Alaska Native Corporations received sole-source, unlimited-value contracts without justification or approval, including nearly $37 million to

Olgoonik for meal and “personnel support” services in Bolivia.

Recommendations:1. Create a centralized database to track all counternarcotics contract spending to prevent overlap with other departments and identify deficiencies.2. Increase competitiveness in the contracting process by eliminating no-bid contracts and offering equal opportunities for winning contracts to

several companies rather than a select few that continue to receive poor reviews.3. Enforce justification and approval mechanisms to eliminate wasteful spending and further increase competition among contracts.4. Increase transparency by specifically identifying contracting partners; stop listing entities as “miscellaneous foreign contractors” and contracts for

“miscellaneous commodities, supplies, and/or services.”

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This is very comprehensive and detailed. It might have made sense to organize it by type of trafficking, but that would have made organizing the data even more complex, since it is hard to sort out trafficking from some of it. But a very nice job by all.

PROJECT GRADE: A