Oct. 5, 2012 – Treasury’s Office of Inspector General concludes in a new report that a Bank Secrecy Act program designed to improve the collection and storage of BSA data is generally meeting schedule and cost milestones, but oversight of the program continues to be critical.
The Financial Crimes Enforcement Network, which administers the BSA, developed the BSA Information Technology Modernization Program in November 2006. Among other objectives, the program was designed to help transition BSA data from the Internal Revenue Service to FinCEN.
The OIG’s report found that, in most cases, FinCEN is meeting cost, schedule, and performance benchmarks for the program and providing appropriate oversight of contractors. However, it found that certain projects related to the program had been delayed and that FinCEN did not report $11.2 million of planning costs.
The report also noted that “potential risks still remain” in order for the program to be successfully implemented. One such risk is the interdependency between the program's component projects. The OIG points out that changes made to one project are likely impact others. Additional costs and schedule delays could also occur, the report notes.
The OIG did not make any specific recommendations in the report, but it did emphasize the importance of continued oversight.
The report is available to view online.