WASHINGTON– Sen. Chuck Grassley (R-Iowa) today co-chaireda Senate Caucus on International Narcotics Controlhearing to examinehowshell companies facilitate transnational criminal activity.
During questioning, Government Accountability Office’s (GAO) Rebecca Shea, who leads its Forensic Audits and Investigative Service department, confirmed findings of the report Grassley issued yesterday exposing gaps in the Federal Aviation Administration’s (FAA) plane registration process. Grassley’s reports hows cartels and other bad actors have exploited FAA loopholes to register U.S. planes under phony American IDs. Shea echoed Grassley’s concerns and urged immediate action. Notably, in response to questioning from Grassley highlighting the extent of the security risks at play, Shea testified, given FAA’s current registration procedures, “I don’t think the [FAA] would know if they have or have not” taken steps to deny terrorists’ access to U.S. planes.
Watch: Opening Remarks | Questions
Grassley’s transcribed opening remarks are HERE. His questions follow.
Ms. Shea, your team compared registry data to the State Department Major Money Laundering Countries list and found 251 registrations with addresses located in these countries. Your team also compared the registry to Office of Foreign Asset Control records and found six planes registered to entities subject to U.S. sanctions.
Does the FAA have access to the same records you used to conduct your analysis?
What did the FAA tell you about its authority to deny registration to a sanctioned individual and the due diligence it conducts?
If the FAA were a private company registering aircraft in the U.S. for a $5 fee and it failed to check the OFAC registry, would it be in violation of U.S. sanctions law?
FAA Action on GAO Recommendations
Ms. Shea: Yesterday, I released a report detailing how cartels exploit lax FAA practices to register drug planes with the FAA. Your 2020 GAO report warned the FAA about these loopholes. My report cites case examples that came after your warnings.To this day, 12 of your recommended corrective actions are outstanding, despite the FAA agreeing with them.
In your experience, has the FAA been unusually slow and dangerously negligent in acting on your recommendations?
Terrorist Access to FAA Registry
Ms. Shea:In your 2020 report, you noted the FAA identified a risk that terrorists may access the FAA registry.
Can you please explain the access terrorists have to the registry, as well as their abilities to register aircraft?
Since your report, has the FAA taken any steps to deny terrorists that access?
Information Sharing with Law Enforcement
Ms. Shea: In 2020 the GAO recommended the FAA create written agreements for information sharing with law enforcement. It’s been fouryears, and the FAA still hasn’t signed an agreement.
Why did you make this recommendation?
In your opinion, is four years a reasonable period for negotiating an information sharing agreement, and are you aware of any barriers to entering this agreement?
Mr. [Don Im, Assistant Special Agent in Charge (Retired), Special Operations Division, Drug Enforcement Administration (DEA)]:You served 31 years at DEA and collaborated with other agencies.
On average, how long did it take the DEA to sign an information sharing agreement with other agencies?
-30-