Financial evidence is one of the clearest, most reliable indicators of where and when a crime was committed, who benefited and where justice should be served.
When the average person thinks about evidence in criminal investigations, they likely picture fingerprints, surveillance video and witness interviews. Bank statements may not even cross their minds. However, financial records can be the proof investigators need to obtain a conviction and bring down an entire criminal network.
The ability to turn raw financial data into case-making evidence should be standard tactical equipment in every investigator’s toolbox. Unfortunately, due to the complexity and time-consuming nature of traditional analysis methods, this evidence often falls by the wayside or fails to garner the level of attention it warrants in criminal cases.
Technology can equip investigators to properly handle this valuable information, reduce the analysis timeline and deliver actionable, objective insights.
The importance of following the money
Arrests of individual perpetrators are important, but they can often leave the wider criminal network untouched. Following the money allows investigators to cripple the enterprise by identifying more accomplices and cutting off their funding. Criminals can regroup after a single arrest, but it’s difficult to keep the operation running when their accounts are empty and many of them are behind bars.
Money trails offer a clear, objective lens into how a crime was organized, who profited and where the proceeds went. By tracing funds from illegal activity to specific assets — like bank accounts, vehicles or real estate — investigators establish the direct connection required to legally seize accounts and property and to thwart the network’s ability to rebuild.
The Financial Crimes Enforcement Network (FinCEN) 2023 Year in Review shows the evidentiary value of financial data, particularly that collected under the Bank Secrecy Act (BSA), which mandates financial institutions report certain transactions. FinCEN reported that 94% of users who performed a query in its BSA portal found data that supported an ongoing investigation. Another 94% said the information revealed previously unknown details, highlighting how financial data opens new leads.
It’s easier to understand if we look at a real-life example of financial evidence in action. Investigators responded to a hotel for a situation involving underage girls. Rather than closing the investigation after rescuing the girls and arresting the suspects, they subpoenaed payment records. The documents revealed consistent patterns of money moving from buyers to the victims and eventually to an individual in a different state. Multiple women and girls from all over the country had been sending money to that person.
The financial data painted a clear picture: This was a multi-state trafficking ring. The link between the fund movements and criminal activity allowed law enforcement to seize assets from the criminals, ultimately dismantling the operation by removing the financial support.
However, we don’t always see this outcome because the process of obtaining, preparing, analyzing, interpreting and articulating a compelling narrative based on financial evidence is exceptionally complex.
The challenges of using financial data
Law enforcement officers are trained to work with immediate, visible criminal activity, such as physical evidence from the scene and witness interviews. They are typically much less familiar with financial documents and what suspicious money movement looks like.
Financial investigations also generate a high volume of data that requires significant time and resources to prepare and analyze. Investigators are already juggling multiple cases and extreme time constraints.
In many of these investigations, law enforcement does not have a specific scheme or set of red flags in mind. Instead, they are searching for patterns without predefined parameters. Without the proper training or context, investigators face a mountain of data with no clear starting point. As a result, many investigative teams lack the capacity to take on the task.
Additionally, legal constraints surround the use of financial records. Federal laws protect a citizen’s right to financial privacy and make Suspicious Activity Reports (SARs) confidential. When collected and processed properly, the information is permissible in court, but the procedural requirements can slow down or complicate the investigative process, deterring investigators from following the money trail.
These legal barriers are compounded by a disconnect in how law enforcement and financial institutions operate. They speak different “languages,” rely on different systems, and prioritize different outcomes. This can make collaboration feel strained or even adversarial.
As a result, many promising leads go unpursued, not due to a lack of will but because of systemic barriers that make financial investigations seem out of reach.
Adding financial intelligence to investigators’ toolboxes
New technology makes financial evidence analysis more accessible to investigators, without special training. When investigative teams have access to verified financial intelligence (VFI) technology, they can follow the money within their standard processes.
Data preparation is an onerous undertaking. Traditional processes require teams to sort, enter, verify and reconcile all the bank and brokerage statements, checks, and deposit slips manually, which takes many days, weeks, or even months. VFI tools automate these tasks, extracting the data, flagging inconsistencies, matching deposits, payments, and transfers, and even categorizing the sources and uses of funds. Preparation is completed in hours rather than days or weeks, making it possible to analyze a more comprehensive dataset than what is realistic with manual processes.
VFI tools analyze the data to identify suspicious and atypical transactions with precision and accuracy and deliver the information in a format that even non-experts can understand. Visualization capabilities literally show where the money went, telling an objective, time-stamped story all tied back to the original evidence. Investigators can use this analysis to build and prove their case.
The findings from this in-depth analysis of the comprehensive financial history hold up in court better than subjective informant tips and witness testimony. Prosecutors can confidently present their case, backed by complete, defensible evidence.
Technology also helps investigators navigate legal regulations. VFI tools maintain a clear chain of custody and meet the procedural standard required for admissibility.
By creating standardized, easy-to-interpret outputs, VFI simplifies intelligence sharing across jurisdictions, essentially acting as a translator between law enforcement and financial institutions working together on financial investigations.
Financial evidence is one of the clearest, most reliable indicators of where and when a crime was committed, who benefited and where justice should be served. If we want to dismantle illegal organizations rather than just disrupt day-to-day criminal activity, we must normalize the analysis of banking evidence as part of everyday policing. This transition requires equipping every investigator — not just financial crime specialists — with the ability to analyze, interpret, and translate transaction data into plain-language truth. VFI technology makes it possible.
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