When it comes to political fundraising, there are really only two players: For the Republicans, it’s WinRed; for the Democrats, it’s ActBlue. WinRed was the right’s answer to ActBlue, which set the standard when it came to utilizing digital tools to maximize fundraising. All Democrats use ActBlue, and it has processed billions of dollars in donations for leftist candidates and PACs.
As it turns out, ActBlue might not be so deserving of any accolades, as its possibly shady operating practices have caught the attention of some GOP lawmakers. RedState’s Brandon Morse reported back in August that whistleblowers had come forward with claims that ActBlue was “skirting campaign donation laws,” prompting the Committee on House Administration, headed by Rep. Bryan Steil (R-WI), to take action:
In a letter sent to top officials on the Federal Election Commission (FEC) on Monday, Steil urged them to “immediately initiate an emergency rulemaking to require political campaigns to verify the card verification value (‘CVV’) of donors who contribute online using a credit or debit card, and to prohibit political campaigns from accepting online contributions from a gift card or other prepaid credit cards.”
Now, 19 state attorneys general are launching their own probe, alleging that ActBlue is engaging in a money-laundering practice known as “smurfing”:
Proud to partner with 19 attorneys general in investigating whether ActBlue is facilitating “smurfing”––a type of money laundering in which donors break up large donations and submit them under different names.
Secure elections are vital to our republic.
— Attorney General Andrew Bailey (@AGAndrewBailey) October 1, 2024
Smurfing is defined as “a money-laundering technique involving the structuring of large amounts of cash into multiple small transactions. Smurfs often spread these small transactions over many different accounts, to keep them under regulatory reporting limits and avoid detection. Smurfing is a form of structuring, in which criminals use small, cumulative transactions to remain below financial reporting requirements.”
The state attorneys general are demanding answers from ActBlue’s outside counsel, arguing that “citizens deserve to know that those facilitating election-related financing are following State and federal laws.” Furthermore, they maintain it is essential to know whether or not political donations processed in large volumes by one of the nation’s leading fundraising vendors “are being solicited, made, and processed consistent with campaign finance, consumer protection, and other state and federal laws.”
If ActBlue is engaged in smurfing, that would be blatant election interference and give Democrats an unfair advantage in the all-important fundraising battle between the two parties. The Patriot Act gave law enforcement agencies the authority to curb money laundering by putting into place reporting requirements for deposits over $10,000. Given they have that authority, it’s unlikely the group of state attorneys general will stop their investigation any time soon. They have requested the answers be delivered by October 23, 2024, well in advance of Election Day.
