When it comes to political fundraising, there are really only two players: For Republicans, it’s WinRed; For Democrats, it’s ActBlue. WinRed was the right answer to ActBlue, which set the standard when it came to using digital tools to maximize fundraising. All Democrats utilize ActBlue, and it has processed billions of dollars in donations to left-wing candidates and PACs.
As it turns out, ActBlue may not deserve such an award, as its potentially shady operating practices have caught the attention of some Republican lawmakers. RedState’s Brandon Morse reported back in August that whistleblowers had come forward with claims that ActBlue was “circumventing campaign contribution laws,” prompting the House Committee on Administration, led by Rep. Bryan Steil (R-WI), to take action seize:
In a letter sent to senior Federal Election Commission (FEC) officials on Monday, Steil called on them to “immediately initiate an emergency rule to require political campaigns to verify the Card Verification Value (‘CVV’) of donors who donate online using a credit card.” – or debit cards and to prohibit political campaigns from accepting online donations from gift cards or other prepaid credit cards.
Now, 19 state attorneys general are launching their own investigations, alleging that ActBlue is engaged in a money laundering practice known as “smurfing”:
We are proud to work with 19 state attorneys general to investigate whether ActBlue promotes “smurfing” – a form of money laundering in which donors split vast donations and submit them under different names.
Secure elections are critical to our republic.
– Attorney General Andrew Bailey (@AGAndrewBailey) October 1, 2024
Smurfing is defined as a “money laundering technique in which large amounts of cash are structured into several small transactions. Smurfs often spread these small transactions across many different accounts to keep them under legal reporting limits and avoid detection. “Smurfing is a form of structuring that criminals use small, cumulative transactions to avoid complying with financial reporting requirements.”
Attorneys general are demanding answers from ActBlue’s outside counsel. argue that “citizens should know that those who facilitate election financing are following state and federal laws.” Additionally, they believe it is critical to know whether political donations made in bulk are being processed by one of the country’s leading fundraising providers “will be requested, made and processed in accordance with campaign finance, consumer protection and other state and federal laws.”
If ActBlue engages in smurfing, it 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 are given the power to curb money laundering by introducing reporting requirements for deposits over $10,000. Because they have this authority, it is unlikely that the group of attorneys general will stop their investigation any time soon. They asked that responses be submitted by October 23, 2024, well before Election Day.
