By PAUL O’DONOGHUE, Senior Correspondent
FinCEN, the AML unit of the U.S. Treasury, has issued a formal alert, warning banks that Mexican cartels are smuggling cash across the border.
The alert focuses on bulk cash smuggling operations conducted by Mexico-based Transnational Criminal Organizations (TCOs) that move large sums of illicit cash across the U.S.-Mexico border.
According to FinCEN, these criminal organizations use cash smuggling and repatriation schemes to launder illicit proceeds generated in the U.S. The alert, which can be viewed [HERE], explains how TCOs move the money between the U.S. and Mexican financial systems.
FinCEN said this allows cartels to “place, layer, and integrate their illicit proceeds into the United States and Mexican financial systems”.
FinCEN director warns of cash smuggling risks
“Mexico-based TCOs generate vast sums of illicit proceeds that they launder through a number of schemes, such as bulk cash smuggling and repatriation operations highlighted in this alert,” said FinCEN Director Andrea Gacki. “The United States has zero tolerance for the TCOs’ activities.”
The alert also outlines the methodologies used in these operations and identifies red flags for financial institutions to watch for. in addition, it reminds banks of their reporting responsibilities under the Bank Secrecy Act.
This alert is part of FinCEN’s ongoing efforts to disrupt TCO revenue streams. It supports Executive Order 14157. This designates cartels and other organizations as foreign terrorist entities. Officials said this demonstrates the U.S. government’s commitment to combatting international cartels.
For more information, FinCEN encourages inquiries through their official website [HERE].
The move is the latest measure from the Trump administration against Mexican cartels. The latest alert also comes shortly after FinCEN ordered financial firms near the U.S.-Mexico border to report all cash transactions over $200.
For more information, financial firms can visit www.fincen.gov/contact. A copy of the GTO is available here.
We hope you enjoyed reading this article
If you would like unlimited access to AML Intelligence premium articles, newsletter delivered twice a week, access to our Global Bank Fines and Penalties database, free access to Boardroom Series events and much more, select one of our subscription options and become a subscriber!
