By AML Intelligence Correspondents
MORE than 100 U.S. money services businesses (MSBs) operating along the southwest border of the US are being targeted by FinCEN.
The MSBs are being examined for potential non-compliance with regulations designed to detect money laundering and combat illicit finance, the agency said.
So far the operation has resulted in six notices of investigation being issued, dozens of examination referrals to the Internal Revenue Service (IRS), and over 50 compliance outreach letters.
“The Treasury Department is utilizing all tools to stop terrorist cartels, drug traffickers, and human smugglers,” said Secretary of the Treasury Scott Bessent.
“This sweeping operation will help root out potential cartel-related money laundering from the U.S. financial system.”
The agency said it is now “applying high-performance data processing to uncover illicit networks and protect the U.S. financial system from evolving threats.”
Treasury’s modernization efforts have strengthened FinCEN’s ability to transform fragmented financial information into reliable, decision-grade leads at scale. This commitment to technological advancement has enabled FinCEN to launch this first-of-its-kind, data-driven enforcement operation to enhance the safety of the American public.
MSBs operating along the southwest border can face elevated exposure to illicit activity, including the laundering of proceeds from drug trafficking, smuggling of illegal aliens, and other serious crimes. This operation is consistent with the recent directive to secure the border and to pursue the total elimination of Cartels and Transnational Criminal Organizations.
The actions taken to date are “tiered actions are designed to address the money laundering vulnerabilities created by MSBs that appear to be non-compliant with the Bank Secrecy Act,” FinCEN said in a statement.
“MSBs on the receiving end of these actions are on notice that Treasury will not tolerate Bank Secrecy Act violations that could put Americans at risk. This data-driven operation is based on a review of over one million Currency Transaction Reports and 87,000 Suspicious Activity Reports, which financial institutions are required to submit to FinCEN to provide highly useful data to law enforcement,” the agency added.
Follow up actions may include civil money penalties, pursue civil injunctive actions, issue warning letters, and make referrals to criminal authorities for willful violations of the Bank Secrecy Act.
MSBs, including those operating along the southwest border, were reminded that they must:
- develop, implement, and maintain effective, risk-based anti-money laundering/countering the financing of terrorism programs;
- verify customer identification as needed to fulfill Bank Secrecy Act reporting requirements;
- monitor transactions for suspicious activity and file timely Suspicious Activity Reports;
- file timely Currency Transaction Reports for transactions exceeding reporting thresholds; and
- ensure adequate oversight of agents, branches, and third-party service providers, as applicable.
The Treasury said it is coordinating closely with the Homeland Security Task Force, the Internal Revenue Service, and both law enforcement and regulatory partners at the state and federal levels.
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