The Financial Crimes Enforcement Network (FinCEN) has issued a Notice to financial institutions detailing the methodologies, financial typologies, and red flag indicators associated with timeshare fraud orchestrated by Mexico-based transnational criminal organizations (TCOs). According to FinCEN, TCOs such as the Jalisco New Generation Cartel (CJNG) are increasingly targeting U.S. owners of timeshares in Mexico through complex telemarketing, impersonation, and advance fee schemes that can span years.

These illicit activities are used to diversify revenue streams and finance other criminal operations, including the manufacturing and trafficking of illicit fentanyl and other synthetic drugs into the United States. The Notice was issued jointly with the Treasury’s Office of Foreign Assets Control (OFAC) and the Federal Bureau of Investigation (FBI). It coincides with an OFAC sanctions action against Mexican accountants and companies involved in facilitating timeshare fraud on behalf of CJNG.

Financial institutions seeking further information about the joint Notice can contact FinCEN’s Regulatory Support Section at frc@fincen.gov.

FinCEN Notice (FIN-2024-NTC2): https://www.fincen.gov/sites/default/files/shared/FinCEN-Joint-Notice-Timeshare-Mexico-508C-FINAL.pdf

Treasury Press Release: https://home.treasury.gov/news/press-releases/jy2465