The Financial Crimes Enforcement Network (FinCEN), part of the U.S. Department of the Treasury, has announced a large-scale operation targeting more than 100 money services businesses (MSBs) operating along the southwest border. The initiative focuses on examining these businesses for possible non-compliance with regulations intended to prevent money laundering and other illicit financial activities.
As a result of this operation, FinCEN has issued six notices of investigation, referred dozens of cases to the Internal Revenue Service (IRS) for examination, and sent over 50 compliance outreach letters. The effort is based on a review of over one million Currency Transaction Reports and 87,000 Suspicious Activity Reports submitted by financial institutions.
"At President Trump’s direction, 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."
FinCEN stated that MSBs along the southwest border are particularly vulnerable to illicit activity related to drug trafficking and smuggling due to their location and business models. The agency emphasized that ongoing efforts may lead to monetary penalties, IRS examinations, civil injunctive actions, warning letters, or criminal referrals if violations are found.
The operation aligns with broader administration directives aimed at securing borders and eliminating transnational criminal organizations. FinCEN is working in coordination with Homeland Security Task Force members, the IRS, and other state and federal law enforcement partners.
Secretary Bessent highlighted that advancements in technology have played a key role in enabling this data-driven approach. Under his leadership, Treasury has expanded its use of high-performance data processing to better identify suspicious networks and protect the U.S. financial system.
According to FinCEN, failure by MSBs to comply with anti-money laundering regulations threatens national security by depriving authorities of important financial intelligence needed for law enforcement efforts. MSBs are reminded they must implement risk-based programs against money laundering and terrorism financing; verify customer identification; monitor transactions for suspicious activity; file required reports on certain transactions; and maintain oversight over agents and service providers.
FinCEN’s mission remains focused on safeguarding the financial system from illicit activity through analysis and dissemination of financial intelligence as part of its mandate within the Treasury Department.
