The Financial Crimes Enforcement Network today announced it has taken multi-tiered actions against more than 100 money services businesses along the southwest U.S. border for allegedly failing to comply with anti-money laundering regulations.
In a statement, the Treasury Department – which houses FinCEN – said MSBs along the U.S.-Mexico border face “elevated exposure to illicit activity,” including laundering funds from drug trafficking and human trafficking by drug cartels. As part of a new operation targeting MSBs along the border, FinCEN reviewed more than 1 million currency transaction reports and 87,000 suspicious activity reports. The operation resulted in six notices of investigation, dozens of examination referrals to the IRS and more than 50 compliance outreach letters.
“This sweeping operation will help root out potential cartel-related money laundering from the U.S. financial system,” Treasury Department Scott Bessent said in a video message on the operation.
