The Financial Crimes Enforcement Network today issued a supplemental alert for financial institutions on suspicious activity connected to Cartel de Jalisco Nueva Generacion (CJNG) and other Mexico-based transnational criminal organizations smuggling fuel from the U.S. into Mexico in schemes involving Mexican tax evasion known as “fiscal fuel theft.”
The alert provides an overview of methodologies and financial typologies associated with these fiscal fuel theft schemes, highlights red flag indicators, and reminds financial institutions of their reporting requirements under the Bank Secrecy Act, according to FinCEN.
The alert was issued alongside an Office of Foreign Assets Control sanctions action against two Mexican nationals and nine entities tied to CJNG’s fuel smuggling schemes.
