The Financial Crimes Enforcement Network (FinCEN), part of the U.S. Department of the Treasury, has announced a new operation targeting over 100 money services businesses (MSBs) along the southwest border for possible violations related to money laundering and illicit finance. The initiative follows efforts led by Secretary of the Treasury Scott Bessent to modernize technology within the department.
According to FinCEN, these MSBs, which provide financial services outside traditional banks, are being examined for compliance with regulations designed to detect and prevent money laundering. As a result of this operation, six notices of investigation have been issued, dozens of referrals made to the Internal Revenue Service (IRS) for further examination, and more than 50 compliance outreach letters sent.
“At President Trump’s direction, the Treasury Department is utilizing all tools to stop terrorist cartels, drug traffickers, and human smugglers,” said Secretary Bessent. “This sweeping operation will help root out potential cartel-related money laundering from the U.S. financial system.”
The operation uses data analysis from over one million Currency Transaction Reports and 87,000 Suspicious Activity Reports submitted by financial institutions. These reports are required under federal law and help law enforcement identify suspicious or illegal activities in the financial sector.
FinCEN stated that MSBs found non-compliant with Bank Secrecy Act requirements may face monetary penalties, IRS examinations, civil injunctive actions, warning letters, or criminal referrals if warranted. The agency is working closely with partners such as the Homeland Security Task Force and regulatory authorities at both state and federal levels.
Under Secretary Bessent’s leadership, FinCEN has expanded its use of advanced technology to improve detection of illicit networks in response to evolving threats against the U.S. financial system. This modernization effort aims to turn large volumes of fragmented data into actionable leads for law enforcement.
Failure by MSBs to comply with anti-money laundering rules can undermine national security by depriving authorities of critical intelligence needed to counter criminal activity. FinCEN reminded MSBs that they must maintain effective risk-based programs against money laundering and terrorism financing; verify customer identities; monitor transactions for suspicious activity; file required reports on large currency transactions; and oversee agents or third-party service providers appropriately.
FinCEN’s mission includes safeguarding the financial system from illicit activity through strategic use of its authorities as well as collection and analysis of financial intelligence.
