Key Takeaways
- The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has launched a multi-tiered operation targeting over 100 U.S. money services businesses (MSBs) along the southwest border for potential non-compliance with regulations designed to detect money laundering and combat illicit finance.
- The operation has resulted in the issuance of six notices of investigation, dozens of examination referrals to the IRS, and over 50 compliance outreach letters.
- FinCEN’s operation is based on a review of over one million Currency Transaction Reports and 87,000 Suspicious Activity Reports, and is designed to address money laundering vulnerabilities created by non-compliant MSBs.
- The operation is part of the Trump Administration’s efforts to secure the border and eliminate Cartels and Transnational Criminal Organizations.
- FinCEN is utilizing cutting-edge technology to target potential money laundering on the southwest border, including high-performance data processing to uncover illicit networks and protect the U.S. financial system.
Introduction to the Operation
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has announced a multi-tiered operation targeting over 100 U.S. money services businesses (MSBs) operating along the southwest border. These MSBs, which provide financial services outside of a formal bank, are being examined for potential non-compliance with regulations designed to detect money laundering and combat illicit finance. The operation is a result of Secretary of the Treasury Scott Bessent’s push for technology modernization, which has enabled FinCEN to utilize advanced technology to deliver results for the American people.
The Operation’s Goals and Results
The operation has resulted in the issuance of six notices of investigation, dozens of examination referrals to the IRS, and over 50 compliance outreach letters. These tiered actions are designed to address the money laundering vulnerabilities created by MSBs that appear to be non-compliant with the Bank Secrecy Act. The operation is based on a review of over one million Currency Transaction Reports and 87,000 Suspicious Activity Reports, which financial institutions are required to submit to FinCEN to provide highly useful data to law enforcement. FinCEN is coordinating closely with the Homeland Security Task Force, the Internal Revenue Service, and both law enforcement and regulatory partners at the state and federal levels.
The Importance of Compliance
Failure to comply with the Bank Secrecy Act deprives law enforcement and national security agencies of critical financial intelligence and increases the risk that MSBs can facilitate money laundering and other criminal activity. U.S. MSBs, including those operating along the southwest border, are reminded that they must develop, implement, and maintain effective, risk-based anti-money laundering/countering the financing of terrorism programs. They must also verify customer identification, monitor transactions for suspicious activity, file timely Suspicious Activity Reports, and ensure adequate oversight of agents, branches, and third-party service providers.
The Role of Technology in the Operation
The Trump Administration has prioritized making government more modern, effective, and efficient. Under Secretary Bessent’s leadership, Treasury has expanded its use of advanced technology to deliver results for the American people. FinCEN is now applying high-performance data processing to uncover illicit networks and protect the U.S. financial system from evolving threats. Treasury’s modernization efforts have strengthened FinCEN’s ability to transform fragmented financial information into reliable, decision-grade leads at scale. This commitment to technological advancement has enabled FinCEN to launch this first-of-its-kind, data-driven enforcement operation to enhance the safety of the American public.
About FinCEN and its Mission
FinCEN is a bureau of the U.S. Department of the Treasury, and its mission is to safeguard the financial system from illicit activity, counter money laundering and the financing of terrorism, and promote national security through strategic use of financial authorities and the collection, analysis, and dissemination of financial intelligence. FinCEN’s operation along the southwest border is a key part of this mission, and demonstrates the agency’s commitment to using all available tools to stop terrorist cartels, drug traffickers, and human smugglers.
Conclusion
In conclusion, the operation launched by FinCEN is a significant step in the fight against money laundering and illicit finance. The use of advanced technology and data analysis has enabled FinCEN to identify and target MSBs that may be non-compliant with regulations, and to take action to prevent them from facilitating criminal activity. The operation is a key part of the Trump Administration’s efforts to secure the border and eliminate Cartels and Transnational Criminal Organizations, and demonstrates the importance of compliance with the Bank Secrecy Act in preventing money laundering and other criminal activity.
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