Operation Enabled by Secretary Bessent’s Push for Technology Modernization
WASHINGTON— Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced a multi-tiered operation targeting more than 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. FinCEN’s operation resulted in the issuance of six notices of investigation, dozens of examination referrals to the Internal Revenue Service (IRS), and over 50 compliance outreach letters.
“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.”
Click here to watch a video from Secretary Bessent on today's announcement.
MSBs operating along the southwest border can face elevated exposure to illicit activity, including the laundering of proceeds from drug trafficking, smuggling of illegal aliens, and other serious crimes. This operation is consistent with President Trump’s directive to secure the border and to pursue the total elimination of Cartels and Transnational Criminal Organizations.
Ongoing Border Operation Based On Data From Over ONE Million Banking Records — May result in Monetary Penalties, irs examinations, and criminal referrals
FinCEN’s operation 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. MSBs on the receiving end of these actions are on notice that Treasury will not tolerate Bank Secrecy Act violations that could put Americans at risk. This data-driven 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.
This is an ongoing operation in which FinCEN will follow the facts and, where appropriate, seek to impose civil money penalties, pursue civil injunctive actions, issue warning letters, and make referrals to criminal authorities for willful violations of the Bank Secrecy Act. 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.
Treasury Deploys Cutting-Edge Technology to Target Potential Money Laundering on Southwest Border
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.
Compliance Failures Threaten National Security
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;
- verify customer identification as needed to fulfill Bank Secrecy Act reporting requirements;
- monitor transactions for suspicious activity and file timely Suspicious Activity Reports;
- file timely Currency Transaction Reports for transactions exceeding reporting thresholds; and
- ensure adequate oversight of agents, branches, and third-party service providers, as applicable.
About FinCEN
FinCEN is a bureau of the U.S. Department of the Treasury. FinCEN’s 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.
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