On December 22, FinCEN announced a multi-tiered operation targeting more than 100 money services businesses (MSBs) operating along the southwest border for potential noncompliance with BSA/AML regulations. The operation resulted in six notices of investigation, dozens of examination referrals to the IRS, and more than 50 compliance outreach letters. The announcement stated that FinCEN based its actions on a review of over one million currency transaction reports and 87,000 suspicious activity reports, aiming to address vulnerabilities that could enable money laundering linked to drug trafficking, human smuggling, and other crimes.
FinCEN noted its operation is ongoing and leverages advanced data processing technology to identify illicit networks and strengthen national security. The agency highlighted its coordination with the IRS and law enforcement partners, warning that noncompliant businesses may face civil money penalties, injunctive actions, and criminal referrals. The announcement reminded MSBs that BSA/AML rules require effective risk-based compliance programs, customer identification, transaction monitoring, timely reporting, and oversight of agents and service providers.
[View source.]
