The U.S. Department of the Treasury has launched an enforcement operation targeting more than 100 money services businesses operating along the southwest border.
They were hit for potential violations tied to money laundering and illicit finance.
The effort is being led by the Treasury Department’s Financial Crimes Enforcement Network, which oversees compliance with the Bank Secrecy Act for nonbank financial institutions, including money transmitters, currency exchangers, and check cashers.
Treasury said the review focuses on businesses operating in high-risk areas near the U.S.-Mexico border that may be exposed to proceeds from drug trafficking, human smuggling, and other criminal activity.
According to FinCEN, the operation has resulted in six notices of investigation, dozens of examination referrals to the Internal Revenue Service, and more than 50 compliance outreach letters.
Treasury Secretary Scott Bessent said the enforcement effort follows direction from President Donald Trump to disrupt cartel-related financial activity and strengthen border security.
Treasury said the actions are intended to address vulnerabilities created by money services businesses that appear to be out of compliance with federal anti-money-laundering laws.
FinCEN said the operation is based on an analysis of more than 1 million Currency Transaction Reports and about 87,000 Suspicious Activity Reports submitted by financial institutions.
The department said the review remains ongoing and could lead to civil penalties, civil injunctions, warning letters, or referrals to criminal authorities for willful violations of the Bank Secrecy Act.
FinCEN said it is coordinating with the Homeland Security Task Force, the Internal Revenue Service, and state and federal law enforcement and regulatory partners.
The federal probe is using advanced data processing technology to identify illicit financial networks and convert large volumes of financial data into investigative leads.
The southwest border operation follows a separate enforcement Treasury move in mid-November targeting cartel-related money laundering networks operating in Mexico and Europe.
The Office of Foreign Assets Control and FinCEN, working with the government of Mexico, sanctioned 27 people and entities tied to the Hysa Organized Crime Group and proposed measures to sever 10 Mexico-based gambling establishments from the U.S. financial system.
Treasury said the group used gambling venues and other businesses to launder proceeds linked to narcotics trafficking with the consent of the Sinaloa Cartel.
As part of that action, FinCEN proposed restrictions under the USA PATRIOT Act that would block U.S. financial institutions from processing transactions involving the designated gambling establishments and impose enhanced due diligence requirements.
According to the Treasury, the November action reflected increased U.S.-Mexico cooperation to combat narcotrafficking and cartel-related financial crime.
Jim Mishler ✉
Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.
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