U.S. Launches Broad Investigation into Money Transfer Firms Over Potential AML Violations

The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) has opened an investigation targeting more than 100 money services businesses (MSBs) that operate near the U.S.–Mexico border, examining potential violations of anti-money-laundering (AML) and illicit finance regulations. These firms, which facilitate domestic and international fund transfers, including remittances, were not named publicly. The operation has already produced six formal investigation notices, dozens of referrals to the Internal Revenue Service (IRS), and over 50 compliance disclosure letters.

Officials said the probe stems from a review of more than a million currency transaction reports and approximately 87,000 suspicious activity reports, with authorities seeking to determine whether these MSBs may have facilitated money laundering tied to narcotics trafficking, human smuggling, and other serious crimes. FinCEN indicated that potential enforcement actions could include civil penalties, further regulatory action, and referrals for criminal prosecution. Mexican President Claudia Sheinbaum responded by emphasizing that remittance flows are legitimate and should not be broadly criminalized.