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US Targets Money Service Businesses at Mexico-US Border in AML Crackdown

Anti Money Laundering

US Targets Border Money Services in AML Crackdown

Business Honor
23 December, 2025

FinCEN investigates over 100 firms to curb money laundering linked to trafficking and illegal immigration.

In a bid to combat the issue of money laundering that stems from illegal immigration, trafficking, and human smuggling, the United States has launched an extensive probe into the activities of money service businesses that exist along the Mexico-US border. The US Treasury has confirmed that over 100 non-banking financial service providers are being investigated for the possible breach of anti-money laundering laws. The investigation is headed by the Financial Crimes Enforcement Network, commonly referred to as FinCEN. This body is focusing on money transmitters as well as currency exchange businesses, which it recognizes as high-risk for their vulnerability to financial crimes. It is estimated that these organizations have been used as conduits by criminal groups such as drug cartels and traffickers.

Experts are using sophisticated analytics to analyze financial transactions. FinCEN analyzed more than one million currency transactions and also reviewed 87,000 SAR reports. The initiative is already seeing some success, having produced six formal notices of investigation, as well as numerous referrals to the Internal Revenue Service and more than 50 compliance outreach letters sent to businesses. “The purpose of this initiative is to remove any money laundering related to cartels in our financial system,” said Treasury Secretary Scott Bessent. “The government is using every available power it has to dismantle any financial structures affiliated with either drug smuggling, human trafficking, or any other type of transnational crime.”

Bessent further mentioned that the financial sector, which includes money service businesses, is also at risk due to their handling of large amounts of cash and cross-border money transfers. This, according to the regulatory authority, needs to be closely monitored to ensure that criminal networks do not exploit the gaps. The case illustrates the increased attention of the US government on the enforcement of AML rules, especially in areas where the issues of financial crimes, illegal immigration, and conventional crimes converge. It is a warning signal for financial service organizations on the consequence of neglecting the rules.