US issues alert urging financial institutions to flag cross-border transfers involving illegal aliens

HAMILTON, Canada

The US Treasury Department's Financial Crimes Enforcement Network (FinCEN) issued an alert on Friday calling on money services businesses (MSBs) to heighten scrutiny of cross-border funds transfers involving individuals without legal status in the country.

"FinCEN is issuing this Alert as part of the U.S. Department of the Treasury’s effort to prevent the exploitation of the U.S. financial system by illegal aliens seeking to move illicitly obtained funds, including by moving those funds across the border," it said in a written alert issued.

The agency said the effort aligns with Executive Order 14159, which states that illegal aliens "present significant threats to national security and public safety" and stresses the need to "dismantle cross-border human smuggling and trafficking networks."

"FinCEN is issuing this Alert to urge money services businesses (MSBs) to be vigilant in detecting, identifying, and reporting suspicious activity connected to cross-border funds transfers involving illegal aliens," the agency said.

The alert follows a series of measures taken this year targeting illicit financial activity linked to Mexico-based cartels, several of which have been designated Foreign Terrorist Organizations. FinCEN previously issued Geographic Targeting Orders requiring MSBs in select border regions to file Currency Transaction Reports at lower thresholds than usual.