FinCEN Alerts Money Services Businesses to Scrutinize Cross-Border Transfers

The Treasury Department‘s Financial Crimes Enforcement Network (FinCEN) issued an alert Friday (Nov. 28) reminding money services businesses (MSBs) that they should be vigilant in reporting suspicious activity around cross-border transfers from people without legal status in the United States.

The alert said that while the “vast majority” of remittances from people in the U.S. to foreign residents are legitimate, fraudsters have used low-dollar cross-border funds transfers to facilitate or commit illicit activity.

It also said that MSBs are required to file a suspicious activity report (SAR) for any transaction that involves at least $2,000 and that the MSBs have reason to suspect is relevant to a possible violation of law or regulation.

The alert added that “this includes the cross-border transfer of funds derived from unlawful employment or otherwise derived from funds the MSB knows, suspects, or has reason to suspect were illicitly obtained in the United States by illegal aliens.”

The U.S. has had a “significant volume” of unauthorized immigration at its southern border in recent years, according to the alert.