FinCEN Money Services Business Vigilance Guidance
- Here's a breakdown of the FinCEN alert regarding cross-border funds transfers and potential illicit activity involving individuals without legal status in the United States.
- The Financial Crimes Enforcement Network (FinCEN) issued an alert to money services businesses (MSBs) on November 28th, reminding them to be vigilant in reporting suspicious activity related to...
- * Issuing Agency: FinCEN (part of the Treasury Department) * Target Audience: Money Services Businesses (MSBs) * Focus: Suspicious activity related to cross-border funds transfers.
FinCEN alert on Cross-Border Transfers & Illegal Aliens
Here’s a breakdown of the FinCEN alert regarding cross-border funds transfers and potential illicit activity involving individuals without legal status in the United States.
Summary:
The Financial Crimes Enforcement Network (FinCEN) issued an alert to money services businesses (MSBs) on November 28th, reminding them to be vigilant in reporting suspicious activity related to cross-border transfers involving individuals lacking legal status in the U.S. While most remittances are legitimate, fraudsters are exploiting low-dollar transfers for illicit purposes.
Key points:
* Issuing Agency: FinCEN (part of the Treasury Department)
* Target Audience: Money Services Businesses (MSBs)
* Focus: Suspicious activity related to cross-border funds transfers.
* Concern: Fraudsters using low-dollar transfers to facilitate illicit activity.
* Reporting Requirement: msbs must file a Suspicious Activity Report (SAR) for any transaction involving at least $2,000 if they suspect a possible violation of law or regulation.
* Specific Scenarios: This includes transfers derived from unlawful employment or illicitly obtained funds by individuals without legal status.
* Context: The U.S. has seen a significant volume of cross-border funds transfers in recent years.
* Official Statement: John K. Hurley, Under secretary for Terrorism and Financial Intelligence, emphasized the need for vigilance in identifying suspicious activity involving individuals who pose threats to national security and public safety.
Relevant Data (SAR Filing Threshold):
| Threshold | Reporting Requirement |
|---|---|
| $2,000 | File a suspicious Activity Report (SAR) if suspicion of illegal activity exists. |
Links to Sources:
* FinCEN Alert
* FinCEN Press Release