FinCEN Issues Alert on Cross-Border Bulk Cash Smuggling

FinCEN warned financial institutions to identify and report transactions "potentially related to cross-border smuggling of bulk cash." 

In an alert, FinCEN reported that transnational criminal organizations ("TCOs") are smuggling large volumes of US currency into Mexico and repatriating the same cash—under the guise of legitimate business proceeds—back into the US via armored car services, air transport and funnel accounts. FinCEN said the funds are then deposited into US banks or money services businesses and may be wired back to Mexico or used to purchase goods in trade-based money laundering schemes.

The Alert: (i) explained the methodologies associated with these operations, (ii) highlighted potential red flags and (iii) reiterated Bank Secrecy Act reporting obligations.