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Bank Secrecy Act Increasing Trend of Smuggling Currency from the U.S. into Mexico

BSA/AML, OFAC and Fraud
May 4, 2006
Summary: The Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued the attached advisory to U.S. financial institutions to guard against potential money laundering threats involving the smuggling of bulk U.S. currency into Mexico and the possible abuse of their financial services by certain Mexican financial institutions, including Mexican "casas de cambio." 

Highlights: 

  • On April 28, 2006, FinCEN issued the attached advisory to U.S. financial institutions about a potential money laundering threat concerning the smuggling of U.S. currency into Mexico and the potential misuse of relationships with U.S. financial institutions by certain Mexican financial institutions, including Mexican casas de cambio. 
  • U.S. law enforcement has observed a dramatic increase in the smuggling of bulk cash proceeds from the sale of narcotics and other criminal activities from the United States into Mexico. 
  • FinCEN, the Department of the Treasury, the Bureau of Immigration and Customs Enforcement, and the Drug Enforcement Administration have identified various activities that may be associated with this currency smuggling trend. 
  • FinCEN issued the attached advisory to assist U.S. financial institutions in complying with their obligations under the Bank Secrecy Act. This advisory does not mean that U.S. financial institutions should curtail business with currency exchangers or other money services businesses. 
  • Please distribute this information to the appropriate personnel in your institution. 

Distribution: 
FDIC-Supervised Banks (Commercial and Savings) 

Suggested Routing: 
Chief Executive Officer 
BSA Compliance Officer 

Note: 
FDIC Financial Institution Letters (FILs) may be accessed from the FDIC's Web site at www.fdic.gov/news/financial-institution-letters/2006/index.html.
To receive FILs electronically, please visit http://www.fdic.gov/about/subscriptions/fil.html.
Paper copies of FDIC FILs may be obtained through the FDIC's Public Information Center, 
801 17th Street, NW, Room 100, Washington, DC 20434 (1-877-275-3342 or (703) 562-2200). 

Additional Related Topics:

  • Bank Secrecy Act
Attachment(s)
Related Topics
Bank Secrecy Act

Last Updated: May 4, 2006