The United States Department of the Treasury has issued a new directive warning money service businesses (MSBs) to increase monitoring of cross-border transfers linked to individuals without legal status.
The memo, released through the Financial Crimes Enforcement Network, outlines new reporting expectations and signals tougher enforcement targeting remittances suspected to be tied to illicit activities including unlawful employment.
In the alert titled FinCEN Alert on Cross-Border Funds Transfers Involving Illegal Aliens, the agency said it is urging money services businesses to stay vigilant when handling transfers connected to individuals without legal immigration status.
“The U.S. Department of the Treasury’s (Treasury) Financial Crimes Enforcement Network (FinCEN) is issuing this Alert to urge money services businesses (MSBs)1 to be vigilant in detecting, identifying, and reporting suspicious activity connected to cross-border funds transfers2 involving illegal aliens, i.e., individuals without legal status in the United States.
“MSBs are generally required to file a suspicious activity report (SAR) for a transaction that involves at least $2,000 and that the MSBs know, suspect, or have reason to suspect is relevant to a possible violation of law or regulation; 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,”they stated
FinCEN said the alert is part of a broader push by the US Treasury to stop individuals without legal status from exploiting the country’s financial system. The agency warned that some of these individuals attempt to move funds obtained through illegal activity, including shifting the money across borders to avoid detection.
It added that the directive aligns with Executive Order 14159, Protecting the American People Against Invasion, which states that illegal aliens “present significant threats to national security and public safety” and calls for stronger action to “dismantle cross-border human smuggling and trafficking networks.”
FinCEN said the move follows a series of steps taken this year to address rising concerns about cross-border financial activity involving criminal organisations.
The treasury cited data from the Bureau of Economic Analysis, showing that personal remittances from US-based immigrants to foreign residents exceeded $72 billion in 2024. While emphasising that most of these transfers are legitimate, the agency said low-value transfers are also used to support terrorist financing, drug trafficking, and other illicit activity.
“While the vast majority of remittances from the United States are legitimate and can provide critical financial support to family members abroad, FinCEN previously cautioned that malign actors have used low-dollar cross-border funds transfers to facilitate or commit terrorist financing, narcotics trafficking, and other illicit activity,” they stated
The FinCEN alert comes amid a broader policy shift announced by President Donald Trump, who outlined sweeping changes to U.S. immigration and benefits rules.
Trump declared a permanent pause on migration from “Third World Countries”. He also announced the termination of federal benefits and subsidies for noncitizens and called for the removal of individuals who are deemed not to be net assets to the United States or incompatible with national interests.
As part of the policy, the administration ordered a review of all asylum approvals and Green Cards granted under previous administrations for citizens of 19 countries.
Trump framed these measures as a necessary step to address illegal or disruptive populations in the country.