Today, the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) is issuing an Alert as part of Treasury's effort to prevent the exploitation of the U.S. financial system by illegal aliens in the United States seeking to move illicitly obtained funds. Annually over the past several years, the United States has witnessed a significant volume of cross-border funds transfers, including remittances from individuals located in the United States, and has taken multiple steps this year to highlight risks presented by cross-border financial activity.
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Money services businesses should be vigilant in identifying suspicious financial activity involving illegal aliens who present significant threats to national security and public safety," said Under Secretary for Terrorism and Financial Intelligence John K. Hurley.
This Alert is consistent with Executive Order 14159,
Protecting the American People Against Invasion. Money services businesses (MSBs) are generally required to file a suspicious activity report 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.
Of the estimated 11-14 million undocumented immigrants in the U.S., roughly 60% to 70% regularly send remittances, totaling approximately $160 billion annually -- an amount exceeding the GDP of many countries. Mexico, Guatemala, Honduras, and El Salvador alone receive over $100 billion combined.
By explicitly criminalizing funds derived from unlawful employment, the Administration aims to choke off this massive financial flow.
When these flows are severely restricted, the financial incentive to remain in the U.S. shadow economy evaporates, resulting in a collapse of the economic model of illegal immigration.
FinCEN's far-reaching powers include the ability to:
* Compel any financial institution to hand over records without a warrant (via National Security Letters).
* Unilaterally freeze assets.
* Impose civil penalties of $250,000 per transaction.
* Criminally prosecute executives for "willful blindness."