• Treasury investigates 100 money service companies near the Mexico border
• FinCEN launches tech driven review of more than one million transactions
• Six investigations, dozens of IRS referrals and 50 compliance letters issued
• High risk firms exposed to laundering tied to cartels and trafficking
• Treasury vows aggressive action to block illegal money flows

The U.S. Treasury Department has opened investigations into 100 money services companies operating along the Mexico border, deploying new technology to spot potential law breaking tied to drug smuggling, human trafficking and cartel finance, according to information shared with Axios.

The effort marks a significant expansion of President Trump’s border crackdown, which has increasingly focused not only on illegal crossings but also on the financial infrastructure that enables criminal networks to profit from cross border activity.

The operation is being led by the Treasury’s Financial Crimes Enforcement Network, FinCEN, which is reviewing whether dozens of money service businesses failed to comply with anti-money laundering laws or transparency rules required under the Bank Secrecy Act.

While the companies are not regulated as banks, they provide bank like financial services and are subject to extensive reporting obligations.

So far, FinCEN has issued six formal notices of investigation, made dozens of referrals to the Internal Revenue Service, and sent more than 50 compliance outreach letters to firms identified as higher risk.

Officials said the actions reflect early findings from a system that is allowing the agency to examine data at a scale not previously possible.

According to Treasury, the initiative uses advanced analytics to process more than one million currency transactions and 87,000 Suspicious Activity Reports submitted by financial institutions. These reports are intended to flag unusual or potentially illegal transactions, enabling regulators to identify patterns that could indicate money laundering or other criminal activity.

A Treasury official described the initiative as a “data driven operation” that enhances border enforcement by targeting the financial enablers of criminal groups.

Money service firms in border regions, the agency noted, face elevated exposure to laundering risks associated with human trafficking and drug smuggling operations.

To comply with federal law, the companies must maintain accurate records, verify customer identities, file Suspicious Activity Reports when necessary and follow other transparency requirements. Firms that fail to meet these obligations can face civil penalties, injunctions or even criminal charges.

Treasury Secretary Scott Bessent said in a written statement that the operation remains active and that the department intends to use every available tool to counter cartel financing networks.

He said the initiative represents a major step in “rooting out potential cartel related money laundering from the U.S. financial system.”

The move underscores the administration’s broader strategy of using financial intelligence and compliance enforcement as a frontline tool in border security.

By scrutinizing the money flows that enable smuggling and illicit trade, officials argue they can disrupt criminal ecosystems more effectively than through interdiction alone.