US authorities have launched investigations into money service businesses along the Mexican border, suspecting they facilitate smuggling and illegal immigration. The multi-agency probe targets unlicensed operators allegedly channelling illicit funds that sustain cross-border human trafficking networks.
WASHINGTON — A sweeping federal investigation is underway into dozens of money service businesses operating along the United States–Mexico border, as American officials intensify efforts to choke off the financial lifelines that support human smuggling and illegal immigration networks.
According to Anadolu Agency (reporting by Michael Hernandez, 22 December 2025), the US Department of Homeland Security (DHS) confirmed a multi-agency probe focusing on “money transmitters and financial intermediaries suspected of aiding criminal cartels through remittance laundering and unregistered financial services.”
Homeland Security targets border-based money transmitters
As noted by Anadolu Agency, investigators from the Homeland Security Investigations (HSI) unit and the Financial Crimes Enforcement Network (FinCEN) have been combing through suspicious transaction records from Texas, Arizona, California, and New Mexico. Officials are working to determine whether some money services are helping funnel funds used for migrant smuggling operations along key crossing points such as El Paso and McAllen, Texas.
Citing an unnamed senior DHS official, Anadolu Agency reported that
“the investigation centres on operators suspected of violating federal anti-money laundering (AML) registration laws and failing to report large cash transactions as required by the Bank Secrecy Act.”
The official further said the probe seeks to
“disrupt the networks that move both people and criminal proceeds.”
Multi-agency effort led by ICE and FinCEN
According to Reuters correspondent Ted Hesson (22 December 2025), the initiative is part of a broader Biden administration strategy to stem the flow of irregular migration by attacking the financial infrastructure behind it. Hesson reported that Immigration and Customs Enforcement (ICE), working with the Treasury’s FinCEN, is auditing cross-border remittances over $10,000 and transactions flagged for structuring.
Reuters quoted a US official involved in the review as saying:
“We are not only interested in unlicensed or underground service providers but also in legitimate remittance companies that might be inadvertently enabling criminal flows.”
FinCEN sources, cited by Bloomberg’s Saleha Mohsin, confirmed that several operators are under scrutiny after large volumes of cash deposits in Texas border towns matched patterns linked to known smuggling routes.
Law enforcement coordination with Mexican authorities
As The Associated Press (AP) reporter Elliot Spagat highlighted, US and Mexican law enforcement agencies are collaborating more closely to track suspicious remittance patterns, particularly in high-risk sectors near Tijuana and Ciudad Juárez. Mexican regulators from the Financial Intelligence Unit (Unidad de Inteligencia Financiera, UIF) are coordinating information sharing with the US side to identify suspicious recipients of transferred funds.
In a joint statement quoted by the AP, Mexican Finance Secretary Rogelio Ramírez de la O said:
“We are committed to addressing financial crime as a shared challenge. Cross-border cooperation is vital to dismantle money channels used by both smugglers and trafficking groups.”
Focus on smuggling networks and cartel intermediaries
According to The Washington Post reporter Maria Sacchetti, the US investigation is partly rooted in intelligence linking remittance networks to organised crime syndicates such as the Sinaloa Cartel and the Jalisco New Generation Cartel (CJNG). These groups allegedly profit from human smuggling by charging “fees” to migrants or brokers who pay for safe passage into the US.
Sacchetti wrote that “HSI analysts have traced smuggling payments routed from migrant sponsors in the US to contacts in Mexico via small, local money transmitters that often escape regulatory scrutiny.”
A DHS investigator quoted in her report added:
“Shutting down those channels is essential because, without the financial ecosystem, the smugglers cannot move as freely or operate at scale.”
Unlicensed money businesses face criminal charges
As CNN’s Priscilla Alvarez noted, several small money transmitters located in border towns such as Nogales, McAllen, and Brownsville have already received federal search warrants. A few operators face potential indictment under the US Code Title 18, Section 1960, which criminalises operating an unlicensed money transmitting business.
Federal prosecutors, quoted by CNN, said these operations
“may have knowingly facilitated illicit cross-border transfers, either by turning a blind eye to smuggling proceeds or by actively helping launder money on behalf of criminal clients.”
Treasury flags gaps in regulatory compliance
A report released this month by the US Treasury Department, cited by BBC News North America correspondent Nomia Iqbal, underlined persistent weaknesses in AML enforcement against small non-bank financial entities. The report states that
“unregistered, rural or immigrant-focused MSBs remain the most vulnerable to exploitation by human smuggling and narcotics networks.”
FinCEN Director Andrea Gacki, quoted in BBC’s coverage, commented:
“The oversight system has historically focused on large financial institutions. However, smaller remittance firms can also pose systemic risk when exploited by criminal actors.”
Response from the money transfer industry
In response to the federal actions, the Money Services Business Association (MSBA) issued a statement published by The New York Times (reporting by Eileen Sullivan). The association expressed concern about broad-brush enforcement tactics, urging authorities
“to differentiate between non-compliant operators and legitimate providers serving immigrant communities.”
The statement read:
“Many legal operators support stringent AML rules. Overly aggressive crackdowns risk harming compliant businesses and low-income customers who rely on remittances for family support.”
Sullivan’s article also quoted an attorney representing several investigated firms, who said:
“Some operators inadvertently failed to update registrations or file specific reports but were not involved in criminal activity.”
Broader context of immigration and border enforcement
The probe comes amid heightened political tension over migration. As Al Jazeera’s Manuel Rapalo reported, record numbers of migrants have arrived at the US southwest border in recent months, with more than 2.4 million encounters recorded in the fiscal year 2025.
The Biden administration is under pressure from both domestic critics and regional partners to address the humanitarian and security aspects of migration. As Rapalo noted,
“The White House has sought to pair enforcement with economic and humanitarian initiatives, including expanding legal migration pathways while targeting the financial incentives that fund illicit trafficking.”
Impact on migrant communities
Los Angeles Times journalist Kate Linthicum highlighted concerns among migrant families who use money transfer services for legitimate remittances. Advocacy groups warn that heightened scrutiny could chill access to these services, especially for undocumented residents wary of identification requirements.
In an interview cited by Linthicum, Laura Martin of the immigrant advocacy group Progressive Leadership Alliance of Nevada said:
“We support cracking down on crime, but blanket investigations can harm communities that depend on remittances for daily living.”
Experts urge data-driven enforcement
Financial crime analysts interviewed by Bloomberg and Reuters called for the United States to complement enforcement with improved data analytics and community outreach. Economist David Shirk, quoted by Reuters, said:
“Regulatory reform should balance national security tasks with financial inclusion. Many of these remittance providers operate in grey zones due to inadequate financial access for migrants.”
The Center for Strategic and International Studies (CSIS) also issued an analysis suggesting that “targeted AML supervision and cross-border financial transparency tools” are more effective than blanket enforcement sweeps.
Ongoing investigation and next steps
As confirmed by DHS to Anadolu Agency, the inquiry remains active and is expected to expand further into California’s Imperial County and New Mexico’s border district. Officials declined to name the entities under investigation but emphasised that
“no legitimate business need fear scrutiny if they comply with federal reporting standards.”
FinCEN officials added that data from suspicious activity reports (SARs) filed by banks and legitimate MSBs have “played a crucial role” in identifying red flags and transaction clusters linked to smuggling hubs.
According to DHS, future enforcement actions will prioritise coordination with local law enforcement and cross-border partners to ensure lawful economic activity is not disrupted.
The US government’s probe into borderland money service businesses reflects a broader strategy to disrupt human smuggling by intercepting its financial arteries. Backed by Treasury regulators, law enforcement agencies, and international partners, the initiative underscores Washington’s evolving approach — targeting not just the movement of people, but the movement of money that enables the trade.
While authorities promise focused enforcement, immigrant communities and financial advocacy groups continue to call for balanced oversight that upholds both security and financial access for millions who rely on cross-border remittances for survival.