Trump Admin Investigating Money Lending Companies Across Southern Border Over Cartel Ties

The U.S. Treasury Department is investigating dozens of money lending companies across the southern border over potential cartel ties, according to a new report.

Axios detailed that the office is using new technology to spot potential law-breaking activities. Led by the Financial Crimes Enforcement Network (FinCEN), it examines whether the businesses violated or didn't comply with anti-money laundering laws and rules.

The outlet added that so far the unit has issued over 50 compliance outreach letters, dozens of referrals to the IRS and six notices of investigation. It noted that businesses are required to maintain clean records, verify customer ID and file Suspicious Activity Reports, among other rules. Those who don't can face civil fines, injunctions or criminal charges.

The Trump administration has already gone after financial entities over potential cartel ties earlier this year. In June, the Treasury Department announced sanctions against three Mexican financial institutions alleging they were used by drug cartels to launder millions of dollars and to facilitate payments for precursor chemicals used in the production of fentanyl.

In the months that followed the announcement, the Mexican government launched investigations into CIBanco, Intercam Banco and the brokerage firm Vector Casa de Bolsa. These actions convinced the Treasury Department to grant a temporary reprieve, citing Mexico's progress in addressing money laundering by drug trafficking cartels.

Despite the reprieve, one of the banks originally sanctioned by the United States began liquidating its assets in October after Mexican authorities revoked its operating license.

Concretely, Mexico's Bank Savings Protection Institute (IPAB) announced that CIBanco's license was revoked due to suspected money laundering linked to drug trafficking, as alleged by U.S. authorities in June.

FinCEN said investigations by authorities found that CIBanco and Intercam facilitated transfers to two unnamed U.S. financial institutions, while Vector facilitated a transfer to another unidentified U.S. bank.

The Treasury said CIBanco helped launder money for several Mexican cartels, including the Jalisco New Generation Cartel (CJNG), the Beltrán Leyva Organization and the Gulf Cartel. Officials said the bank "facilitated procurement" of fentanyl precursor chemicals shipped from China by processing more than $2.1 million in payments.