Snapshot:
On June 5, 2026, FinCEN issued a new advisory urging financial institutions to identify and report suspicious activity tied to payroll fraud, identity theft, and money laundering linked to the employment of unauthorized workers. The advisory follows a May 2026 executive order and outlines specific “red flags” institutions should monitor.
Why it Matters:
This guidance reinforces expectations for enhanced monitoring tied to employment-related financial activity, particularly where identity misuse or structured payroll schemes may be present. BSA/AML teams should review transaction monitoring scenarios and SAR narratives to ensure alignment with newly identified typologies. The advisory also signals continued regulatory focus on how illicit labor-related schemes intersect with broader financial crime risks.
Official Source:
Press Release: FinCEN Asks Financial Institutions to Detect and Report Illicit Activity Related to Illegal Aliens | treasury.gov