What Is the Financial Crimes Enforcement Network (FinCEN)?
The Financial Crimes Enforcement Network (FinCEN) is a bureau of the U.S. Department of Treasury that was established in 1990 to combat money laundering and other financial crimes. FinCEN works with law enforcement, regulatory agencies, and intelligence organizations to detect, prevent, and prosecute financial crime activities such as terrorist financing, fraud schemes, tax evasion, cybercrime activity, and more. The agency collects data from banks on suspicious transactions or activities that could be related to criminal activity; this information is then used by federal investigators for further investigation into potential criminal activity.
In addition to collecting data from banks about suspicious transactions or activities related to criminal activity, FinCEN also provides guidance on anti-money laundering compliance requirements for financial institutions through its Bank Secrecy Act regulations. These regulations require certain types of businesses—such as casinos—to report large cash transactions over $10k USD or any transaction involving foreign currency exchange over $3k USD; they also require all US citizens who hold accounts outside the country worth more than $10k USD at any given time must file an FBAR form with FinCen annually. By providing these guidelines and enforcing them when necessary through civil penalties or even criminal prosecution if warranted by the situation , FinCEN helps protect our economy from illegal use of funds while ensuring legitimate business operations are conducted properly within legal parameters .