The Financial Crimes Enforcement Network (FinCEN) has issued Advisory FIN-2025-A003 to alert financial institutions about the increasing use of Chinese money laundering networks by Mexico-based transnational criminal organizations (TCOs). The advisory details the methods and typologies employed by these networks to launder proceeds from illicit activities, including drug trafficking and fraud, and emphasizes the importance of identifying and reporting suspicious transactions.

Financial institutions should review the advisory to understand the red flags associated with these networks and enhance their Bank Secrecy Act (BSA) compliance programs. This includes updating risk assessments, training personnel, and filing Suspicious Activity Reports (SARs) with detailed information when transactions involving these networks are identified. While the advisory itself is non-binding, failure to enhance due diligence and reporting in line with identified risks could lead to regulatory scrutiny and potential penalties for BSA violations.