Banks Flag $1.4 Billion in Suspicious Activity Amid Fentanyl Crisis, FinCEN Reports

Banks and other financial institutions in the United States flagged a staggering $1.4 billion in suspicious transactions in 2024, playing a significant role in the national effort to combat crime and the deadly fentanyl epidemic, according to the Financial Crimes Enforcement Network (FinCEN). The agency’s latest Financial Trend Analysis, released Wednesday, outlines how financial institutions, operating under the obligations of the Bank Secrecy Act (BSA), provided critical data that helped uncover illicit financial activity linked to drug trafficking networks.

Between January 1 and December 31, 2024, financial institutions submitted 1,246 BSA reports, detailing transactions deemed suspicious due to their amounts, geographic routes, or the identities of the individuals involved. These reports, required by law, are essential to law enforcement investigations and are used annually by FinCEN to identify broader patterns and evolving threats.

According to the analysis, about 57 percent of the BSA reports came from banks and other depository institutions, while approximately 32 percent were filed by money services businesses (MSBs) — entities such as check cashers and money transfer services. The suspicious transactions included traditional bank wire transfers, online electronic payments, and exchanges involving convertible virtual currency, the report stated.

FinCEN found that roughly 51 percent of the reports referenced peer-to-peer money transfers related to fentanyl sales within the U.S., highlighting Arizona, California, Florida, and New York as the states most frequently mentioned. The vast majority of these reports pointed to trafficking in fentanyl, a powerful synthetic opioid that has devastated communities across the country.

“One gram of fentanyl—equal to a packet of sugar—has the potential to kill up to 500 people,” the U.S. Drug Enforcement Administration (DEA) warns. The agency recorded over 70,000 fentanyl-related overdose deaths in 2023 alone, underscoring the scale of the crisis.

In 2024, the DEA intensified its enforcement efforts, seizing more than 55 million fentanyl pills and nearly 8,000 pounds of fentanyl powder. The coordination between law enforcement and financial watchdogs like FinCEN has become a cornerstone of U.S. efforts to dismantle the drug’s supply chains.

Earlier this month, FinCEN issued a fresh alert urging financial institutions to quickly report any signs of bulk cash smuggling linked to drug trafficking. At the same time, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) imposed new sanctions targeting individuals and entities affiliated with the notorious Sinaloa Cartel.

The Sinaloa Cartel, along with the Cartel Jalisco Nueva Generacion, is behind the majority of fentanyl entering the United States. The two criminal organizations operate large-scale drug manufacturing operations in Mexico, using precursor chemicals primarily sourced from the People’s Republic of China, as well as from India, Canada, and the Dominican Republic.

The process, according to FinCEN, often involves front companies that obscure the true nature of the business. These companies appear legitimate but are deeply entrenched in the production and smuggling of fentanyl. Once the drug is trafficked into the United States—often by U.S. citizens hired by the cartels—the criminal networks must then find ways to move the proceeds back to Mexico.

Cartels frequently rely on MSB fund transfers to shift money, but increasingly, they are contracting with money-laundering operators, some based in China, to move vast sums of cash. The laundering schemes also involve trade in items like new cell phones and e-cigarette devices, adding a layer of complexity to financial investigations.

“As today’s analysis shows, the information we receive from financial institutions is a critical element in our ability to more effectively investigate and disrupt the malicious actors that profit off this unprecedented epidemic, and ultimately aids in the effort to save American lives,” said Secretary of the Treasury Scott Bessent in an April 9 press release.

FinCEN’s report emphasizes that the role of financial institutions in identifying suspicious financial activity remains vital to law enforcement’s ability to track and dismantle the operations of criminal organizations fueling the fentanyl crisis.

By fLEXI tEAM