Financial Crimes Enforcement Network

The Financial Crimes Enforcement Network (FinCEN) is a bureau of the United States Department of the Treasury responsible for collecting, analysing, and disseminating financial intelligence to combat money laundering, terrorist financing, and other financial crimes. Acting as the United States’ Financial Intelligence Unit (FIU), FinCEN plays a central role in safeguarding the integrity of the national and international financial system by supporting law enforcement, regulatory agencies, and policymakers through data-driven oversight and enforcement.

Mission and Mandate

FinCEN’s stated mission is to protect the financial system from illicit use, counter money laundering and the financing of terrorism, and promote national security through the strategic use of financial authorities and the effective collection, analysis, and sharing of financial intelligence. Its self-described motto, “follow the money”, reflects its core investigative philosophy. FinCEN operates as a coordination hub, linking financial institutions, regulators, and law enforcement agencies to identify suspicious financial activity and disrupt criminal networks.
As the US FIU, FinCEN is a member of the Egmont Group of Financial Intelligence Units, an international network comprising more than 140 FIUs that facilitates cross-border cooperation and information sharing to combat global financial crime.

Historical Development

FinCEN was established on 25 April 1990 through Treasury Order 105-08, initially focusing on analysis and intelligence related to financial crimes. In May 1994, its mission expanded to include regulatory responsibilities, and later that year the Treasury’s Office of Financial Enforcement was merged into FinCEN, strengthening its enforcement and compliance role.
Following the terrorist attacks of 11 September 2001, FinCEN’s authority was significantly expanded. On 26 September 2002, after the passage of Title III of the USA PATRIOT Act, Treasury Order 180-01 formally designated FinCEN as a bureau within the Department of the Treasury. This marked a shift towards a more prominent role in counter-terrorist financing and national security.
Technological capabilities have been central to FinCEN’s evolution. Since 1995, the bureau has employed advanced analytical systems, including the FinCEN Artificial Intelligence System. In 2012, its information technology infrastructure was modernised with the introduction of FinCEN Query, a search platform accessible via the FinCEN Portal, enabling comprehensive searches across more than a decade of financial data.

Organisational Structure and Staffing

FinCEN is staffed primarily by intelligence professionals with expertise in illicit finance, financial regulation, anti-money laundering and countering the financing of terrorism (AML/CFT), data analysis, and enforcement. As of the early 2010s, the bureau employed several hundred personnel, the majority of whom were permanent staff, supported by long-term detailees from other regulatory and law enforcement agencies.
The organisation collaborates closely with a wide range of domestic partners, including the Federal Bureau of Investigation, Drug Enforcement Administration, Internal Revenue Service, United States Secret Service, and other federal and state agencies. This inter-agency cooperation allows FinCEN to function as a central intelligence clearinghouse within the US financial crime enforcement framework.

Regulatory and Reporting Functions

A core responsibility of FinCEN is the administration and enforcement of the Bank Secrecy Act (BSA). Under this framework, financial institutions are required to maintain records and submit reports that are essential for detecting and preventing financial crime. Key reports generated and managed by FinCEN include:

• Suspicious Activity Reports (SARs), filed when transactions appear to involve illicit activity
• Currency Transaction Reports (CTRs), documenting large cash transactions above statutory thresholds
• Designation of Exempt Person (DOEP) filings
• Registered Money Services Business (RMSB) records

These reports form the backbone of FinCEN’s analytical work and are widely used by law enforcement agencies in criminal investigations.

Section 314 Information Sharing Programme

Section 314 of the USA PATRIOT Act requires the creation of secure mechanisms for information sharing between law enforcement and financial institutions. Under Section 314(a), FinCEN enables authorised federal agencies to query tens of thousands of financial institutions to locate accounts and transactions linked to individuals or entities suspected of terrorism or money laundering.
This programme facilitates rapid identification and centralisation of fragmented financial data, allowing suspicious patterns to be analysed efficiently. The partnership established through Section 314 has become a cornerstone of public–private collaboration in financial crime prevention.

Informal Value Transfer Systems

FinCEN has also focused on non-traditional financial channels, including informal value transfer systems such as hawala. These systems operate outside conventional banking structures and are often used in cross-border remittances. In the early 2000s, FinCEN issued guidance and intelligence products addressing the risks posed by such systems, particularly their potential misuse for money laundering and terrorist financing.
The bureau’s Enforcement Division includes specialised units responsible for investigating unauthorised disclosures, enforcing compliance with financial regulations, and conducting complex financial investigations with criminal implications.

Virtual Currencies and Digital Assets

FinCEN has been at the forefront of regulating virtual currencies and digital assets within the US AML/CFT framework. In 2011, it expanded the definition of money services businesses to include entities dealing in value that substitutes for currency. In 2013, FinCEN issued landmark guidance clarifying that administrators and exchangers of convertible virtual currencies are considered money transmitters and must comply with AML/CFT obligations, including registration, recordkeeping, and reporting.
Subsequent collaboration with inter-agency working groups and financial regulators reinforced FinCEN’s oversight of the digital asset sector. Legislative amendments in 2021 formally incorporated digital assets into the Bank Secrecy Act framework, affirming FinCEN’s authority over cryptocurrency exchanges and related service providers.
The volume of reports related to digital assets has grown significantly, reflecting the increasing use of cryptocurrencies and associated financial crime risks. These reports include suspected cybercrime, fraud, and laundering activities involving both traditional and virtual financial institutions.

Beneficial Ownership Information Reporting

FinCEN is the designated authority for administering the Beneficial Ownership Information Reporting system in the United States. This responsibility was established under the Corporate Transparency Act, which requires certain legal entities to disclose information about individuals who ultimately own or control them. The objective is to prevent the misuse of anonymous shell companies for illicit purposes.
The system centralises sensitive ownership data, including names, addresses, dates of birth, and identification numbers, making it accessible to authorised law enforcement agencies. While the framework aims to enhance transparency and accountability, its implementation has been subject to legal challenges concerning constitutional and regulatory impacts.

Leadership and Governance

FinCEN has been led by a series of directors and acting directors since its establishment, drawn from backgrounds in law enforcement, finance, and regulatory policy. Leadership continuity has been supported by experienced career staff and close integration with the broader Treasury Department and federal enforcement community.