The Financial Crimes Enforcement Network (FinCEN) issued a Notice to financial institutions on the methodologies, financial typologies, and red flag indicators associated with timeshare fraud orchestrated by Mexico-based transnational criminal organizations (TCOs).
Source: U.S. Department of Justice
Mexico-based TCOs such as the Jalisco New Generation Cartel (CJNG) are increasingly targeting U.S. owners of timeshares in Mexico through complex and often yearslong telemarketing, impersonation, and advance fee schemes. They use the illicit proceeds to diversify their revenue streams and finance other criminal activities, including the manufacturing and trafficking of illicit fentanyl and other synthetic drugs into the United States.
The Notice was issued jointly with Treasury’s Office of Foreign Assets Control (OFAC) and the Federal Bureau of Investigation, and published concurrently with an OFAC sanctions action against Mexican accountants and companies for their role in facilitating timeshare fraud on behalf of CJNG.
Financial institutions with questions about the content of today’s joint Notice should contact FinCEN’s Regulatory Support Section at frc@fincen.gov.
FinCEN Notice (FIN-2024-NTC2): https://www.fincen.gov/sites/default/files/shared/FinCEN-Joint-Notice-Timeshare-Mexico-508C-FINAL.pdf
Treasury Press Release: https://home.treasury.gov/news/press-releases/jy2465
