Legal Definitions - FINCEN

Definition: FINCEN is an abbreviation for Financial Crimes Enforcement Network. It is a bureau of the United States Department of the Treasury that collects and analyzes information about financial transactions in order to combat money laundering, terrorist financing, and other financial crimes.

Example: When a bank receives a large deposit of cash, they are required to report it to FINCEN. This is because large cash deposits can be a sign of illegal activity, such as drug trafficking or tax evasion. FINCEN will then analyze the information and investigate any suspicious activity.

Explanation: The example illustrates how FINCEN collects and analyzes information about financial transactions to identify potential financial crimes. By requiring banks to report large cash deposits, FINCEN can identify suspicious activity and investigate further. This helps to prevent money laundering and other financial crimes.