Money Flow Linked to Human Smuggling Plunges in Trump Crackdown

In 2025, a sharp decline of over 60% in money flow related to human smuggling was reported by the US Treasury, following the implementation of a series of crackdowns during President Trump's second term. Suspicious transfers, primarily originating from the US and Latin America, plummeted to 11,018 in the first year of the new administration. This significant decrease was attributed to the introduction of new restrictions that deterred migration and led to a 90% drop in official migrant encounters at the US southern border.

The Financial Crimes Enforcement Network (FinCEN) reported that despite these efforts, attempted or completed transfers of suspected smuggling-related funds reached a staggering $4.9 billion between 2023 and 2025. Notably, a significant proportion of these transactions, around 97%, were traced back to money-transfer firms, with an average filing size of $7,961.

The crackdown on money flow linked to human smuggling was primarily driven by the government's efforts to limit access to the asylum system, roll back protections for immigrants in court proceedings, and expedite deportations. However, even with these stringent measures, the smugglers and migrants are resorting to higher-risk strategies to avoid detection. A grim example of this trend came in May when six migrants were found dead inside a sweltering train car near Laredo, Texas.

The highest concentration of suspicious funds was reported by banks, particularly for ATM withdrawals near the US southern border. In one notable incident, a bank flagged a transaction involving a company that sells thermal binoculars, which are commonly used in smuggling operations. The bulk of the suspicious funds were traced to banks, highlighting their critical role in the tracking and disruption of such illicit activities.