Source of Funds Should Be Primary Concern in Dealing with Customers Who May be Illegal Aliens

By Colby Adams

Financial institutions don't risk a potential enforcement action by remitting cash for illegal aliens, as long as the funds are legally obtained, say analysts. As more immigrants from Latin America send money back to their families, compliance officers find themselves weighing the risks of unwittingly remitting for illegal aliens and if the relationship is worth the potential heightened scrutiny from examiners. Remittances from the United States to Latin America alone topped $45 billion in 2008, according to the Inter-American Development Bank. Additionally, some compliance officers point out that payments associated with individuals employing illegal aliens could technically be linked with tax...