Criminal networks don’t always operate in the shadows, they often cluster in well-known financial hubs. That’s why the U.S. government has designated specific regions as High-Intensity Financial Crime Areas (HIFCAs), where money laundering and other financial crimes are more prevalent. For enterprises operating in or near these zones, compliance isn’t optional – it’s essential.
Trustpair helps organizations strengthen their fraud defenses by continuously monitoring third-party risks and validating payment data. With rising pressure on companies in high-risk areas, automated controls and real-time insights are critical for staying compliant and protected. Contact an expert to learn more!
What are High-Intensity Financial Crime Areas (HIFCAs)?
High-Intensity Financial Crime Areas, or HIFCAs, are geographic regions in the U.S. identified as having a high concentration of financial crime, particularly money laundering. These areas are designated by the Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN) as part of a broader strategy to target and disrupt criminal activity.
The goal of a HIFCA designation is to concentrate law enforcement efforts, compliance resources, and regulatory scrutiny on areas with elevated financial crime risks. These often include major urban hubs or regions with a high volume of cash-based businesses, cross-border transactions, or vulnerable monetary systems.
Why do HIFCAs matter?
- Enhanced regulatory attention: Banking institutions operating in HIFCAs face stricter compliance expectations and reporting requirements.
- Increased risk exposure: Businesses in these zones may be more vulnerable to criminal exploitation, especially in industries like real estate, trade, or banking.
- AML program impact: Being in or transacting with a HIFCA region may require companies to implement stronger anti-money laundering (AML) controls.
Where are the current HIFCA-designated regions in the U.S?
The current regions are designated by the U.S. Treasury to spotlight geographic areas where financial crimes are more prevalent. These zones receive heightened regulatory scrutiny and law enforcement attention, helping to disrupt money laundering networks and protect the monetary system at large.
As of now, the designated HIFCAs include:
- New York/New Jersey: Encompasses all counties in both states.
- Chicago: Includes Cook, DuPage, Kane, Lake, McHenry, and Will counties in Illinois.
- California Northern District: Covers counties such as Alameda, Contra Costa, Del Norte, Humboldt, Lake, Marin, Mendocino, Monterey, Napa, San Benito, San Francisco, San Mateo, Santa Cruz, and Sonoma.
- California Southern District: Comprises Los Angeles, Orange, Riverside, San Bernardino, San Luis Obispo, Santa Barbara, and Ventura counties.
- South Florida: Includes Broward, Indian River, Martin, Miami-Dade, Monroe, Okeechobee, Palm Beach, and St. Lucie counties.
- Southwest Border: Encompasses all counties in Arizona and specific counties in Texas that border or are adjacent to the U.S.-Mexico boundary.
- Puerto Rico and the U.S. Virgin Islands: Covers all areas within these territories.
These designations are subject to change based on evolving financial crime patterns. Businesses operating within or in proximity to HIFCAs should remain vigilant and ensure robust compliance measures to mitigate associated risks.
What are the current implications of a business operating in HIFCAs?
Operating within a HIFCA-designated region means increased compliance expectations and oversight.
Companies may be subject to:
- Stricter AML (Anti-Money Laundering) requirements
- More frequent audits and reporting obligations
- Enhanced due diligence on customer and vendor relationships
- Enhanced scrutiny of transactions and monetary behaviors
For banking institutions and corporates alike, this creates pressure to maintain airtight compliance processes, especially around third-party risk and payment flows.
Trustpair helps organizations mitigate these challenges by verifying banking credentials in real-time and securing payment processes, ensuring fraud risks are minimized even in high-risk zones.
Strategies for mitigating financial risk in high-risk areas
Operating in a High-Intensity Financial Crime Area (HIFCA) means dealing with heightened scrutiny and an increased risk of monetary crimes, especially money laundering. To reduce exposure and remain compliant, companies must take a proactive, layered approach to risk management.
Enhanced due diligence (EDD) is a critical first step, going beyond basic KYC to thoroughly assess the fiscal behavior, identity, and risk profile of vendors, partners, and clients. This becomes especially important when onboarding new third parties or expanding operations in high-risk zones.
Real-time monitoring tools can also play a vital role. Tracking economic activity continuously allows teams to detect anomalies early, flagging unusual transactions before they escalate into bigger threats. Automated solutions like bank account ownership verification help ensure that payments only go to validated recipients, which significantly reduces the risk of fraud.
Finally, internal awareness is essential. By training staff to recognize red flags and understand regional compliance requirements, businesses can strengthen their first line of defense and build a culture of vigilance.
In high-risk areas, it’s not just about meeting regulatory standards—it’s about staying ahead of evolving threats with a robust, proactive fraud prevention strategy.
Future outlook on evolving regulations and HIFCA regions
The landscape of financial crime is constantly shifting—and so are the regulatory responses to it. As criminal tactics become more advanced, we can expect increased attention on HIFCA regions and more stringent financial compliance requirements across the board.
Expanding HIFCA designations
Given the rise in complex financial crimes—including cryptocurrency laundering, shell company abuse, and AI-enabled fraud—the list of HIFCA-designated regions is likely to evolve. New urban centers and banking hubs could be added to the list based on emerging data trends and suspicious activity reports (SARs) filed with FinCEN.
Tougher compliance expectations
Businesses operating in or near HIFCA zones should anticipate increased pressure to meet evolving Anti-Money Laundering (AML) standards. Regulatory bodies like FinCEN and the Financial Action Task Force (FATF) continue to push for tighter due diligence, more frequent reporting, and the use of advanced fraud detection technologies.
Future regulations may mandate:
- Stronger beneficial ownership verification
- Cross-border transaction transparency
- Real-time fraud monitoring and suspicious activity flagging
- Greater collaboration with law enforcement and regulators
Preparing for what’s ahead
For businesses, staying ahead of regulatory shifts means investing in scalable compliance frameworks and digital tools. This includes flexible fraud prevention platforms, continuous vendor screening, and systems that can adapt to new reporting requirements as they emerge.
While HIFCA designations may seem like red flags, they also offer an opportunity to lead in compliance, build stronger fraud defenses, and enhance reputation in the eyes of both regulators and partners.
Trustpair supports companies with real-time third-party risk management, helping them detect suspicious activity and verify vendor data before making payments. By automating controls and providing audit-ready insights, Trustpair gives organizations operating in high-risk areas a critical line of defense. Contact an expert to learn more!
