FinCEN issues new targeting order for money services near US-Mexico border

The US Treasury’s Financial Crimes Enforcement Network (‘FinCEN’) has issued a Geographic Targeting Order (‘GTO’) requiring money services businesses in 30 ZIP codes near the southwest border to report cash transactions as low as $200, according to an 11 March announcement.

‘Today’s issuance of this GTO underscores our deep concern with the significant risk to the U.S. financial system of the cartels, drug traffickers, and other criminal actors along the Southwest border,’ said Treasury Secretary Scott Bessent.

The order targets money services businesses (‘MSBs’) in seven counties across California and Texas, requiring them to file Currency Transaction Reports (‘CTRs’) for cash transactions at or above the $200 threshold, far below the standard $10,000 CTR reporting requirement.

‘Combatting drug cartels and stopping the flow of deadly drugs into the United States is one of the Administration’s highest priorities,’ FinCEN stated, noting the action follows President Trump’s January executive order establishing a process to designate certain cartels as Foreign Terrorist Organizations (‘FTOs’) and Specially Designated Global Terrorists (‘SDGTs’).

In February, the Departments of Treasury and State designated eight organisations, including six major Mexico-based drug cartels, as FTOs and SDGTs, allowing ‘further steps to deny individuals and entities associated with these groups access to the U.S. financial system,’ according to the announcement.

The order becomes effective 30 days after publication in the Federal Register and will remain in force for 179 days thereafter, covering ZIP codes in Imperial and San Diego counties in California, along with Cameron, El Paso, Hidalgo, Maverick, and Webb counties in Texas.

https://www.fincen.gov/news/news-releases/fincen-issues-southwest-border-geographic-targeting-order