Overview

• The Financial Crimes Enforcement Network (FinCEN) has issued a Geographic Targeting Order (GTO) requiring money service businesses in 30 ZIP codes to report cash transactions of $200 or more, down from $10,000.
• The measure, effective April 14, 2025, for 179 days, aims to counter cartel money laundering and fentanyl trafficking along the U.S.-Mexico border.
• Critics, including the Cato Institute, argue the policy imposes excessive financial surveillance on law-abiding citizens and could burden small businesses.
• The affected areas span counties in Texas and California, including Webb, Hidalgo, San Diego, and Imperial, impacting approximately one million residents.
• The Trump administration’s recent designation of Mexican cartels as Foreign Terrorist Organizations underscores the heightened focus on combating cartel-related activities.