FinCEN Orders Crackdown on Cash Transactions Over $200 in Border Areas to Combat Cartel Activity

The Financial Crimes Enforcement Network (FinCEN), the U.S. Treasury’s anti-money laundering unit, has issued a new Geographic Targeting Order (GTO) requiring financial firms in specific areas near the U.S.-Mexico border to report all cash transactions exceeding $200. The measure is part of a broader effort to disrupt cartel operations and combat illicit financial activities.

“The GTO requires all money services businesses in 30 ZIP codes across California and Texas to file Currency Transaction Reports with FinCEN for cash transactions above $200,” the agency stated. The order is aimed at curbing money laundering and other criminal enterprises tied to Mexico-based cartels.

Treasury Secretary Scott Bessent underscored the serious risks posed by these criminal organizations. “Today’s GTO highlights our deep concern over the threat cartels, drug traffickers, and other criminals pose to the U.S. financial system,” he said. “As part of a whole-of-government approach, Treasury is committed to using all available tools to identify and combat these activities.”

The order applies to all money services businesses (MSBs) operating in the designated areas, taking effect 30 days after its publication in the Federal Register and remaining in force for 179 days. This GTO impacts businesses engaged in various financial services, including money remittances, currency exchanges, check cashing, money order sales, and prepaid access transactions.

The geographic scope of the GTO covers ZIP codes in seven counties across California and Texas:

California:

• Imperial County: 92231, 92249, 92281, 92283

• San Diego County: 91910, 92101, 92113, 92117, 92126, 92154, 92173

Texas:

• Cameron County: 78520, 78521

• El Paso County: 79901, 79902, 79903, 79905, 79907, 79935

• Hidalgo County: 78503, 78557, 78572, 78577, 78596

• Maverick County: 78852

• Webb County: 78040, 78041, 78043, 78045, 78046

FinCEN expressed its appreciation to financial firms for their ongoing efforts in the fight against financial crime. The agency encouraged institutions to review the full details of the order and ensure compliance with the new reporting requirements.

For additional information, financial firms can visit www.fincen.gov/contact, where a copy of the GTO is also available.

This latest directive aligns with the Trump administration’s broader strategy against Mexican cartels. Earlier in February, multiple Mexican cartels were officially designated as terrorist organizations as part of an intensified crackdown on cross-border criminal enterprises.

By fLEXI tEAM