FinCEN Requires Reporting of Small Dollar Transactions Near Mexico

FinCEN issued a Geographic Targeting Order ("GTO") "requiring [money] services businesses along the southwest border ... to report and retain records of currency transactions [exceeding] $200 but not [exceeding] $10,000, and to verify the identity of [individuals conducting] such transactions."

The GTO states that "the action is being taken in furtherance of Treasury's efforts to combat illicit finance by drug cartels and other illicit actors along the southwest border of United States." The Order covers 30 ZIP codes across seven counties in California and Texas.

In a FinCEN press release, Treasury Secretary Scott Bessent reaffirmed the department's commitment to tackling illicit financial threats, stating, "[a]s part of a whole-of-government approach to combatting the threat, Treasury remains focused on leveraging all our available tools and authorities to better identify and counter these criminal activities."

The Order remains in effect for 179 days, beginning 30 days after its publication in the Federal Register.