WASHINGTON – In a move to crack down on illicit financial activities tied to Mexico-based drug cartels and criminal organizations, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a Geographic Targeting Order (GTO) targeting specific regions along the southwest border. The order, requires money services businesses (MSBs) in 30 ZIP codes across California and Texas to report cash transactions exceeding $200 to FinCEN.
The GTO is part of a broader effort to disrupt the financial operations of cartels and other criminal groups involved in drug trafficking and money laundering. Under the new rules, MSBs in the designated areas must file Currency Transaction Reports (CTRs) for cash transactions at the lowered threshold of $200, significantly below the standard $10,000 reporting requirement. The order will take effect 30 days after its publication in the Federal Register and remain in place for 179 days.
“Today’s issuance of this GTO underscores our deep concern with the significant risk to the U.S. financial system posed by cartels, drug traffickers, and other criminal actors along the Southwest border,” said Treasury Secretary Scott Bessent. “Treasury remains focused on leveraging all available tools and authorities to better identify and counter these criminal activities.”
The targeted ZIP codes span seven counties in California and Texas, including Imperial and San Diego Counties in California, and Cameron, El Paso, Hidalgo, Maverick, and Webb Counties in Texas. These regions have been identified as high-risk areas for cash-based money laundering activities tied to drug trafficking and other illegal operations.
The Biden administration has made combating drug cartels and stemming the flow of deadly drugs, such as fentanyl, into the United States a top priority. Earlier this year, President Trump signed an executive order enabling the designation of certain cartels as Foreign Terrorist Organizations (FTOs) or Specially Designated Global Terrorists (SDGTs). In February, the Treasury and State Departments designated eight organizations, including six major Mexico-based drug cartels, under these categories, allowing the U.S. to block their access to the financial system.
FinCEN emphasized the critical role of MSBs in helping to safeguard the U.S. financial system from criminal exploitation. “FinCEN appreciates the assistance of MSBs in defending the United States from Mexico-based cartels, especially those trafficking fentanyl, and in otherwise protecting the U.S. financial system,” the agency stated in its press release.
According to a press release, it is believed The GTO is the latest in a series of measures aimed at disrupting the financial networks of transnational criminal organizations. Further anticipating that by lowering the reporting threshold for cash transactions in high-risk areas, the Treasury hopes to gain greater visibility into the flow of illicit funds and strengthen its ability to combat money laundering and other financial crimes.
The order will remain in effect for six months, during which time FinCEN will monitor its impact and assess the need for further action. The targeted ZIP codes include:
- Imperial County, California: 92231, 92249, 92281, 92283
- San Diego County, California: 91910, 92101, 92113, 92117, 92126, 92154, 92173
- Cameron County, Texas: 78520, 78521
- El Paso County, Texas: 79901, 79902, 79903, 79905, 79907, 79935
- Hidalgo County, Texas: 78503, 78557, 78572, 78577, 78596
- Maverick County, Texas: 78852
- Webb County, Texas: 78040, 78041, 78043, 78045, 78046
