The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has announced a new Geographic Targeting Order (GTO) aimed at combating illicit activities and money laundering by Mexico-based cartels along the southwest border of the United States. This measure requires money services businesses in 30 ZIP codes across California and Texas to file Currency Transaction Reports for cash transactions meeting a $200 threshold.
"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," stated Secretary of the Treasury Scott Bessent. He emphasized that the Treasury is committed to using all available tools to counter these criminal activities.
The administration prioritizes stopping drug cartels and preventing drugs from entering the United States. In January, President Donald J. Trump issued an Executive Order to designate certain cartels as Foreign Terrorist Organizations (FTOs) or Specially Designated Global Terrorists (SDGTs). Following this order, in February, eight organizations, including six major Mexico-based drug cartels, were designated as FTOs and SDGTs by the Departments of Treasury and State. These designations aim to restrict these groups' access to the U.S. financial system.
The GTO's terms will become effective 30 days after publication in the Federal Register and will remain effective for 179 days thereafter. The targeted ZIP codes are located in seven counties: Imperial County and San Diego County in California; Cameron County, El Paso County, Hidalgo County, Maverick County, and Webb County in Texas.
FinCEN expressed gratitude towards MSBs for their role in protecting the U.S. from cartel activities, particularly those involving fentanyl trafficking.
Questions regarding the GTO can be directed to FinCEN's contact page online.
A copy of the GTO is available for review.
