CALIFORNIA – The U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN) announced March 11, that it has issued a Geographic Targeting Order (GTO) to crack down on money laundering and illegal activities by Mexico-based cartels near the U.S. southwest border.
The GTO requires all money services businesses (MSBs), like Western Union, located in 30 ZIP codes across Southern California and Texas to file a report with FinCEN at a $200 threshold, in connection with cash transactions.
The Treasury said combating drug cartels and stopping the flow of deadly drugs into the United States is one of the administration’s highest priorities.
Money launderers break up transactions into smaller amounts
Normally, MSBs must report to FinCEN when a person makes cash transactions totaling more than $10,000 in a single business day.
However, cartels and money launderers often try to break up large transactions into smaller amounts to avoid triggering the $10,000 reporting threshold.
The order covers the following ZIP codes across seven counties in California and Texas:
- 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
The GTO starts 30 days after it is published in the Federal Register and lasts for 179 days.
Businesses may worry about U.S prosecution for unintentional transactions linked to cartels
In January, President Trump signed an executive order to label certain cartels and groups as Foreign Terrorist Organizations (FTOs) and Specially Designated Global Terrorists (SDGTs).
The administration said it added eight groups, including six major Mexican drug cartels, to these lists.
While these actions aim to disrupt criminal networks, they also raise concerns about overreach and the impact on legitimate businesses.
Critics say the executive order is too broad and harsh, and it could hurt relations and trade with Latin America.
In addition, businesses, banks, and buyers might worry about facing U.S. prosecution if they have any transactions linked to cartels, even unintentionally.
 announced March 11, that it has issued a Geographic Targeting Order (GTO) to crack down on money laundering and illegal activities by Mexico-based cartels near the U.S. southwest border.){kind=link}