The Financial Crimes Enforcement Network (FinCEN) has issued a Geographic Targeting Order (GTO) aimed at disrupting illicit activities and money laundering by Mexico-based cartels along the U.S. southwest border. The GTO mandates that money services businesses (MSBs) in 30 ZIP codes across California and Texas file Currency Transaction Reports (CTRs) for cash transactions exceeding $200.
Secretary of the Treasury Scott Bessent stated, "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". Bessent added that the Treasury is focused on leveraging all available tools to counter these criminal activities.
This action is part of a broader effort to combat drug cartels, with President Donald J. Trump having issued an Executive Order in January to designate certain cartels as Foreign Terrorist Organizations (FTOs) and/or Specially Designated Global Terrorists (SDGTs). In February, the U.S. Departments of the Treasury and State designated eight organizations, including six major Mexico-based drug cartels, as FTOs and SDGTs. These designations will deny individuals and entities associated with these groups access to the U.S. financial system.
The GTO, effective 30 days after its publication in the Federal Register, will remain in effect for 179 days. FinCEN has requested the assistance of MSBs in defending the United States from Mexico-based cartels and protecting the U.S. financial system.