The Financial Crimes Enforcement Network (FinCEN) has renewed a Geographic Targeting Order (GTO) requiring certain money services businesses (MSBs) along the U.S. southwest border to report cash transactions of $1,000 or more. This measure, effective from September 3, 2026, to March 1, 2027, aims to enhance efforts against drug cartels and transnational criminal organizations.
The renewed GTO mandates MSBs in specific ZIP Codes across New Mexico and Texas to file Currency Transaction Reports (CTRs) for cash transactions between $1,000 and $10,000. Businesses not previously covered by the GTO issued on March 10, 2026, have until October 3, 2026, to comply. Additionally, the filing deadline for these specific CTRs has been extended to 30 days from the transaction date, compared to the standard 15 days.
FinCEN said the GTO is a critical tool in combating drug cartels and stopping the flow of deadly drugs, such as fentanyl, into the United States. This initiative supports the Administration's priorities, following President Donald J. Trump's Executive Order 14157, which designated certain cartels as Foreign Terrorist Organizations or Specially Designated Global Terrorists. The agency noted that MSBs in the southwest border region face unique money laundering vulnerabilities due to intensive operations by drug, human, and weapons trafficking cartels.
Covered Businesses must use the BSA E-Filing System to submit reports, including the term "MSB0926GTO" in Field 45 of Part IV of the CTR form. The GTO applies only to services offered in an MSB capacity, such as foreign currency exchange, check cashing, and money transmission, not to the sale of goods. Willful violations can incur significant civil penalties, starting at $71,545, and criminal penalties, including fines up to $250,000 and up to five years imprisonment. The information gathered will help Treasury and law enforcement identify cartel-related money laundering and conduct targeted investigations.