FinCEN Imposes Geographic Targeting Order to Combat Money Laundering Along Southwest Border

The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a Geographic Targeting Order (GTO) aimed at intensifying efforts to curb money laundering by Mexico-based cartels and other criminal organisations operating along the southwest border.

This newly announced GTO mandates that money services businesses (MSBs) in 30 ZIP codes across California and Texas file Currency Transaction Reports (CTRs) for cash transactions of $200 or more. By significantly lowering the reporting threshold, FinCEN aims to enhance financial transparency and track illicit cash movements linked to organised crime and drug trafficking.

Strengthening Financial Oversight to Combat Cartels

Treasury Secretary Scott Bessent underscored the move as a crucial step in safeguarding the US financial system from drug cartels, traffickers, and other criminal entities. He reaffirmed that the Treasury remains committed to a whole-of-government approach in countering illicit financial activities and preventing deadly drugs from entering the US.

This action follows a January Executive Order from President Donald Trump, which facilitated the designation of certain cartels as Foreign Terrorist Organizations (FTOs) and Specially Designated Global Terrorists (SDGTs). Consequently, in February, the Treasury and State Departments classified six major Mexico-based cartels as FTOs and SDGTs, empowering authorities to block their access to the US financial system.

Targeted ZIP Codes & Implementation Timeline

The GTO applies to ZIP codes in seven counties across California and Texas, covering key areas vulnerable to cross-border financial crimes.

• California

  • Imperial County: 92231, 92249, 92281, 92283

  • San Diego County: 91910, 92101, 92113, 92117, 92126, 92154, 92173

    
    

• Texas

  • Cameron County: 78520, 78521

  • El Paso County: 79901, 79902, 79903, 79905, 79907, 79935

  • Hidalgo County: 78503, 78557, 78572, 78577, 78596

  • Maverick County: 78852

  • Webb County: 78040, 78041, 78043, 78045, 78046

The order takes effect 30 days after publication in the Federal Register and will remain in force for 179 days.

Enhancing Defences Against Money Laundering

FinCEN recognises the critical role of MSBs in preventing illicit funds from circulating through the US financial system. By disrupting cartel financing networks, this GTO strengthens national efforts to combat fentanyl trafficking and other organised crime activities along the southwest border.

The US government continues to deploy all available financial tools to detect and dismantle criminal operations that pose a significant threat to national security.

A copy of the GTO is available here.

Read press release here.