Texas Border Business
Texas Border Business
March 20, 2025– Residents and businesses along the U.S.-Mexico border in Texas and California are about to experience heightened financial scrutiny as part of an intensified federal effort to crack down on cartel-related money laundering. Starting April 11, even routine cash transactions as small as $200 will trigger mandatory reporting by banks and money service businesses (MSBs), significantly tightening the rules previously set at a threshold of $10,000.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) recently issued a Geographic Targeting Order (GTO) explicitly combating illicit financial activities along the southwest border. The measure will apply to 30 ZIP codes across seven counties in California and Texas, regions historically vulnerable to criminal financial schemes orchestrated by drug cartels and transnational criminal organizations.
According to Treasury Secretary Scott Bessent, the move signifies the government’s determination to confront an escalating threat. “Today’s issuance of this GTO underscores our deep concern with the significant risk to the U.S. financial system posed by cartels, drug traffickers, and other criminal actors along the Southwest border,” Secretary Bessent stated. “As part of a whole-of-government approach to combating this threat, Treasury remains focused on leveraging all our available tools and authorities to identify better and counter these criminal activities.”
Under the new GTO, banks and money service businesses located within the designated border ZIP codes must file Currency Transaction Reports (CTRs) with FinCEN for all cash transactions equaling or exceeding $200. This drastic reduction—from the traditional threshold of $10,000—is unprecedented and reflects growing concerns about money laundering activities tied to Mexican drug cartels, especially those trafficking fentanyl into the United States.
The targeted areas include:
• California: Imperial and San Diego counties
• Texas: Cameron, El Paso, Hidalgo, Maverick, and Webb counties
FinCEN has identified these locations as particularly vulnerable gateways for cartel funds flowing into the U.S. financial system.
This aggressive move comes in alignment with President Donald J. Trump’s administration’s strategy to dismantle criminal organizations, including drug cartels, which have contributed significantly to the opioid crisis through trafficking synthetic opioids like fentanyl. In January 2025, President Trump issued an Executive Order to designate certain cartels as Foreign Terrorist Organizations (FTOs) and Specially Designated Global Terrorists (SDGTs).
Following this directive, in February, the Treasury and State Departments officially designated eight criminal entities—including six prominent Mexico-based drug cartels—as FTOs and SDGTs. These designations enable the U.S. to leverage greater financial and legal tools, significantly limiting these groups’ ability to conduct transactions through legitimate channels.
While federal authorities emphasize the necessity of this GTO as part of their strategy to prevent organized crime, local communities have expressed concerns over potential unintended consequences. Small businesses and residents conducting routine transactions near the border could be subject to increased scrutiny and potentially face unwarranted suspicion.
However, federal officials stress that the GTO’s intent is clearly to target illicit financial operations rather than ordinary economic activity. FinCEN specifically thanked local MSBs for their cooperation, recognizing the role these businesses play in safeguarding the financial system from cartel exploitation.
Duration and Next Steps
The GTO officially takes effect on April 11, 2025—30 days after its Federal Register publication on March 14, 2025—and will remain active for 179 days thereafter. During this period, federal authorities plan to monitor the effectiveness of this strategy in curtailing money laundering operations linked to organized crime and cartels. Depending on outcomes and intelligence gathered the Treasury Department may choose to extend, modify, or expand this approach.
Secretary Bessent accentuated the seriousness of the cartel threat and affirmed the government’s resolve, stating clearly that the financial sector is essential to combating organized crime:
“Treasury remains focused on leveraging all our available tools and authorities to identify better and counter these criminal activities.”
A copy of the GTO is available below:
