FinCEN expands Southwest border geographic targeting order

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has reissued a modified Geographic Targeting Order (GTO) to address illicit financial activity along the southwest border, including money laundering linked to drug cartels and other criminal networks according to FinCEN. The updated GTO mandates that money services businesses (MSBs) file Currency Transaction Reports (CTRs) with FinCEN for cash transactions between $1,000 and $10,000 in designated counties and ZIP codes in Arizona, California, and Texas. This revision aims to enhance law enforcement’s ability to track illicit networks while reducing compliance burdens on legitimate businesses.

The previous GTO, effective through September 9, 2025, required reporting for transactions above a $200 threshold in 30 ZIP codes in California and Texas. The new order, effective from September 10, 2025, to March 6, 2026, expands geographic coverage and adjusts reporting requirements. MSBs previously exempt from the March 2025 GTO have a 30-day compliance period, with reporting obligations beginning October 10, 2025. Additionally, the filing deadline for CTRs has been extended from 15 to 30 days for the duration of the GTO.

The targeted areas include Santa Cruz and Yuma counties in Arizona; Imperial and San Diego counties in California; and Cameron, El Paso, Hidalgo, Maverick, and Webb counties in Texas. FinCEN Director Andrea Gacki emphasized that the GTO supports efforts to disrupt cartels and protect the financial system from exploitation according to FinCEN. The order aligns with broader federal initiatives, including designations of Mexican drug cartels as Foreign Terrorist Organizations and Specially Designated Global Terrorists.

For details, FinCEN provides a compliance guide and frequently asked questions on its website according to FinCEN.