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The U.S. government is tightening its grip on cash transactions in 30 ZIP codes across California and Texas to target money linked to Mexican cartels.
This week, the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a temporary, geographically focused order.
It requires “money services businesses” to report any cash transactions of $200 or more.
Under the Bank Secrecy Act, financial institutions must usually report cash transactions over $10,000 or any suspicious activity to prevent money laundering, tax evasion, or other crimes.
However, this new FinCEN order lowers the reporting threshold to $200 but only applies to 30 ZIP codes in two border states. Notably, banks are not included — the rule focuses on check cashers and foreign currency exchange businesses.
Treasury Secretary Scott Bessent stated that the order highlights the serious threat cartels and drug traffickers pose to the U.S. financial system along the Southwest border.
FinCEN explained that this is part of a larger government strategy to combat cartels and curb drug smuggling into the U.S.
The move aligns with an order from former President Donald Trump to designate cartels as foreign terrorist organizations, helping block their access to the U.S. financial system.
The National Sheriffs’ Association (NSA) praised FinCEN’s action.
NSA President and Canyon County Sheriff Kieran Donahue said the effort was long overdue.
“This is critical because these guys operate freely when it comes to moving money — whether it’s laundering or transfers,” Donahue said.
However, not everyone supports the order. Nicholas Anthony, a policy analyst at the Cato Institute, criticized it as an expansion of “financial surveillance” that could affect innocent people.
Anthony acknowledged the difficulty of fighting organized crime but cautioned against sacrificing financial privacy.
The order takes effect in 30 days and will last for 179 days.
The ZIP codes affected by the FinCEN order cover seven counties in California and Texas:
Imperial County, California: 92231, 92249, 92281, 92283
San Diego County, California: 91910, 92101, 92113, 92117, 92126, 92154, 92173
Cameron County, Texas: 78520, 78521
El Paso County, Texas: 79901, 79902, 79903, 79905, 79907, 79935
Hidalgo County, Texas: 78503, 78557, 78572, 78577, 78596
Maverick County, Texas: 78852
Webb County, Texas: 78040, 78041, 78043, 78045, 78046
Sheriff Donahue expressed concern that the 30-day delay might give cartels time to find new ways to dodge detection.
Meanwhile, Anthony saw a positive side, noting the targeted and temporary nature of the order. He added that Cato’s research has shown limited success from Bank Secrecy Act reporting.
According to FinCEN’s most recent data shared with Cato, the IRS opened just 372 investigations from 27 million reports filed under the Bank Secrecy Act nationwide.
Anthony also stressed the impact on innocent people, pointing out that over a million residents live in the affected ZIP codes.
“Many use these services for legitimate reasons — sending money to family or friends — and this order risks invading their financial privacy,” he said.
