Background on FinCEN and its Relevance
The Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury, plays a crucial role in combating financial crimes. Under the leadership of Director Andrea Gacki, FinCEN has been actively working to dismantle criminal networks associated with drug trafficking and other illicit activities, especially along the U.S. southwestern border.
New Geographic Targeting Order (GTO)
On September 10, 2025, FinCEN issued a new Geographic Targeting Order (GTO) targeting currency transactions linked to drug trafficking and other illegal activities in the southwestern border region. This order will run until March 2026.
Affected Areas
The GTO applies to financial service businesses in strategically important counties and zip codes, identified by law enforcement agencies due to their association with drug cartels. These locations include:
- Santa Cruz and Yuma Counties in Arizona
- Imperial and San Diego Counties in California
- Cameron, El Paso, Hidalgo, Maverick, and Webb Counties in Texas
Purpose and Impact
The primary goal of this GTO is to gather intelligence on powerful criminal networks that pose significant risks to the U.S. financial system and public health. By requiring financial institutions in these areas to report cash transactions between $1,000 and $10,000, authorities aim to strengthen investigations against illicit organizations involved in drug trafficking.
Contextualizing the GTO within the Trump Administration’s Actions
This GTO aligns with the Trump administration’s efforts since January to designate six Mexican cartels as Foreign Terrorist Organizations and Global Terrorist Designated Entities. The administration prioritizes combating drug cartels and curbing the flow of deadly drugs into the U.S.
Key Questions and Answers
- What is FinCEN? FinCEN is a bureau of the U.S. Department of the Treasury responsible for safeguarding the financial system from illicit use and combating domestic and international money laundering, terrorist financing, and other financial crimes.
- What is a Geographic Targeting Order (GTO)? A GTO is an enforcement tool used by FinCEN to collect specific financial information from businesses in designated geographic areas for a limited period.
- Which states and counties are affected by this GTO? The GTO applies to financial service businesses in Santa Cruz and Yuma Counties, Arizona; Imperial and San Diego Counties, California; and Cameron, El Paso, Hidalgo, Maverick, and Webb Counties in Texas.
- What types of transactions are subject to reporting? Financial institutions must report cash transactions ranging from $1,000 to $10,000 in these specified areas.
- Why is this GTO being implemented? The GTO aims to gather intelligence on criminal networks involved in drug trafficking and other illicit activities along the U.S. southwestern border, enhancing investigations and safeguarding the financial system.
