The Trump administration is seeking more information about your financial transactions—but only if you live in one of 30 ZIP codes.
(Important to take this seriously even if you're not currently in an affected zip code -- they could always expand the affected areas)
"Beginning in April, the Department of the Treasury's Financial Crimes Enforcement Network (FinCEN) will require persons in those ZIP codes—estimated to be more than one million Americans—to be reported if they try to spend more than $200 in cash or cash equivalent on items like money orders and traveler's checks. That’s a dramatic expansion of the standard $10,000 cash reporting requirement.
The new Geographic Targeting Order (GTO), which has, as its stated purpose, "to further combat the illicit activities and money laundering of Mexico-based cartels and other criminal actors along the southwest border of the United States," was quietly introduced this week. The GTO requires all money services businesses (MSBs) located in 30 ZIP codes across California and Texas to file Currency Transaction Reports (CTRs) with FinCEN at a $200 threshold for cash transactions. The threshold for all other areas remains $10,000.
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While the goal of the GTO is allegedly to target cartels (who knew that drug cartels relied on Western Union?), the new rule has the potential to ensnare those who rely on MSBs more heavily than traditional financial institutions, including the unbanked. According to the Federal Deposit Insurance Corporation (FDIC), a household is considered unbanked if no one in the household has a checking or savings account at a bank or credit union. In 2023, 4.2 percent of U.S. households—about 5.6 million households— were unbanked.
Unbanked rates are higher for certain populations, including lower-income and single-parent households. Rates are also higher for minority populations, including Black, Hispanic, and American Indian or Alaska Native households, and working-age households with a disability. For working-age households with a disability, the unbanked rate in 2023 was 11.2%—that's three times higher than the unbanked rate among working-age households without a disability. For single-parent households, the unbanked rate was 12.3%—more than five times higher than the unbanked rate among married-couple households with one or more children."
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So far, no one has sounded the alarm on the GTO. That may be because not many people are talking about it. Those that are, including the Cato Institute, worry about the erosion of privacy guardrails. There is also a concern that this is just a first step—and expanded reporting requirements could be in the cards for any organization, ZIP code, or geographic area.
When asked specific questions about the Order, including how the ZIP codes and limit were selected and whether the reporting requirements might simply drive more financial transactions underground, FinCEN declined further comment beyond pointing to the press release and Order."
