Geographic Targeting Order Imposing Recordkeeping and Reporting Requirements on Certain Money Services Businesses Along the Southwest Border
Key claim: Money services businesses along the U.S. southwest border must verify customer identity and keep and file reports on cash transactions of $1,000 to $10,000, below the usual $10,000 currency-reporting threshold.
Abstract
(Rule · Treasury Department, Financial Crimes Enforcement Network) FinCEN is issuing this Geographic Targeting Order, requiring certain money services businesses along the southwest border of the United States to report and retain records of transactions in currency of $1,000 or more, but not more than $10,000, and to verify the identity of persons presenting such transactions.
Why this matters
Geographic Targeting Orders are a recurring FinCEN tool that impose enhanced BSA recordkeeping and reporting on a defined set of financial actors without going through notice-and-comment rulemaking. The southwest border MSB order lowers the cash-reporting threshold tenfold in targeted ZIP codes, meaningfully increasing compliance burden for affected money transmitters and check cashers while giving Treasury more granular visibility into cross-border cash flows tied to narcotics and human smuggling.