The new Geographic Tracking Order (GTO) from the Trump administration will come into effect on April 14, 2025. So far, it has not been indicated whether it will extend to rules for international travelers and tourists. The aim of this measure is to combat money laundering and illicit activities of Mexican cartels and other criminal groups along the southern border of the United States.
Under the new order, all money service businesses (MSBs) located in certain counties and zip codes in California and Texas will be required to comply with this provision. These MSBs include currency exchange houses, issuers and sellers of money orders or traveler’s checks, and money transfer companies.
According to current rules, financial institutions must submit a Cash Transaction Report (CTR) when they receive $10,000 or more in cash in a single day. Each CTR must contain details about the transaction, including name, address, taxpayer identification number, date, amount, and nature of the operation.
Approximately 5.6 million households in the U.S. were unbanked in 2023. This predominantly affects low-income households, single-parent families, and minority communities. The new measure will also impose barriers for undocumented migrants sending remittances to their home countries through MSBs.
Civil rights organizations have expressed concern about a potential violation of financial privacy. Additionally, criticism arose when the Joe Biden administration attempted to lower reporting thresholds for payments made through digital platforms and payment apps.
The implementation of this measure on April 14, 2025, will have an impact on consumers, businesses, and communities within the designated areas. This could increase the workload and legal liability for companies, as well as raise the costs of products and services in those locations.
The new order will require MSBs located in 30 zip codes in California and Texas to report to FinCEN all cash transactions exceeding $200. The goal is to ensure that cash transactions are reported for tax enforcement and to combat illicit financing.
