FinCEN Reissues Geographic Targeting Order for Money Services Businesses Along the Southwest Border

Key Takeaway

On September 2, 2026, FinCEN reissued its Geographic Targeting Order (GTO) requiring money services businesses (MSBs) along the southwest U.S. border to file Currency Transaction Reports (CTRs) for cash transactions between $1,000 and $10,000. In doing so, FinCEN dropped counties in California and Arizona from the GTO’s coverage and made coverage more granular; instead of applying to whole counties in Texas and New Mexico, it will only apply to certain zip codes.  On September 8, 2026, FinCEN published frequently asked questions giving guidance to institutions implementing its order.

Introduction

On March 10, 2026, FinCEN renewed its GTO subjecting MSBs located in certain counties in Arizona, New Mexico, and Texas and certain zip codes in California to enhanced reporting requirements. MSBs provide financial services outside of a formal bank, and the GTO requires them to file CTRs for cash transactions between $1,000 and $10,000, as a means to combat drug trafficking. This order was set to expire, and the September 2, 2026, reissuance extends the GTO to March 1, 2027. The GTO also modifies the geographic area to which it applies.

Background

Ordinarily, financial institutions must file a CTR only for cash transactions above $10,000. Through a GTO, FinCEN can both lower this threshold and/or extend the reporting requirement to certain nonfinancial institutions if the Secretary of the Treasury finds that reasonable grounds exist for concluding that additional recordkeeping and reporting requirements are necessary to carry out the purposes of the Bank Secrecy Act (BSA). The maximum effective period for a GTO is 180 days unless renewed.

The new GTO represents a continuation of FinCEN’s efforts to target criminal activity on the southern border by deterring access to the U.S. financial system. FinCEN published the original GTO on March 14, 2025, and subsequent renewals were published on September 10, 2025, and March 10, 2026. You can read more about the original GTO in this client alert.

Coverage

As with the prior GTOs, the latest GTO covers MSBs as defined under the BSA, including money transmitters, currency exchanges, and check cashers. Notably, this GTO removes areas of Arizona and California that were covered under the March 2026 GTO. The remaining covered areas now include specific zip codes in Bernalillo, Doña Ana, and San Juan counties in New Mexico, and Cameron, El Paso, Hidalgo, Maverick, and Webb counties in Texas.

The revised geographic scope appears to account for an injunction imposed by the United States District Court for the Southern District of California and upheld by the Ninth Circuit Court of Appeals, in Novedades y Servicios Inc. v. Financial Crimes Enforcement Network, 25-4238 (9th Cir. 2026), that temporarily enjoined FinCEN from enforcing the March 2025 GTO in the Southern District of California. The District Court in that case held that FinCEN violated the Administrative Procedure Act by failing to implement the GTO through a notice-and-comment rulemaking process.

Obligations

MSBs located in the covered geographic area must file CTRs with FinCEN for cash transactions (in either US or foreign currency) between $1,000 and $10,000 and maintain records of these reports. The standard CTR requirement for MSBs to file reports on cash transactions of $10,000 or above also remains in effect. MSBs must additionally identify and verify the identities of people presenting such transactions, including by collecting information such as names, addresses, account numbers, and tax identification numbers. Verification may be conducted by submitting ID documents normally accepted in the banking community, such as a driver’s license or passport.

As noted in the frequently asked questions, covered entities must file CTRs within 30 days of the underlying transaction using FinCEN’s E-Filing System and should record the term “MSB0926GTO” in Field 45 of Part IV of the filing.

The Bigger Picture

Litigation continues to cloud the picture for the future of GTOs. In addition to the California case noted above, in Texas Association for Money Services Businesses v. Bondi, No. 5:25-cv-00344 (W.D. Tex.), the United States District Court for the Western District of Texas issued an injunction against the March 2025 GTO. While that injunction only applied narrowly to the members of the plaintiff trade association, ongoing litigation creates uncertainty surrounding the coverage and implementation process for future GTOs.