Judge Halts Federal Scrutiny of $200 Transactions
Among the many intrusions of the federal government into our lives is the requirement that cash transactions of $10,000 or more be reported to the authorities. It’s just one exercise in surveillance of our lives that should be done away with. But instead of abolishing currency transaction reports, the federal government recently lowered the reporting threshold to $200 in some border areas. Fortunately, a federal judge blocked enforcement of the order in California while legal challenges move forward.
Targeting Criminals While Burdening the Innocent
“Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued a Geographic Targeting Order (GTO) 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,” the U.S. government’s Financial Crimes Enforcement Network announced March 11. “The GTO requires all money services businesses (MSBs) located in 30 ZIP codes across California and Texas near the southwest border to file Currency Transaction Reports (CTRs) with FinCEN at a $200 threshold, in connection with cash transactions.”
A decade ago, the policy change might have been justified in the name of fighting terrorists; these days, the feds fret over criminal cartels (although, as Reason‘s Joe Lancaster reported, President Donald Trump split the difference by designating cartels as terrorists). But no matter who government officials claim to be targeting, the burden of compliance always falls on individuals and small businesses.
The change is a big one. Prior to the March 11 announcement, the threshold had been set at $10,000 since 1972. The dollar has lost much of its purchasing power since then, meaning that more and more transactions are subject to the reporting requirement, increasing the burden of compliance.
Creeping Surveillance Through Inflation
“The inflation-adjusted threshold in 2023 would have been about $72,880,” a December 2024 Government Accountability Office (GAO) report observed. “Using an inflation-adjusted threshold would have reduced the number of CTRs filed by at least 90 percent annually since 2014.”
Not only are Americans suffering under intrusive paperwork, but law
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