**New Trump Administration Rule Targets Cash Transactions Under $200**
In a move that might raise eyebrows amongst cash-loving Americans, the Trump Administration recently rolled out a financial reporting rule aimed at capturing cash transactions as low as $200. This new regulation comes courtesy of the Department of the Treasury’s Financial Crimes Enforcement Network, otherwise known as FinCEN. Starting in April, individuals living or conducting business in one of 30 specific zip codes across California and Texas will need to think twice before pulling out the cash for their purchases.
Under the banner of combating illicit activities and money laundering, particularly in relation to Mexico-based cartels, this new Geographic Targeting Order (GTO) is set to drastically lower the cash reporting threshold from the familiar $10,000 down to a mere $200. To put that in perspective, if you’ve ever thought about buying those ultra-luxe cashmere socks or splurging on a round of money orders just for fun, you might want to grab your notepad. Starting April 14, 2025, your cash transactions over $200 could prompt a currency transaction report, or CTR, to be filed with FinCEN.
This order affects over a million Americans living in certain counties in California and Texas, including Imperial and San Diego counties in California, as well as Cameron and El Paso counties in Texas, among others. The businesses impacted by this new rule include check-cashing services, money order sellers, and companies that transmit money. These money service businesses (MSBs) will be required to keep a keen eye on cash transactions and report any that meet or exceed the $200 threshold. It’s a big change, folks, and one that’s designed to help law enforcement tackle the nefarious underbelly of financing.
Currently, banks report currency transactions of $10,000 or more, but this will now see a staggering shift in the amount of cash being monitored. The $10,000 threshold has stood unchanged since 1972, and some financial experts argue that it should have been adjusted for inflation. If it had been, it would have risen to nearly $80,000! Just imagine how many more people would be able to enjoy their cash without the watchful eye of financial regulatory agencies were that the case.
While it’s not illegal to deal in cash, this new rule certainly brings a spotlight to significant cash transactions. FinCEN’s goal is clear: to ensure taxpayers remember that their cash is being tracked and taxed accordingly, especially in cases where funds may not have been earned legitimately. Money that comes from unsavory sources, often referred to as “dirty” money, has a tougher time mingling with “clean” funds. As they say, cash is king—but it might just be on a shorter leash now.
In an era where financial monitoring continues to ramp up, this new GTO is a reminder that the government is paying closer attention to how cash moves through our economy. Whether you are a casual spender or just trying to exchange some money for those frilly snacks, being aware of these developments will pose a larger question: Is cash really still king when Big Brother is watching? As we approach April, it might be time to brush up on those cash transaction habits. Keep your receipts handy and prepare for some new financial gymnastics!
