A federal judge in Texas has temporarily blocked a new Trump administration policy targeting small-dollar cross-border transactions aimed at curbing cartel money laundering, siding with two businesses who argued it was crippling their operations and scaring off customers.
In a June 24 ruling, U.S. District Judge Leon Schydlower granted a temporary restraining order to Valuta Corporation and Payan’s Fuel Center, two El Paso-based money services businesses, finding they were likely to succeed on their claim that the policy—requiring reports of cash transactions as low as $200—was arbitrary and capricious.
The policy, imposed by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) through a Geographic Targeting Order (GTO) issued March 11, mandates that money service businesses in 30 ZIP codes across California and Texas file currency transaction reports on all cash transactions between $200 and $10,000. The reporting threshold was previously set at $10,000 under longstanding Bank Secrecy Act rules….