The $200 question: How financial surveillance in border counties threatens freedom and privacy
By willowt // 2025-03-19
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  • The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has lowered the cash reporting threshold to $200 in 30 ZIP codes across seven border counties in California and Texas, a significant reduction from the long-standing $10,000 threshold.
  • The rule targets money services businesses (MSBs) to disrupt illicit financial flows tied to Mexican drug cartels, designated as Foreign Terrorist Organizations under President Trump’s executive order.
  • Critics argue the rule imposes excessive financial surveillance, requiring personal information for routine transactions, potentially affecting millions of law-abiding citizens and eroding privacy rights.
  • This move aligns with a pattern of expanding financial oversight, including previous proposals under the Biden administration to report earnings as low as $600, raising bipartisan concerns about government overreach.
  • While combating cartels is crucial, critics urge the administration to prioritize targeted intelligence, border security and international cooperation over broad surveillance measures that risk undermining civil liberties.
The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a new rule that dramatically lowers the cash reporting threshold to $200 in select border counties, sparking a heated debate over privacy, freedom and the efficacy of government overreach. This move, part of a broader effort to combat drug cartels and money laundering, has raised alarms among conservatives and civil liberties advocates who see it as an unprecedented expansion of financial surveillance.

The New Rule: A $200 Threshold in Border Counties

Under the Geographic Targeting Order (GTO), money services businesses (MSBs) in 30 ZIP codes across seven counties in California and Texas must now file Currency Transaction Reports (CTRs) for any cash transaction exceeding $200. This marks a stark departure from the long−standing federal threshold of $10,000, which has been in place since the 1970s. The affected counties include San Diego and Imperial in California, and Cameron, El Paso, Hidalgo, Maverick and Webb in Texas. Treasury Secretary Scott Bessent defended the move, stating, “Today’s issuance of this GTO underscores our deep concern with the significant risk to the U.S. financial system of the cartels, drug traffickers and other criminal actors along the Southwest border.” The administration argues that this measure is necessary to disrupt the flow of illicit funds tied to Mexican drug cartels, which have been designated as Foreign Terrorist Organizations (FTOs) under President Trump’s executive order.

A Slippery Slope: Privacy vs. Security

While the intent to combat cartel activity is laudable, the implications for everyday Americans are troubling. CTRs require financial institutions to collect and report personal identifying information, including Social Security or tax ID numbers, for any transaction exceeding the threshold. This means that routine activities—such as withdrawing $200 from an ATM or cashing a paycheck—could now trigger federal scrutiny. Nicholas Anthony, a policy analyst at the Cato Institute, warns, “More than one million Americans are about to face a new level of financial surveillance. Financial surveillance in the United States has long needed reform, but this move is in the wrong direction.” Anthony argues that the $10,000 threshold, established in 1972, is already outdated and should be adjusted for inflation, not lowered further. Historically, the 10,000 threshold was set to balance the need for financial transparency with the protection of individual privacy. Adjusted for inflation, that amount would now be between 72,880 and $180,000, depending on the starting point. Instead of raising the threshold to reflect modern economic realities, the Trump administration has chosen to lower it to a level that could ensnare countless law-abiding citizens.

The Broader Context: A Pattern of Overreach

This move is not an isolated incident but part of a broader trend of expanding financial surveillance. During the Biden administration, similar efforts were proposed, such as requiring gig economy platforms to report earnings as low as $600 to the IRS. While those measures were met with significant backlash and ultimately scaled back, they highlight a bipartisan willingness to encroach on financial privacy in the name of security or tax compliance. The Trump administration’s focus on border security is well-documented, with repeated calls from Republicans to take aggressive action against Mexican cartels. However, as with foreign policy, domestic measures must be carefully calibrated to avoid overreach. Subjecting millions of Americans to heightened financial surveillance risks eroding trust in government and undermining the very freedoms the administration claims to protect.

A Call for Balance

There is no doubt that combating drug cartels and money laundering is a critical national security priority. However, the means must not outweigh the ends. Lowering the cash reporting threshold to $200 in border counties sets a dangerous precedent, one that could easily be expanded to other regions or applied to other forms of financial activity. As conservatives, we must advocate for policies that protect both security and liberty. This means pushing back against measures that disproportionately burden law-abiding citizens while failing to address the root causes of criminal activity. Instead of expanding financial surveillance, the administration should focus on targeted intelligence gathering, enhanced border security and international cooperation to dismantle cartel networks. The $200 question is not just about money—it’s about the kind of country we want to live in. Will we sacrifice our privacy and freedom in the name of security, or will we find a way to protect both? The answer will define the legacy of this administration and the future of our republic. Sources include: ReclaimTheNet.org FinCen.gov FoxNews.com Reason.com
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