24-04-2025
Judge pauses enforcement of new money transfer rules in California counties
SAN DIEGO (FOX 5/KUSI) — A judge in San Diego has issued a temporary halt on a recent federal order that requires money services businesses in 30 ZIP codes across California and Texas to report all transactions over $200.
On March 11, the Financial Crimes Enforcement Network (FinCEN) under the U.S. Department of the Treasury issued a geographic targeting order (GTO), which went into effect Monday, April 14.
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Under the order, money services businesses located in 30 ZIP codes were required to file currency transaction reports with FinCEN for any transactions between $200 and $10,000. Transactions over $10,000 were already subject to money reporting prior to the GTO in accordance with existing law.
On Tuesday, U.S. District Judge Janis Sammartino in San Diego put a pause on enforcement of the new reporting rules in ZIP codes under her jurisdiction within the Southern District of California.
She cited concerns by plaintiffs challenging the legality of the GTO, saying it violates the Fourth and Fifth Amendments of the U.S. Constitution in addition to provisions of the Administrative Procedures Act, and alleged it was 'issued without sufficient statutory authority.'
The judge set a hearing for Thursday, May 15 to decide whether to issue a preliminary injunction against enforcement of the GTO in Southern California.
Seven ZIP codes in San Diego County were affected by the GTO: 91910, 92101, 92113, 92117, 92126, 92154 and 92173.
Those encompass neighborhoods like San Ysidro and Otay Mesa as well as Barrio Logan, Logan Heights, Chula Vista, Clairemont and Mira Mesa.
In addition, four ZIP codes in Imperial County and 19 others across five counties in Texas were listed in the order. A full list of the impacted ZIP codes can be found here.
According to FinCEN, the GTO was issued to uncover money laundering and prevent financial transactions by foreign drug cartels, including those located south of the border in Mexico.
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