Currency Transaction Reports (CTRs) with FinCEN

Geographic Targeting Orders (GTO) and Their Impact on MSBs

Today, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) announced a new Geographic Targeting Order (GTO) aimed at combating the growing threat of money laundering and illicit activities tied to Mexico-based cartels and other criminal groups operating along the U.S. southwest border. The order mandates that all money services businesses (MSBs) within 30 ZIP codes across California and Texas report cash transactions exceeding $200 by filing Currency Transaction Reports (CTRs) directly with FinCEN. This step is part of a broader effort to increase oversight and disrupt the financial operations of criminal organizations in the region.

What are Currency Transaction Reports (CTRs)?

A Currency Transaction Report (CTR) is a report that financial institutions, such as banks, are required to file with government authorities when a customer conducts (a large) currency transaction. The purpose of the CTR is to help detect and prevent money laundering, tax evasion, and other illicit financial activities.

“On 12.03.2025 the 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,” said Secretary of the Treasury Scott Bessent. “As part of a whole-of-government approach to combatting the threat, Treasury remains focused on leveraging all our available tools and authorities to better identify and counter these criminal activities.”

Combatting drug cartels and stopping the flow of deadly drugs into the United States is one of the Administration’s highest priorities. In January, President Donald J. Trump issued an Executive Order creating a process by which certain cartels and other organizations would be designated as Foreign Terrorist Organizations (FTOs) and/or Specially Designated Global Terrorists (SDGTs). Accordingly, in February, the U.S. Departments of the Treasury and State designated eight organizations, including six major Mexico-based drug cartels, as FTOs and SDGTs. These designations will allow the United States to take further steps to deny individuals and entities associated with these groups access to the U.S. financial system.

How DX Can Help with Currency Transaction Reporting:

The DX AML Plattform automates the collection, processing, and submission of CTR data. Automation reduces human error, streamlines data entry, and ensures reports are filed accurately and on time. DX integrated real-time transaction monitoring systems, enabling automatic flagging of suspicious CTR relevant transactions above the reporting threshold, streamlining compliance. DX can integrate various data sources and provide unified platforms for reporting CTRs and ensuring compliance with regulatory standards. Our Platforms creates a comprehensive, time-stamped audit trail for every transaction and report filed, ensuring that institutions can track and review historical compliance data.

In essence, DX enhances the ability to file Currency Transaction Reports efficiently, minimize errors, stay compliant, and reduce risks, all while streamlining internal workflows and adapting to evolving regulatory requirements.

Consequences of Non-Compliance with CTR filing.

Failure to comply with Currency Transaction Report (CTR) filing requirements can have serious consequences for businesses, ranging from legal repercussions to severe financial penalties. The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) enforces strict regulations to combat money laundering and financial crime, and non-compliance can undermine these efforts.One of the most immediate risks of non-compliance is the imposition of substantial fines. Financial institutions, including banks and money services businesses (MSBs), are required to file CTRs for all cash transactions a certain threshold. ailure to report a single transaction—or multiple transactions that aggregate to more than the threshold—can result in fines. The penalties for non-compliance can range from $500 per violation for willful neglect to as high as $10,000 per violation for willful failure to file or for false reporting.To avoid these risks, businesses must prioritize compliance with FinCEN regulations, implementing robust internal controls to ensure proper reporting of cash transactions and other financial activities.