Ninth Circuit Blocks FinCEN’s Southwest Border Geographic Targeting Order
The Ninth Circuit halted FinCEN’s Southwest Border Geographic Targeting Order on September 15, 2026.
Why it matters: This decision suspends FinCEN’s power to mandate cash transaction reports from specified MSBs at the border, complicating AML compliance for financial entities and their legal counsel.
- The GTO required MSBs near the U.S.-Mexico border to report cash transactions between $1,000 and $10,000.
- It affected counties and ZIP codes in Arizona, California, New Mexico, and Texas from March 7 to September 2, 2026.
- FinCEN said the order targeted risks from cartel and drug trafficking to the financial system and public health.
- The Ninth Circuit’s September 15 decision barred enforcement of these geographic-specific reporting rules.
On September 15, 2026, the Ninth Circuit Court of Appeals issued an injunction blocking the Financial Crimes Enforcement Network’s (FinCEN) Southwest Border Geographic Targeting Order (GTO). This GTO mandated that certain money services businesses (MSBs) operating in border areas file Currency Transaction Reports for cash transactions ranging from $1,000 to $10,000.
Effective from March 7 through September 2, 2026, the order applied to designated counties and ZIP codes along the U.S.-Mexico border in Arizona, California, New Mexico, and Texas. The goal was to enhance anti-money laundering (AML) efforts by tracing cash flows linked to drug trafficking and cartel activity, as explained in FinCEN’s public statement here.
FinCEN Director Andrea Gacki stated in a press release that the agency targets criminal actors threatening the U.S. financial system and public health, emphasizing the importance of geographic-specific reporting to disrupt illicit finance at the Southwest border.
The Ninth Circuit’s ruling stops FinCEN from enforcing the reporting obligations under the GTO, creating uncertainty for MSBs and financial institutions subject to the Bank Secrecy Act. Legal and compliance teams must reassess risk management and reporting strategies in these jurisdictions. According to court documents, the ruling focused on statutory and procedural grounds, but the detailed opinion has not been fully published.
For legal professionals advising firms along the border, this decision signals a critical shift in the regulatory landscape and highlights ongoing judicial scrutiny of FinCEN’s geographic targeting authority.
By the numbers:
- $1,000–$10,000 — cash transaction range subject to reporting under the GTO
- March 7 to September 2, 2026 — effective period of the Southwest Border GTO
- September 15, 2026 — date of the Ninth Circuit’s injunction blocking the GTO
Yes, but: The full Ninth Circuit opinion is pending publication, so further legal analysis may clarify the court’s reasoning and potential impacts.
What's next: FinCEN may seek to appeal the injunction or issue revised targeting orders to address the court’s concerns; stakeholders should monitor updates.