Judge Blocks Treasury's Anti-Cartel Rule Targeting $200 Cash Transactions Along Border

A federal judge in Texas has temporarily blocked a Trump administration policy aimed at curbing cartel money laundering by requiring reports of cash transactions as low as $200. The policy, imposed by the Treasury Department's Financial Crimes Enforcement Network, mandated 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. Two El Paso-based businesses, Valuta Corporation and Payan's Fuel Center, argued that the policy was crippling their operations and scaring off customers, and the judge sided with them, finding they were likely to succeed on their claim that the policy was arbitrary and capricious. The businesses claimed the policy ensnared law-abiding businesses in high-risk neighborhoods, driving away customers, and overwhelming staff with red tape. The judge's ruling only shields the two businesses from further enforcement, meaning other businesses that have not joined the lawsuit are not covered. The policy was part of a broader Trump administration initiative to designate Mexican drug cartels as terrorist organizations and choke off their U.S. financing. The judge noted that the government had failed to grapple with the real-world consequences of the rule's geographic design, which penalizes businesses based solely on ZIP code boundaries. The case is one of several legal challenges to the policy, with federal judges in California and Texas previously granting preliminary injunctions.