The US Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has lowered the threshold for currency transaction reports from $10,000 to $200 for Americans living in 30 zip codes in California and Texas. This change aims to combat money laundering by Mexico-based cartels but is widely seen as a step in the wrong direction.
The move is part of a broader trend towards increased financial surveillance, which has long been needed for reform. Critics argue that this policy change will lead to an erosion of civil liberties and may have negative economic consequences.
The threshold was already overdue for adjustment, with many experts calling for it to be adjusted for inflation. The current system, established in the 1970s, is seen as overly restrictive by some. A drastic increase in financial surveillance makes the problem worse.
Organized crime is a significant challenge, but stripping Americans’ rights in pursuit of justice is not the solution. As noted by Fight for the Future, “Should [criminals] successfully tempt the United States to abandon the human right to privacy and the U.S. Constitution, everyone will lose.” The current policy change raises concerns about the limits of government power and the potential impact on individual freedoms.
This move follows a pattern of increased surveillance by previous administrations, with the Biden administration surveilling bank accounts with as little as $600 in activity. The Trump administration’s new threshold of $200 is seen as another step towards erosion of civil liberties.
Source: https://www.cato.org/blog/trump-treasury-expands-financial-surveillance