Think your ATM withdrawals are private? Taking out $200 could now put you on the Federal Financial Surveillance radar in these American counties

US Treasury Department's Financial Crimes Enforcement Network (FinCEN) will track cash transactions in some geographical regions in the United States to address illegal activities, as per a report.

New Rule Puts Cash Transactions Under Federal Surveillance

A new regulation that took effect this week mandates reporting to financial institutions in seven border counties all cash deposits and withdrawals of $200 or more, a significant decrease of the reporting threshold of $10,000 which is followed in the rest of the country, Reason reported.

The regulation, designed to help fight money laundering and cut the operations of Mexico-based drug cartels, could end up expanding government surveillance of its citizens residing in these regions, as per the report.
The seven California and Texas counties are San Diego and Imperial Counties in California, and Cameron, El Paso, Hidalgo, Maverick, and Webb Counties in Texas are now subject to this financial monitoring, reported Reason.

How Does This Change Affect Everyday Transactions?

Under the new regulation, companies such as check-cashing outlets and money exchanges in these counties are required to report Currency Transaction Reports (CTRs) with FinCEN whenever a cash transaction reaches the $200 threshold, as per the report. This is a cut from the current threshold of $10,000, which has been maintained since 1972, reported Reason. As per federal law, any cash transaction of $10,000 or more necessitates individual information like a Social Security number, which is documented and forwarded to the government for examination, according to the report.

Live Events

Concerns Over Privacy

This action has been criticized by privacy groups. Nicholas Anthony, a Cato Institute policy