Federal financial surveillance begins in 7 San Diego ZIP codes, sparking lawsuit

A new federal mandate from the U. S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) requires money services businesses in seven ZIP codes of San Diego County to file reports for transactions exceeding $200, a significant reduction from the previous threshold of $10,000. This geographic targeting order aims to combat money laundering and cartel activities prevalent along the U. S.

-Mexico border. Local business owner Esperanza Gomez Escobar is suing to halt the order, arguing that it violates the Fourth Amendment by necessitating the collection of sensitive customer data without probable cause. Employees at her business have reported transaction delays as customers are hesitant to share personal information, like Social Security Numbers. A Treasury official stated that the department is committed to helping businesses comply with the reporting requirements while acknowledging the vulnerability of the southwest border to criminal activities. The ruling is temporary, lasting 180 days, but there are concerns that FinCEN may extend it.

Critics warn that if the order expands, it could set a precedent for increased surveillance affecting all citizens. Local business representatives emphasize the need to protect their customers' privacy and the potential chilling effect on legitimate transactions.