A measure introduced by the Trump administration last April to curb money laundering near the US-Mexico border has inadvertently hit small mom-and-pop businesses, a new report shows. The rule drastically lowered the threshold for reporting cash transactions to $200, down from the previous $10,000, applying to any financial service provider in the region.
The administration described the change as a tool to disrupt cartel activity and illicit financial flows. However, the unintended consequences have been severe for local businesses, which now face a heavy compliance burden and disruptions to their day-to-day operations. The Guardian’s investigation highlights how the crackdown has created a hidden toll for small enterprises that are essential to border communities.