A San Diego federal judge intervened to stop a Trump-era rule implemented by FinCEN that drastically lowered the transaction reporting threshold for money services businesses from $10,000 to $200 in selected California and Texas ZIP codes. Business owner Esperanza Gomez Escobar contended that this rule would impose excessive costs and paperwork on her company, potentially forcing it to shut down. Furthermore, Gomez argued that the rule might violate the Fourth Amendment by unconstitutionally gathering information on ordinary transactions and pointed out that criminals could easily bypass these regulations by shifting to nearby areas.
"The vast reduction in the reporting threshold is designed to combat illicit activities, but it's likely to drive legitimate businesses, like mine, into the ground."
"This rule imposes crushing costs and violates the Fourth Amendment, sweeping up information about everyday transactions that have nothing to do with criminals."
#money-laundering #financial-regulations #small-business-impact #fourth-amendment #trump-administration
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