Papers, Please!

The Identity Project

Monthly Archives: March 2025

Mar 17 2025

FinCen demands reporting of cash transactions over $200

The Financial Crimes Enforcement Network (FinCEN) of the US Department of the Treasury has ordered all money transfer agencies and currency exchanges in seven counties in California and Texas along the US-Mexico border to file reports with FinCEN including the identities of the customers engaging in all cash transactions over $200.

Implicit in this order is that would-be customers who are unable or unwilling to provide sufficient evidence of their identity (and to allow that information and the details of their transaction to be passed on to FinCEN) will be denied these financial services.

The Geographic Targeting Order published by FinCEN in the Federal Register last Friday is effective for transactions with financial services businesses in those counties from April 14, 2025, through September 9, 2025. The Bank Secrecy Act, which authorizes such orders, limits them to 180 days but allows them to be renewed an unlimited number of times.

The misleadingly-named Bank Secrecy Act is already subject to abuse as an enabler and pretext for financial surveillance, and already requires reporting of cash transactions of $10,000 or more. But so far as we’ve been able to determine, this order lowering the reporting threshhold to $200 is, even for a geographically limited area, unprecedented.

Other Geographic Targeting Orders have been issued, but typically with much higher threshholds — real estate transactions over $50,000 in Baltimore, for example. Why Baltimore, with a lower threshhold than anywhere else in the US? FinCEN didn’t say.

The new order goes against growing bipartisan calls in Congress to repeal the Bank Secrecy Act or at least raise the threshhold amounts for for customer identification and transaction reporting.

Nothing in the order gives any real justification for its geographic boundaries.  More than a million people live in the area covered by the order, but it will actually affect a much larger number of people. Many travellers stop at “Casas de Cambio” on their way to and from border crossings in these counties to exchange cash dollars for pesos and pesos for dollars.

It’s unclear whether the goal of the order is primarily harassment or surveillance. The costs of completing the extra paperwork will undoubtedly drive up currency exchange and remittance fees and waste time for financial service businesses and their customers.

Mar 12 2025

State Department puts “X” passport applicants in limbo

The US State Department is withholding passports from some US citizens, effectively denying them the ability to leave or return to the US, without any basis in law or regulations.

Multiple news outlets have reported that the State Department has ordered its staff in the US and abroad to “suspend” processing of all pending applications for new or renewal US passports or passport cards with an “X” gender marker.

A new page of the State Department’s website suggests that each of these passport applicants will (eventually) be notified that their application has been “suspended” and will remain “suspended” (i.e. that they won’t be issued a passport) unless and until they provide “certain documents and records to help us establish your biological sex”.

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Mar 03 2025

Treasury Department says it won’t enforce ID requirement for corporate principals

The US Department of the Treasury has announced that it plans not to enforce the provisions of the Corporate Transparency Act (CTA) that were to go into effect next month requiring owners and principals of all corporations to file copies of government-issued ID credentials, including photos, with the Financial Crimes Enforcement Network (FinCEN).

The Treasury Department also says it plans to propose revisions to the CTA regulations that would limit the ID-filing requirement to principals of “foreign reporting companies”, a term that doesn’t appear in the statute and isn’t defined in the announcement.

We don’t want the government to try to enforce the CTA reporting requirement. But if the law isn’t going to be enforced, it should be repealed, not left on the books as a Sword of Damocles available to prosecutors to threaten or persecute disfavored businesspeople. And the proposed regulations, redefining which entities must file CTA reports, would appear to be contrary to the explicit language of the CTA statute as to who must file.

Press releases like this one form the Treasury Department aren’t binding on Federal prosecutors, even now, much less in the future. Regardless of this announcement, nobody subject to the CTA is safe from prosecution if they don’t file the reports required by the law.

There are few legal constraints on prosecutorial discretion. Many laws — including those that impose reporting and filing requirements — are routinely ignored and unenforced. Police and prosecutors, especially those with malign intentions, love to have laws like this on the books that everybody violates. That allows anyone to be prosecuted at any time, with the government claiming truthfully that it is merely “enforcing the law”. Only in rare cases is the government required to explain the real reasons why some people are prosecuted while others who are known to have violated the same laws are not.

To word it a little differently, the combination of unlimited prosecutorial discretion and universally violated laws is central to the phenomena of pretextual police action and pretextual prosecution. An essential part of the solution is the repeal of unenforced laws.

We welcome, in the short term, the nonenforcement of CTA reporting rules. And we urge Congress to address the problem, promptly, by repealing the CTA in its entirety.