A federal judge has issued a temporary restraining order in favor of two money service businesses in El Paso as they pursue legal action against the U.S. Treasury Department’s financial crimes division.
U.S. District Judge Leon Schydlower issued his ruling Tuesday, On June 24, almost two weeks following the oral arguments in the case challenging the Treasury Department's Geographic Targeting Order.
Schydlower called the order "arbitrary and capricious," and pointed out that the plaintiffs, the Valuta Corporation and Payan Fuel Center, "will suffer immediate and irreparable harm absent emergency injunctive relief, including the threat of business closure, reputational injury, and loss of customers and goodwill."
Schydlower of El Paso hears cases in the U.S. District Court for the Western District of Texas.
The Treasury Department's Geographic Targeting Order was issued in April and had required money service companies that provide services like check cashing, currency exchange, money transfers, and money orders to collect client personal information — including Social Security or green card numbers and a home address — of anyone who carries out a transaction of over $200. The previous limit was $10,000.
Customers rely on money service companies to cash checks, purchase money orders and send money to loved one outside of the U.S.
The order affected 30 zip codes in El Paso, Hidalgo, Maverick, Webb and Cameron counties in Texas. It also involved businesses in San Diego and Imperial counties in California.
Attorneys for the plaintiffs contended that the Trump administration’s directive subjects working-class clients to financial monitoring and imposes an additional strain on money service businesses.
The plaintiffs claimed that the U.S. Treasury Department's Financial Crimes Enforcement Network directive generated excessive documentation burdens and resulted in the loss of clientele.
"I am just so thankful for the relief," Ashley Light, the owner the Valuta Corporation in El Paso, said. "I do really wish that it could have been extended to the rest of the small businesses that are affected by this because we cannot be the ones that are putting so much time and effort into this."
The legal action marked the third such case brought against the Trump administration’s directive. Federal courts in both California and San Antonio, Texas, have temporarily halted this directive.
According to Andrew Ward, who leads the legal team from the Institute for Justice, all three judges agree that this directive is probably illegal," he stated. "We are pleased that the court has acknowledged this fact. Now we anticipate progressing toward a definitive ruling to completely eliminate this directive.
Ward anticipates that a concluding order might be issued around July.
Jeff Abbott reports on the border for the El Paso Times and can be contacted at: [email protected] ; @palabrasdeabajo on Twitter [email protected] on Bluesky.
The article initially appeared in the El Paso Times. A federal judge blocks a financial monitoring directive aimed at two money service businesses in El Paso.