The Financial Crimes Enforcement Network has issued an alert urging financial institutions to identify and report fraud associated with federal child nutrition programs in Minnesota, and it released a geographic targeting order directing banks and money transmitters in two Minnesota counties to report additional information about certain funds transferred outside the U.S., according to a Treasury Department announcement.
Treasury Secretary Scott Bessent today announced several actions in response to allegations of fraud involving public assistance programs in the state. They are:
- FinCEN issued four notices of investigation to money services businesses located in Minnesota, requesting information for examination and investigative purposes under the Bank Secrecy Act.
- The IRS civil enforcement will audit financial institutions involved in the allegations, and the agency has formed a task force to further investigate the use of federal funds in the state.
- FinCEN released a geographic targeting order requiring banks and money transmitters located in Hennepin and Ramsey counties, which include Minneapolis and St. Paul, to report additional information for transactions of $3,000 or more to recipients outside the U.S.
- FinCEN published an alert with “red flags” to help financial institutions identify specific types of fraud involving child nutrition programs and report the activity to law enforcement.
- FinCEN will provide on-the-ground training for Minnesota-based federal, state and local law enforcement on how to utilize financial data, such as suspicious activity reports.
