The U.S. Treasury has launched an effort to combat fraud networks in Minnesota to strengthen the state’s financial system and protect taxpayers.
Actions include the Financial Crimes Enforcement Network (FinCEN) issuing notices of investigations to money services businesses in Minnesota, the IRS launching a fraud task force to audit institutions facilitating money laundering, issuing a geographic targeting order to report information about funds transferred outside of the United States, forming an alert system to target fraud rings, and training law enforcement in financial data use.
According to the Treasury Department, the geographic targeting order allows federal, state, and local law enforcement to receive additional information in their investigations, as officials currently have “limited insight into the persons located abroad who receive the proceeds of the frauds.” Businesses will be “required to file reports with FinCEN above certain transactions of $3,000 or more where the beneficiary is located outside of the United States.”
“President Trump has instructed the administration to bring accountability for the hardworking people of Minnesota,” Secretary of the Treasury Scott Bessent said in a statement. “Under Democratic Governor Tim Walz, welfare fraud has spiraled out of control. Billions of dollars intended for feeding hungry children, housing disabled seniors, and providing services for children in need were diverted to benefit Somali fraud rings.”
While the Treasury is taking action to address rampant fraud, Vice President JD Vance announced on Thursday that the Trump administration is creating a new Assistant Attorney General position to investigate cases of fraud. “That person’s efforts will start and focus primarily in Minnesota – but it is going to be a nationwide effort, because unfortunately, the American people have been defrauded in a very nationwide way,” he stated.
