Treasury Secretary Scott Bessent announced Friday a series of federal actions aimed at combating large-scale government benefits fraud in Minnesota, citing billions of dollars in taxpayer losses tied to organized fraud rings.
Treasury’s Financial Crimes Enforcement Network has issued four notices of investigation to Minnesota-based money services businesses and imposed new reporting requirements on banks and money transmitters in Hennepin and Ramsey counties for certain international transfers. The IRS is auditing financial institutions tied to the schemes and plans to launch a task force targeting pandemic-era tax incentive abuse and misuse of nonprofit status.
FinCEN also issued an alert to help financial institutions identify fraud involving federal child nutrition programs, which Treasury said has cost taxpayers at least $300 million in Minnesota, and provided training to law enforcement to strengthen investigations and prosecutions.
Read the Treasury Department Press Release
