The U.S. Treasury Department has announced a new multi-agency strategy aimed at strengthening federal oversight of financial crimes involving public assistance programs, with Minnesota selected as the first state in which the measures will be deployed.
Treasury Secretary Scott Bessent shared the details during a visit to the Minneapolis–Saint Paul region on January 9, describing the effort as part of a longer-term plan to modernize the government’s approach to fraud prevention and cross-border financial tracking. The initiative focuses on strengthening data sharing, tightening regulatory reviews, and expanding investigative resources.
Interagency Coordination and New Enforcement Tools
According to Treasury officials, several federal units will play key roles in the rollout:
• FinCEN Oversight Reviews – The Financial Crimes Enforcement Network recently initiated formal examinations of money services businesses operating outside traditional banks to determine their compliance with federal anti-money-laundering rules.
• IRS Special Task Group Formation – A team within the Internal Revenue Service will begin reviewing claims involving pandemic-era tax programs and nonprofit tax exemptions to determine whether federal incentives were improperly leveraged.
• Outbound Transaction Reporting – A geographic reporting order has been issued for financial institutions in Hennepin and Ramsey counties, requiring more detailed information on certain outbound transfers to international recipients. Treasury officials said the measure is intended to identify suspicious movements of public program funds.
• National Financial Advisory Notice – Banks and credit unions across the country were also sent a compliance advisory outlining indicators associated with misuse of federal nutrition funding, encouraging quicker reporting of suspected irregularities.
• Training and Technical Assistance – Federal analysts have begun on-site instruction for Minnesota law enforcement agencies on how to utilize Suspicious Activity Reports and other financial datasets during local investigations.
State and Federal Officials Respond
While the administration emphasized the reforms as a proactive step toward protecting public money, the announcement also drew political scrutiny within the state. Minnesota officials noted that regulators and prosecutors there have already taken action on multiple fraud cases and argued that broader economic indicators remain strong.
According to state employment data released the same day, Minnesota recorded job growth outpacing the national average at the end of 2025 and maintained a lower unemployment rate than the country as a whole.
Additional Federal Resources to Follow
The Treasury rollout comes alongside Justice Department activity in the region. U.S. Attorney’s Office officials confirmed that additional federal prosecutors will be temporarily assigned to Minnesota to support ongoing financial investigations.
Bessent also met with community leaders, private sector financial compliance groups, and fraud victims during his trip. He said the Treasury Department intends to evaluate the Minnesota deployment over the coming months before expanding the oversight model to other states.
“Strengthening federal safeguards on public funding is essential to maintaining trust in the programs people rely on,” Bessent said, noting that the effort is expected to continue into 2027.
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