By PAUL O’DONOGHUE, Senior Correspondent
MONEY stolen in fraud schemes in Minnesota was laundered overseas according to FinCEN, the AML unit of the U.S. Treasury.
The organization said it is looking to track transactions in an effort to recover funds taken by scammers.
FinCEN said that fraudsters stole funds “meant for people who lack housing, have disabilities, or are otherwise eligible to receive government benefits”.
It said this has cost the state of Minnesota “hundreds of millions, if not over a billion, dollars – a portion of which was laundered overseas”.
Officials have charged almost 100 people, many from the Somali community, with siphoning funds from several public initiatives.
Last week the Treasury announced several measures as part of a wider crackdown on fraud in Minnesota.
These include a GTO (Geographic Targeting Order) applying to financial institutions in Hennepin and Ramsey Counties. They must now report certain transactions of $3,000 or more to FinCEN. This applies when the beneficiary is located outside of the United States.
In a new FAQ for the GTO, FinCEN said the measure will “enhance ongoing investigations”.
“[The GTO will] generate new leads and investigations, assist efforts to track funds laundered internationally, and facilitate efforts to recover fraudulently obtained funds, FinCEN said.
The GTO is effective from February 12 through August 10, 2026. It applies to banks and money transmitters which have operations in the covered area.
FinCEN has also issued four notices of investigation to money services businesses located in Minnesota.Additionally, it has issued an Alert with ‘red flags’ to help financial institutions identify and report fraud associated with Federal child nutrition programs.
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