FinCEN issues Minnesota Geographic Targeting Order and alert to tighten reporting on outbound transfers and child nutrition fraud

The Financial Crimes Enforcement Network (FinCEN) published a package of measures aimed at combating government benefits fraud in Minnesota, including a new Geographic Targeting Order (GTO) expanding reporting expectations for certain international funds transfers and an alert to help financial institutions detect and report fraud linked to Federal child nutrition programs. The GTO requires banks and money transmitters located in Hennepin and Ramsey Counties to report additional information about funds transferred outside of the United States. The alert urges financial institutions to identify and report fraud associated with Federal child nutrition programs in Minnesota. FinCEN also issued four notices of investigation to Minnesota-based money services businesses requesting information for Bank Secrecy Act examination and investigative purposes, and provided in-person training to federal, state, and local law enforcement on using financial data such as Suspicious Activity Reports to better combat these schemes. To support compliance, FinCEN published a GTO submission template and template dictionary alongside the order submitted to the Federal Register.