Treasury Turns A Little-Known Financial Weapon On Minnesota Benefits Fraud |
The federal government is stepping up its response to alleged government benefits fraud in Minnesota.
During a visit to the Twin Cities this month, Treasury Secretary Scott Bessent outlined a broad enforcement effort that includes new investigations, expanded audits, and the use of a little-used enforcement order that requires banks to report more transaction data.
The Geographic Targeting Order, or GTO is a temporary directive issued by the Treasury Department’s Financial Crimes Enforcement Network, known as FinCEN. Best known to taxpayers as the agency that processes Foreign Bank Account Reports (FBARs), FinCEN oversees the federal government’s anti–money laundering system and has the authority to require additional financial reporting when it believes criminal activity is happening in a specific area.
In this case, the GTO targets Hennepin and Ramsey Counties, which include Minneapolis and St. Paul. It focuses on international money transfers of $3,000 or more. Beginning February 12, 2026, banks and money transmitters in those counties must collect and report extra information on certain outbound transfers, particularly when the recipient is located outside the United States.
The order is part of a broader set of actions unveiled by Treasury. Those include investigations of Minnesota-based money services businesses, enhanced IRS audits, more law enforcement training, and a formal alert warning banks about fraud tied to federal child nutrition programs. The moves signal a much tougher federal approach to benefits fraud—and a willingness by the Trump administration to use GTOs beyond their traditional role.
GTOs are one of FinCEN’s most flexible tools for fighting crime. Under the Bank Secrecy Act (BSA), Treasury can temporarily require extra financial reporting in specific locations when it suspects illegal activity.
In recent years, GTOs have also been used to track suspected money laundering related to real estate and near the southern border.
Unlike permanent regulations, GTOs are short-term—usually lasting 180........