US Treasury Probes Banks in Minnesota Fraud Scandal: Regulatory Risks Intensify
The US Treasury is investigating banks and money transfer firms linked to the Minnesota fraud scandal. Secretary Scott Bessent warned of strict accountability for AML failures.
Is your money transfer provider under the federal microscope? The US Treasury has launched a sweeping investigation into financial institutions following a massive fraud scandal in Minnesota.
US Treasury Minnesota Fraud Investigation Into Financial Institutions
According to Reuters, Treasury Secretary Scott Bessent confirmed that the department is probing money transfer firms and banks that may have facilitated the movement of fraudulent funds. The investigation stems from a high-profile case in Minnesota where federal aid was allegedly misappropriated, raising questions about whether banks ignored red flags.
Increased Scrutiny for Fintech and Remittance Firms
The probe targets the Anti-Money Laundering (AML) protocols of various firms. Investigators are reportedly looking into how millions of dollars were wired abroad or through domestic channels without triggering suspicious activity reports. "Financial institutions cannot turn a blind eye to illicit flows," Bessent stated, signaling a zero-tolerance approach toward compliance failures.
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