The Department of the Treasury of the United States ordered banks and money transfer companies to report outbound transfers of u$s 3,000 or more originating in two Minnesota counties. The measure, issued by the Financial Crimes Enforcement Network (FinCEN), aims to detect money movements linked to fraud with public funds.
The order, signed by FinCEN Deputy Director Jimmy Kirby, has been in effect since August 11 and expires on February 6, 2027, although it may be renewed. It is part of Treasury’s efforts against money laundering linked to fraud involving government benefits in Minnesota.
Who does the U.S. measure apply to?
The order does not affect just any resident of the counties named. It applies only to international transfers sent through a bank or money transfer company based in Hennepin or Ramsey, when the sender declares an address in that area.
Publicly traded companies and entities already regulated against money laundering are excluded. The requirement falls on banks and money transmitters, which must also identify whether the source of the funds comes from state or federal programs.
Data banks and transmitters must report
For each covered transaction, the financial institution must inform FinCEN:
- Name and address of the beneficiary
- Date of birth, phone number, and contact email
- Account number of the sender and the recipient
- Whether the funds come from a government benefits program
How does this measure affect Minnesota residents?
Those who send money abroad from Hennepin or Ramsey for u$s 3,000 or more will have their personal and banking data reported to federal authorities. The measure does not block transfers, but requires more documentation for each transaction.
Noncompliance by banks or money transmitters can result in civil or criminal penalties. The institutions must keep the records for five years and be ready to provide them upon request from FinCEN or another agency.