Treasury Department requiring reports for foreign transactions above $3,000 in Hennepin, Ramsey counties

MINNEAPOLIS (FOX 9) - The Financial Crimes Enforcement Network (FinCEN) announced that anyone sending $3,000 or more to a foreign country from Hennepin and Ramsey counties will be required to file a report beforehand.

This is in response to the widespread fraud detected across the state. 

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Fraud in Minnesota 

Big picture view:

U.S. Department of Justice prosecutors have uncovered billions of dollars stolen through defrauding state programs.  

In response, FinCEN has issued a geographic targeting order that will require banks to report transactions that are more than $3,000 that go to beneficiaries outside the United States. 

Officials say this will provide law enforcement with financial data to combat fraud in the state. 

FinCEN adds that their staff also provided "on-the-ground training" for Minnesota-based federal, state and local law enforcement on how to combat fraud schemes. 

What they're saying:

Secretary of the Treasury Scott Bessent shared the following statement: 

"President Trump has instructed the administration to bring accountability for the hardworking people of Minnesota. Under Democratic Governor Tim Walz, welfare fraud has spiraled out of control. Billions of dollars intended for feeding hungry children, housing disabled seniors, and providing services for children in need were diverted to benefit Somali fraud rings." 

The backstory:

Congressional hearings were held in the wake of rampant fraud being discovered through state-administered programs relying on federal funds.

In October, the state began auditing the 14 high-risk Medicaid programs and earlier this month, Gov. Walz tapped Tim O'Malley to head a state fraud prevention program.

First Assistant U.S. Attorney Joe Thompson has since announced a new round of charges related to fraud in autism, Medicaid and housing programs, while saying fraud so far uncovered could total as high as $9 billion or more.

READ MORE: 13 Medicaid services will have new enrollment frozen by MN Department of Human Services

President Donald Trump has become increasingly focused on Minnesota, targeting Somalis and criticizing Walz and other Minnesota Democrats in the process.