Treasury Issues Geographic Targeting Order to Banks in Hennepin and Ramsey Counties and FinCEN Alert to Combat Fraud in Minnesota | Winthrop & Weinstine, P.A.

On January 9, 2026, the U.S. Department of Treasury issued a Geographic Targeting Order and FinCEN Alert to enhance financial activity reporting and combat fraud in Minnesota.

Geographic Targeting Order

The Geographic Targeting Order (Order) requires banks (as defined in 31 CFR 1010.100(d)) and money transmitters with locations in Hennepin and Ramsey Counties to file to report additional information with FinCEN when they originate transactions in the amount of $3,000 or more to beneficiaries/recipients that are located outside of the United States. In addition to reporting all information required to be retained under 31 CFR 1020.410(a)(1) and (2), the bank is required to report the following information (regardless of whether the information is provided with the payment order):

1. The name and employer identification number of the bank;
2. The account number of the originator;
3. The name of the beneficiary;
4. The address of the beneficiary;
5. The date of birth of the beneficiary;
6. A phone number of the beneficiary;
7. An email address of the beneficiary;
8. The account number of the beneficiary;
9. Whether the source of funds for the transfer includes payments that are from any federal, state, or local government contract or benefit program; and
10. If the answer to question (9) is yes, whether those payments are from government agencies to entities in which the originator has any ownership interest.

The Order may require the bank to modify procedures and collect additional information from the customer for any affected transactions. The reporting will also require the bank to review the account to determine the source of funds for the transaction or inquire for any customers that deposit cash to fund such transactions. The Order indicated that the bank can rely upon information provided by the customer, absent knowledge of facts that would reasonably call into question the reliability of the information provided. The Order covers affected transactions between February 12, 2026, and August 10, 2026, and requires bank reporting by the end of the next month after the transaction date. The Order directs bank to retain records of all reports filed and any related compliance records until August 10, 2031, and make such records available upon request to FinCEN or any other appropriate law enforcement or regulatory agency, in accordance with applicable law. This means that the regulatory or law enforcement agency must comply with existing laws to obtain access to such banking records.

The Right to Financial Privacy Act (RFPA), 12 U.S.C. 3401 et seq., establishes specific procedures that federal government authorities must follow to obtain information from a financial institution about a customer’s financial records. For purposes of RFPA, a customer is defined as any individual (or representative of that individual) or a partnership of five or fewer individuals who utilized or is utilizing any service of a financial institution, or for whom a financial institution is acting or has acted as a fiduciary, in relation to an account maintained in the customer’s name. Therefore, restrictions in the RFPA do not apply to the financial records of corporations or partnerships with six or more partners. The RFPA requires the federal government authorities to obtain administrative summons or subpoenas, notify the customers and provide the customer the opportunity to object.

Banks should follow their standard operating procedures for releasing information to law enforcement or government agencies. For example, banks are not required to voluntarily share requested information with members of state or federal legislatures that seek information without providing a legislative or congressional subpoena or a warrant. Information shared with such persons or agencies who do not act in a supervisory capacity over the bank will not be treated as confidential supervisory information and will be subject to disclosure in any information requests. Banks should also consider their privacy policies before sharing any customer information.

FinCEN Alert

The FinCEN Alert has broader implications for all Minnesota-based banks and is not limited to Hennepin and Ramsey Counties as the above-mentioned targeting order. The alert was issued to “to urge financial institutions to identify and report fraud associated with Federal child nutrition programs, particularly past and ongoing suspicious activity potentially related to fraudsters in Minnesota.” FinCEN and federal law enforcement agencies have identified the red flag indicators to help banks detect, prevent, and report potential suspicious activity related to fraudsters targeting the Federal child nutrition programs in Minnesota. The alert suggests that banks should consider whether in connection with historical activity and prevailing business practices, the customer exhibits any of the following red flags for suspicious activity report (SAR) filings:

• A customer is a company or NPO serving as a sponsor for a government benefit program that suddenly receives and disburses a significant number of reimbursements in a short timeframe inconsistent with the customer profile of other similar entities.
• A customer is a recently established company or NPO enrolled in a government benefit program that is suddenly receiving a significant amount of Federal payments soon after starting its operations.
• A customer is a recently established company or NPO enrolled in a government benefit program receiving payments to their accounts that are inconsistent with their customer profile.
• A customer is a company or NPO enrolled in a government benefit program but is unable to verify its status to the financial institution or its customer profile is not commensurate with other similar entities.
• A customer is a company or NPO enrolled in a government benefit program that is receiving a significant amount of reimbursements despite limited operations.
• A customer is a recently established company or NPO enrolled in a government benefit program with a limited online presence.
• A customer is a company or NPO enrolled in a government benefit program that has minimal to no operating costs other than payments for “consulting fees” and nondescriptive, repetitive invoices (i.e. food supplies).
• A customer that is a company or NPO enrolled in a government benefit program makes a significant amount of cash withdrawals.
• A customer with previous fraud convictions is an employee of a company or NPO enrolled in a government benefit program.
• A customer is an employee of a company or NPO enrolled in a government benefit program that is frequently purchasing or redeeming cashier’s checks for no clear purpose.
• A customer that is a company or NPO, enrolled in a government benefit program, or the customer’s employee, engages in behavior suggesting efforts to evade the Currency Transaction Report (CTR) reporting requirement (e.g., alters or cancels a transaction when advised a CTR would be filed or engages in structuring with multiple cash transactions for under $10,000), as well as avoiding recordkeeping requirements.
• A customer is a company or NPO enrolled in a government benefit program meant for U.S. citizens and lawful permanent residents that is sending a significant amount of wire transfers to individuals and companies located in foreign jurisdictions.
• A customer is a company or NPO enrolled in a government benefit program that is sending payments abroad for residential and commercial real estate, vehicles, aircraft, airline tickets, and designer clothing.

The alert further encourages banks to file such SARs as soon as possible regardless of threshold and to reference the Alert in SAR field 2 (Filing Institution Note to FinCEN) and the narrative by including the key term “FIN-2026-MNFRAUD” and select SAR field 34(z) (Fraud – Other) and include the term “Federal Child Nutrition Programs” in the text box. The additional red flags may require changes to compliance policies and related trainings on red flags.