New U.S. Treasury rules target overseas transfers above $3,000, aiming to curb welfare fraud without blocking legitimate remittances globally.
The U.S. Treasury Department says overseas money transfers exceeding $3,000 will now face increased scrutiny, including proof of where the funds came from. Treasury Secretary Scott Bessent said the policy will not affect people who can show their money is legitimate.
“Anyone who can prove where the money has come from, is fine,” Bessent told Reuters.
The Financial Crimes Enforcement Network (FinCEN) is investigating money services businesses over alleged misuse of federal welfare funds in Minnesota. The Internal Revenue Service will also audit certain banks for suspected money laundering. FinCEN has issued a geographic targeting order covering banks and money transmitters in Minnesota’s Hennepin and Ramsey counties, requiring extra reporting on overseas transfers above $3,000.
Bessent stressed that people legally in the U.S. usually send money through regulated banks, adding, “You cannot send welfare money… or stolen money.” Remittances remain vital to economies like Somalia and El Salvador.
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