US Treasury Flags $8 Billion in Suspicious Cross-Border Payments in Fraud Crackdown

November 2, 2026 | By Semahegn Nigatu

The US Treasury Department has flagged more than eight billion US dollars in potentially suspicious cross-border payments routed through American money services businesses between 2021 and 2025, as it expands efforts to combat financial fraud, money laundering and the diversion of public funds.

The Treasury's Financial Crimes Enforcement Network (FinCEN) issued an alert asking financial institutions to scrutinise certain international transactions involving US-based money services businesses and foreign agents.

According to the agency, US financial institutions reported more than eight billion US dollars in potentially suspicious wire transfers during the five-year period. FinCEN warned that criminals could exploit cross-border business relationships to move funds through the US financial system while concealing the ultimate beneficiaries and purposes of transactions.

The agency said such arrangements could facilitate illicit activities, including financing for terrorist organisations.

In a separate notice, FinCEN warned financial institutions about the exploitation of charities and non-profit organisations for terrorist financing, fraud and embezzlement. The notice identified three types of schemes: sham charities established under false pretences to divert donations towards illicit activities; fraudulent fundraising operations that use contributions for personal enrichment; and embezzlement by insiders at legitimate charitable organisations.

The announcements formed part of a wider Treasury initiative to combat financial fraud under the White House Task Force to Eliminate Fraud, which is also targeting the misuse of federal benefits and taxpayer-funded programmes.

Treasury Secretary Scott Bessent said the department had stopped nearly 190 million US dollars in funds linked to overseas fraud and returned more than 100 million US dollars to victims in the United States.

The announcements followed a series of investigations into fraud in Minnesota, including the Feeding Our Future case, which involved the alleged theft of federal funds intended for child nutrition programmes during the Covid-19 pandemic.

This week, Salim Said, a co-conspirator in the scheme, was sentenced to 30 years in federal prison. Prosecutors established at trial that he participated in a scheme involving 49 million US dollars in fraudulent claims through the federally funded Child Nutrition Programme.

The investigation involved the Federal Bureau of Investigation, Internal Revenue Service Criminal Investigation, US Postal Inspection Service and Homeland Security Investigations.

Treasury said it would continue working with federal, state and local law enforcement agencies to identify suspicious transactions, investigate fraud networks and recover misappropriated public funds.

Source: FSX Business News