Unknown Sponsor Bank

In January 2026, the US Treasury intensified its focus on Bank Secrecy Act (BSA) and anti-money laundering (AML) compliance at banks, with particular attention to fraud detection involving nonprofits and government funds. The scrutiny was informed in part by cases like the $250 million 'Feeding Our Future' fraud scheme. While not a direct enforcement action against a specific bank, this heightened supervisory posture raises compliance expectations for banks participating in BaaS arrangements, especially those whose fintech partners handle high-volume transactions that may involve government program funds. Banks are expected to strengthen their transaction monitoring and suspicious activity reporting capabilities.

Verified from source: On January 9, 2026, U.S. Treasury Secretary Scott Bessent announced new federal actions focused on fraud in federal aid programs, intensifying BSA/AML oversight of financial institutions, particularly those serving nonprofits and customers handling government-related funds, with FinCEN issuing targeted alerts and investigative demands.