The U.S. Department of the Treasury and the Financial Crimes Enforcement Network (FinCEN) have recently announced a series of measures underscoring a renewed and coordinated federal focus on combating fraud, waste, and abuse in federal programs. These priorities align with broader AML/CFT policy objectives and reinforce expectations that financial institutions maintain robust monitoring systems and promptly report suspicious activity.

Treasury’s latest announcement emphasizes a “whole-of-government” strategy to protect federal funds, including enhanced interagency coordination, expanded use of data analytics and financial intelligence, and continued modernization of payment systems. These efforts are designed to address persistent vulnerabilities in programs such as healthcare and other federal benefits, where fraud remains a significant and growing risk.

In parallel, FinCEN issued an advisory highlighting significant risks related to healthcare fraud schemes targeting Medicare, Medicaid, and other benefit programs. FinCEN reported a 330% increase in Bank Secrecy Act (BSA) reporting related to healthcare fraud between 2020 and 2025 and described common tactics, including the use of shell companies, fraudulent billing practices, and rapid laundering of proceeds through domestic and international financial systems. FinCEN is urging financial institutions to enhance monitoring and ensure that suspicious activity reports clearly identify potential healthcare fraud.

Separately, FinCEN has proposed a new whistleblower program that would provide financial incentives to individuals who report violations of the BSA and related AML requirements. The proposal contemplates awards of 10 to 30 percent of collected monetary penalties for individuals whose tips lead to successful enforcement actions by Treasury or the Department of Justice. Under the governing statute, awards are available only where the enforcement action results in monetary penalties exceeding $1 million. The proposed rule also includes confidentiality protections and anti-retaliation measures and is expected to increase the volume of high-quality tips provided to regulators, thereby expanding enforcement risk for regulated entities.

Taken together, these developments signal a material escalation in U.S. enforcement priorities around fraud and financial crime. Financial institutions, healthcare-related entities, and other companies that interact with federal funds should review their compliance frameworks, enhance transaction monitoring and reporting practices, and ensure that internal reporting channels are robust in anticipation of increased regulatory scrutiny and whistleblower activity.