On March 16, 2026, the White House issued a new executive order establishing the Task Force to Eliminate Fraud (Task Force), a government-wide initiative aimed at eliminating fraud across federal programs. While the Task Force is primarily focused on protecting public funds, its ripple effects will be felt well beyond government agencies, especially by Money Services Businesses (MSBs).

Led by the Vice President of the United States, JD Vance, with support from the Chairman of the Federal Trade Commission, Andrew Ferguson, and the Assistant to the President for Homeland Security, Stephen Miller, the Task Force is designed to strengthen fraud detection, enhance identity verification, and improve coordination across federal and state systems.

The focus of the Task Force is primarily on federally funded benefit programs, including:

• Medicaid / healthcare
• Supplemental Nutrition Assistance Program (SNAP food assistance)
• Housing assistance
• Childcare programs
• Cash assistance programs

For MSBs, this signals a clear shift: fraud prevention is becoming even more integrated with AML/CFT expectations.

A Broader Definition of Risk

Historically, MSBs have focused heavily on detecting money laundering and terrorist financing. However, this executive order reinforces a growing regulatory trend that fraud is no longer a separate issue.

Government benefit fraud, synthetic identity fraud, and organized fraud rings often:

• Use MSBs to move illicit funds
• Exploit gaps in identity verification
• Blend seamlessly into otherwise legitimate transaction activity

As a result, regulators are increasingly expecting MSBs to treat fraud as a core compliance risk rather than just an operational concern.

The administration has already identified several states as high-risk for fraud vulnerabilities:

• California
• New York
• Illinois
• Maine
• Colorado
• Minnesota (related GTO information)

Increased Expectations Around Identity Verification

A major pillar of the Task Force is strengthening eligibility and identity verification processes across federal programs.

This aligns closely with existing MSB requirements under the Bank Secrecy Act (BSA) but raises the bar.

Expect to see:

• Greater scrutiny of Customer Identification Programs (CIP)
• Pressure to detect synthetic or stolen identities
• More emphasis on beneficial ownership and true customer intent

For MSBs, this means your onboarding and transaction monitoring processes must evolve beyond basic ID checks toward risk-based identity validation.

Pre-Transaction Controls Are the Future

One of the most notable elements of the order is its focus on preventing fraud before it occurs, rather than simply detecting it afterward.

This is a critical shift and one that directly impacts MSBs.

Regulators may begin to expect:

• Real-time transaction screening enhancements
• Behavioral analytics to flag suspicious activity earlier
• Stronger controls on high-risk corridors and customer profiles
• In other words, reactive compliance will no longer be enough.
• Data sharing and law enforcement coordination

The Task Force emphasizes improved coordination between agencies, which often translates into more information sharing and faster enforcement actions.

For MSBs, that could mean:

• Increased law enforcement inquiries
• More detailed and time-sensitive requests
• Greater expectations for high-quality suspicious activity reports (SARs)

This is particularly relevant as fraud networks become more organized and cross multiple jurisdictions.

What MSBs Should Do Now

This executive order is a signal not just a policy change. MSBs should take proactive steps to align with this direction:

Reassess Your Risk Assessment

Ensure fraud risk (especially government benefit fraud and identity fraud) is explicitly addressed.

Strengthen Your AML/CFT Program

Integrate fraud detection into:

• Transaction monitoring
• Customer due diligence
• SAR decisioning

Enhance Employee Training

Staff should understand how fraud schemes intersect with money laundering and not treat them as separate issues.

Review Your Controls

Important questions to ask:

• Are we stopping suspicious transactions before they happen?
• Or only identifying them after the fact?

The Road Ahead

The establishment of this Task Force reflects a broader evolution in financial crime compliance. Fraud and AML are converging and MSBs are squarely in the middle.

With leadership from figures like JD Vance, the federal government is signaling a more aggressive, coordinated approach to financial crime.

For MSBs, expect higher expectations, faster enforcement, and a growing emphasis on proactive controls.

If you would like to ensure that your compliance policies and procedures are strong enough to withstand the Task Force’s scrutiny, contact our experts for a free 20-min consultation.

Tags: AML, AML/CFT Program, Anti Money Laundering, Bank Secrecy Act, BSA, CFT, Countering the Financing of Terrorism, CTR, Currency Transaction Report, Employee Training, FinCEN, Fraud, Geographic Targeting Order, GTO, Money Services Business, MSB, Risk Assessment