WASHINGTON (AP) — The U.S. Treasury Department is intensifying investigations into money transfer services utilized by the Somali community in Minnesota, according to Treasury Secretary Scott Bessent. This announcement comes amid concerns over fraud within the community, which has faced significant scrutiny under the Trump administration.
President Donald Trump has consistently criticized the Somali diaspora in Minnesota, claiming that the state serves as a hub for fraudulent activities, despite limited evidence to substantiate such allegations. These criticisms have increased amidst various fraud cases, including that of the nonprofit organization Feeding Our Future, which is accused of misappropriating over $300 million in pandemic aid designated for school meals.
Bessent stated that the Treasury Department plans to enforce new regulations requiring money transfer services that facilitate remittances to Somalia to provide enhanced verification procedures. This move is part of a broader initiative to combat financial crimes, including money laundering and terrorist financing, as suggested by the Financial Crimes Enforcement Network.
Furthermore, there are reports linking fraudulent funds to extremist groups like al-Shabab; however, accusations remain unproven, and federal prosecutors have yet to charge any individuals with terrorism-related offenses stemming from these allegations. Bessent emphasized that Treasury personnel are actively working to uncover the facts and that they will collaborate with the Internal Revenue Service to investigate companies linked to the fraud allegations.
