U.S. Treasury Intensifies Scrutiny on Somali Money Transfers Amid Immigration Crackdown

Sun Jan 11 2026 02:38:33 GMT+0200 (Eastern European Standard Time)

The Treasury Department increases investigations into financial activities between Minnesota residents and Somali businesses in light of rising immigration enforcement actions, addressing concerns over fraud linked to recent federal initiatives.

The U.S. Treasury Department has begun a closer examination of financial transactions between Minnesotan residents and Somali businesses during a recent visit by Secretary Scott Bessent. This comes amid heightened immigration enforcement in the state and protests following a deadly ICE shooting. Bessent announced investigations into four businesses sending money overseas to combat fraud and reiterated the Treasury's commitment to ending financial malfeasance tied to recent scandals involving child nutrition aid. Local leaders stress the need to protect the community amidst concerns of increased federal oversight.

WASHINGTON (AP) — The Treasury Department is taking a closer look at financial transactions between Minnesotan residents and businesses and Somalia as part of an ongoing immigration enforcement initiative, Treasury Secretary Scott Bessent disclosed during his visit to Minnesota.

Bessent noted that his agency has begun investigations into four financing businesses utilized by residents to wire money to their families abroad, aiming to enhance scrutiny over these transactions. The names of the businesses under investigation were not disclosed.

This scrutiny coincides with protests erupting in Minneapolis following an Immigration and Customs Enforcement (ICE) officer's fatal shooting of a woman in the city, escalating tensions between federal and local authorities.

In the context of Trump's administration targeting the Minnesota Somali diaspora with intensified immigration enforcement actions, Bessent reported that the Treasury is committed to investigating fraud in connection with remittances to Somalia, particularly highlighting cases of financial misconduct.

Motivated by recent fraud incidents, including significant losses associated with the nonprofit Feeding Our Future, accused of misappropriating pandemic relief funds, the department indicated that losses from this case alone amount to $300 million.

Governor Tim Walz, who recently withdrew from seeking a third term, underscored the importance of tackling fraud in the state and affirmed his administration's intentions to collaborate with federal partners to combat fraudulent activities effectively.

As political scrutiny of his administration heightens, Walz expressed his frustration over criminals exploiting systems designed to assist vulnerable communities, specifically emphasizing efforts needed to prevent such exploitation.

In response to the heightened crackdown, local Somali leaders and advocates have reported increased federal enforcement actions, expressing concerns over community safety and the need to protect against potential abuses.

During a speech addressing Trump's economic agenda, Bessent reiterated the Treasury's resolve to not only recover misappropriated funds but also to prosecute those responsible for violations. He stated, “I am here this week to signal the U.S. Treasury’s unwavering commitment to recovering stolen funds, prosecuting fraudulent criminals, preventing scandals like this from ever happening again.”