WASHINGTON (RTW News) — The Treasury Department has begun targeting money transfer businesses as part of an investigation into alleged fraud in Minnesota’s Somali community, announced Treasury Secretary Scott Bessent. This move comes amid increasing scrutiny by the Trump administration towards this diaspora, which has faced numerous immigration enforcement actions and disparaging remarks regarding potential financial improprieties.
President Trump has labeled Minnesota a center for fraudulent activities, specifically condemning the Somali community, although evidence substantiating such claims remains scarce. Recent cases, including a significant fraud case involving a nonprofit called Feeding Our Future, which allegedly misappropriated $300 million meant for pandemic school meals, have intensified investigations.
Secretary Bessent referenced a contentious report by City Journal linking taxpayer funds from fraudulent activities to the terror group al-Shabab. However, these claims lack confirmed attribution and federal prosecutors have not tied any allegations directly to terrorism financing.
New policies to mandate additional verification for money transfer services utilized for remittances to Somalia are expected to be implemented shortly by the Treasury Department. The initiative will also see the Financial Crimes Enforcement Network and the IRS collaborating in investigating firms suspected of fraudulent actions. Bessent emphasized that dedicated personnel are currently deployed to ensure a comprehensive exploration of the situation.
