WASHINGTON (AP) — The Treasury Department is targeting businesses that people use to wire money to family members abroad as the Trump administration steps up investigations into fraud within Minnesota’s Somali community, Treasury Secretary Scott Bessent announced on Friday.
President Donald Trump has focused on the Somali diaspora in Minnesota with immigration enforcement actions, making comments that the state is a hub of fraudulent money laundering activity, although evidence to support those claims has been scant.
The intensified scrutiny follows a series of fraud cases, notably one involving a nonprofit named Feeding Our Future, which is accused of embezzling pandemic aid intended for school meals, with prosecutors estimating losses around $300 million.
Bessent referenced a report from City Journal that alleged taxpayer dollars from fraudulent government programs ended up funding al-Shabab, an al-Qaida-linked militant group active in Somalia. However, these claims have not been substantiated, and federal prosecutors have not charged anyone for supporting terrorism.
On social media, Bessent stated that the Treasury Department would soon require money wire services used to transfer funds to Somalia to provide additional verification processes to prevent further fraudulent activities.
The Financial Crimes Enforcement Network, part of the Treasury, will assist in this effort, alongside the Internal Revenue Service, which will investigate firms implicated in fraudulent activities. Additionally, Treasury personnel are on the ground working hard to uncover the facts, Bessent said.
President Donald Trump has focused on the Somali diaspora in Minnesota with immigration enforcement actions, making comments that the state is a hub of fraudulent money laundering activity, although evidence to support those claims has been scant.
The intensified scrutiny follows a series of fraud cases, notably one involving a nonprofit named Feeding Our Future, which is accused of embezzling pandemic aid intended for school meals, with prosecutors estimating losses around $300 million.
Bessent referenced a report from City Journal that alleged taxpayer dollars from fraudulent government programs ended up funding al-Shabab, an al-Qaida-linked militant group active in Somalia. However, these claims have not been substantiated, and federal prosecutors have not charged anyone for supporting terrorism.
On social media, Bessent stated that the Treasury Department would soon require money wire services used to transfer funds to Somalia to provide additional verification processes to prevent further fraudulent activities.
The Financial Crimes Enforcement Network, part of the Treasury, will assist in this effort, alongside the Internal Revenue Service, which will investigate firms implicated in fraudulent activities. Additionally, Treasury personnel are on the ground working hard to uncover the facts, Bessent said.
