WASHINGTON (AP) — The U.S. Treasury Department is turning its focus toward money transfer businesses used by the Somali diaspora in Minnesota, with Secretary Scott Bessent announcing intensified investigations into fraud within the community.
Under the Trump administration, immigration enforcement actions have disproportionately affected this community, which the president has characterized as a hub of fraudulent money laundering activity, despite a lack of supporting evidence.
The decision to scrutinize these money transfer services is partly influenced by alarming fraud cases, including a non-profit, Feeding Our Future, accused of misappropriating $300 million in pandemic aid intended for educational meals.
Bessent referenced a report from City Journal alleging that defrauded taxpayer dollars may have flowed to al-Shabab, a militant group tied to al-Qaida in Somalia. However, these allegations remain unverified, and no charges have been filed linking any defendants to terrorism.
On Friday, Bessent disclosed that the Treasury Department will soon require money wire services sending funds to Somalia to provide additional verification to prevent fraudulent activities.
The Financial Crimes Enforcement Network (FinCEN) and the Internal Revenue Service (IRS) are set to assist in these efforts, with Treasury personnel actively engaged in gathering facts on the ground.
