The Treasury Department says it will increase oversight of money transfer businesses tied to Somalia as the Trump administration intensifies investigations into alleged fraud connected to Minnesota-based cases.
By yourNEWS Media Newsroom
The U.S. Treasury Department is stepping up scrutiny of money transfer services that send funds from the United States to Somalia, citing concerns tied to fraud investigations centered in Minnesota, Treasury Secretary Scott Bessent said Friday.
The move comes as the Trump administration expands its focus on alleged financial misconduct involving Minnesota’s Somali community, following a series of high-profile fraud cases linked to pandemic-era government programs.
Bessent said the Treasury Department will soon require additional verification from money wire services commonly used to send funds to Somalia. The new requirements are intended to increase transparency and help federal authorities track financial flows connected to suspected fraud.
The Financial Crimes Enforcement Network, a Treasury bureau tasked with combating money laundering and terrorist financing, will assist in the effort. Bessent said the Internal Revenue Service will also take part in examining businesses suspected of fraudulent activity.
“Additionally, Treasury personnel are on the ground working hard to uncover the facts,” Bessent said in a social media post.
The administration’s actions follow prosecutions tied to multiple fraud schemes, including the Feeding Our Future case, in which a Minnesota nonprofit is accused of stealing pandemic relief funds intended for school meal programs. Prosecutors have estimated losses in that case at approximately $300 million.
Bessent has referenced reporting that alleged misappropriated taxpayer funds from government programs were sent overseas and may have reached al-Shabab, an al-Qaida-linked militant group operating in Somalia. Those claims, which cited unnamed sources, have not been substantiated, and federal prosecutors have not charged any defendants with providing material support to terrorist organizations.
President Donald Trump has repeatedly criticized Minnesota’s Somali community, describing the state as a center for fraudulent financial activity. While immigration enforcement actions have targeted members of the Somali diaspora, evidence supporting broader claims of systemic money laundering has not been publicly presented.
Treasury officials said the expanded oversight is part of a broader effort to identify fraud, prevent misuse of federal funds, and strengthen enforcement tools across agencies as investigations continue.
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