WASHINGTON (AP) — The U.S. Treasury Department is intensifying its focus on money wiring businesses used to transfer funds to families abroad, especially targeting the Somali community in Minnesota amid ongoing investigations into alleged fraud. Treasury Secretary Scott Bessent stated on Friday that the department would soon roll out regulations requiring these wire services to submit additional verification to combat financial crimes.
The administration has previously scrutinized the Somali diaspora, with President Donald Trump labeling Minnesota as a hub for fraudulent money laundering activities, although supporting evidence remains limited. Bessent pointed to recent fraud cases, including a major scandal involving a nonprofit organization called Feeding Our Future, which is accused of misappropriating $300 million in pandemic aid intended for school meals.
A report from City Journal suggested that stolen taxpayer dollars could have been funneled to al-Shabab, the militant group linked to al-Qaida controlling parts of Somalia. However, these allegations rely on unnamed sources and have not been substantiated by federal prosecutors.
To support these investigations, the Financial Crimes Enforcement Network (FinCEN) and the Internal Revenue Service (IRS) will assist in examining firms suspected of fraud. Treasury personnel are on the ground working hard to uncover the facts,” Bessent added.
