In brief
Secretary of the Treasury Scott Bessent announced an upcoming directive for money wire services sending funds to Somalia to enhance verification processes, as investigations ramp up into fraud cases allegedly involving the Somali diaspora in Minnesota. These actions come as President Trump's administration has repeatedly accused the community of being a hub for fraudulent activity, despite a lack of substantial evidence. The controversy follows significant fraud allegations involving a nonprofit accused of stealing $300 million in pandemic relief funds.
WASHINGTON (AP) — The Treasury Department is targeting businesses that people use to wire money to family members abroad as the Trump administration escalates investigations into alleged fraud within Minnesota’s Somali community, Treasury Secretary Scott Bessent stated on Friday.
President Donald Trump has also focused on the Somali diaspora in Minnesota with strict immigration enforcement actions while making a series of disparaging comments about the community, declaring that the state is “a hub of fraudulent money laundering activity.” However, limited evidence supports these claims.
This latest directive follows a series of fraud cases, including accusations against the nonprofit Feeding Our Future, which is alleged to have misappropriated $300 million worth of pandemic aid intended for school meals.
Bessent cited a report from conservative news outlet City Journal which claimed taxpayer dollars from defrauded government programs might have flowed to al-Shabab, an al-Qaida-linked militant group in Somalia. Yet, the claim remains unverified, and federal prosecutors have not filed charges against any individuals for supporting terrorism.
On his social media, Bessent indicated that the Treasury Department would soon issue an order requiring money wire services that facilitate transfers to Somalia to submit additional verification protocols.
The Financial Crimes Enforcement Network will assist in this effort, and the Internal Revenue Service will also investigate businesses allegedly engaged in fraudulent activities, Bessent said. Treasury personnel are reportedly present on the ground to gather the necessary information.
