Treasury rachets up investigations targeting Minnesota’s Somali community for fraud
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Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.WASHINGTON (AP) — The Treasury Department is targeting businesses that people use to wire money to family members abroad as the Trump administration rachets up investigations into fraud within Minnesota’s Somali community, Treasury Secretary Scott Bessent said on Friday.Subscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.President Donald Trump has targeted the Somalian diaspora in Minnesota with immigration enforcement actions and has made a series of disparaging comments about the community. He has said the state is “a hub of fraudulent money laundering activity,” though there has been little evidence to support that claim.The new action was prompted in part by a series of fraud cases, including a nonprofit called Feeding Our Future accused of stealing pandemic aid meant for school meals. Prosecutors have put the losses from that case at $300 million.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Bessent has pointed to a report by conservative news outlet City Journal, which claimed that taxpayer dollars from defrauded government programs flowed to al-Shabab, an al-Qaida-linked militant group that controls parts of Somalia. The report cites unnamed sources and the allegations have not been substantiated. Federal prosecutors have not charged any defendants with supporting terrorists.On Friday, Bessent said on social media that the Treasury Department will soon issue an order requiring money wire services that people use to send money to Somalia to submit additional verification to Treasury.The Financial Crimes Enforcement Network, a Treasury arm that combats financial crimes like money laundering and terrorism financing, will be deployed to assist in the effort, Bessent said. He added that the Internal Revenue Service would also be involved in looking into firms accused of engaging in fraud.“Additionally, Treasury personnel are on the ground working hard to uncover the facts,” he said.Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information.365 Bloor Street East, Toronto, Ontario, M4W 3L4© 2025 Financial Post, a division of Postmedia Network Inc. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.You can manage saved articles in your account.and save up to 100 articles!You can manage your saved articles in your account and clicking the X located at the bottom right of the article.