Washington, DC — The U.S. Treasury Department is expanding investigations into financial activity linked to Minnesota’s Somali community, a move that comes as the Trump administration escalates rhetoric and enforcement actions focused on alleged fraud within the state’s Somali diaspora.
Treasury Secretary Scott Bessent said Friday that the department will increase scrutiny of money wire services commonly used to send funds to family members in Somalia. The forthcoming order will require additional verification and reporting to Treasury, with enforcement assistance from the Financial Crimes Enforcement Network and the Internal Revenue Service.
President Donald Trump has repeatedly claimed Minnesota is a “hub of fraudulent money laundering activity,” particularly involving Somali Americans, though federal officials have provided limited evidence supporting such broad assertions. Critics argue the administration’s language risks stigmatizing an entire community based on the actions of a small number of individuals.
The investigations stem in part from high-profile fraud cases, including the Feeding Our Future scandal, in which a Minnesota-based nonprofit is accused of stealing an estimated $300 million in pandemic-era funds intended for child nutrition programs. Prosecutors have not alleged that the broader Somali community was involved.
Bessent has also referenced a report from the conservative outlet City Journal suggesting stolen public funds flowed to al-Shabab, an al-Qaida-linked militant group in Somalia. The report relies on unnamed sources, and federal prosecutors have not charged any defendants with terrorism-related offenses connected to the case.
On social media, Bessent said Treasury personnel are already working on the ground to “uncover the facts,” signaling a more aggressive posture moving forward. Civil rights advocates and community leaders have warned that intensified enforcement, combined with inflammatory political rhetoric, could deepen mistrust and unfairly target law-abiding Somali Americans.
Sources:
Discover more from News Facts Network
Subscribe to get the latest posts sent to your email.
