WASHINGTON (AP) — The Treasury Department is intensifying investigations into financial transactions between residents of Minnesota and Somalia, coinciding with a federal crackdown on immigration enforcement in the state, Treasury Secretary Scott Bessent announced during a visit on Friday.
In a bid to combat fraud, Bessent outlined actions taken by the agency to scrutinize transactions made for remittances used to support families abroad. Specific businesses under investigation have not been disclosed.
This visit aligns with escalating protests in Minneapolis, following an Immigration and Customs Enforcement (ICE) officer's fatal shooting of a woman, leading to rising tensions between local and federal authorities.
President Donald Trump has particularly targeted the Somali community in Minnesota with his administration's strict immigration policies and has directed Secretary Bessent to investigate financial irregularities. The Treasury initially announced last month its intentions to focus on money service businesses involved in remittances to Somalia.
Recent fraud cases have spurred these investigations, notably involving a nonprofit named Feeding Our Future, alleged to have misappropriated $300 million in pandemic aid intended for school meal programs.
Gov. Tim Walz, who recently ended his bid for a third term, stressed that his administration would not tolerate fraud, asserting ongoing collaboration with federal partners to thwart such activities. The governor condemned criminals exploiting systems designed to support vulnerable communities.
The founder of Feeding Our Future, Aimee Bock, has faced multiple charges, including conspiracy and wire fraud, while maintaining her innocence.
During his visit, Bessent met with several financial institutions, urging them to bolster their measures against fraud. Key Treasury actions will include investigations by the Financial Crimes Enforcement Network targeting local money service businesses, enhanced transaction reporting for international transfers from specific counties, and alerts to help financial institutions recognize fraudulent activities tied to child nutrition programs.
“Treasury will utilize all available tools to end this widespread fraud and hold accountable those responsible,” Bessent stated.
However, Bessent's announcement has faced backlash from critics, including Nicholas Anthony from the Cato Institute, who argued that it heralds a troubling era of increased financial surveillance.
Some Somali community leaders reported anecdotal evidence of members being detained by federal agents and maintain a commitment to protecting their community alongside officials like Walz and Minneapolis Mayor Jacob Frey.
In addressing the community during a speech on his administration's economic agenda, Bessent highlighted the Treasury’s dedication to recovering stolen funds and preventing similar fraud from recurring.
