The Ministry of Finance is taking Take a closer look at financial transactions Between Minnesota residents and businesses and the federal government of Somalia Intensify crackdown on immigration Finance Minister Scott Bessant told reporters during a visit to the state on Friday.
Bessant said his agency has taken a series of actions to crack down on fraud in the state and launched investigations into four businesses used by people to send money to family members abroad to increase scrutiny of transactions. He did not name the companies.
His visit to the state comes amid protests in Minneapolis over Immigration and Customs Enforcement officials. shooting a woman Wednesday in a residential neighborhood south of downtown, leading to clashes between federal and local leaders.
President Donald Trump has Targeting the Somali diaspora Immigration enforcement actions taken in Democratic-led states and gains a series of disparaging comments Regarding the community, direct Bessent to expose more fraud. The Treasury Department first announced last month that it would begin targeting money services businesses, focusing on remittances to Somalia.
The department’s action was prompted in part by a series of fraud cases, including one where a nonprofit called Feeding Our Future was accused of stealing coronavirus pandemic aid meant for school meals. Prosecutors estimated the damage from the case at $300 million.
Governor Tim Walz preceded him ends his campaign for a third term This week, he said fraud will not be tolerated in Minnesota and that his administration “will continue to work with federal partners to ensure it is stopped and perpetrators caught.” Waltz, who severely criticized Republicans say his administration should catch Earlier he expressed “outrage” at the Feed Our Future fraud because “criminals took advantage of a system designed to feed children”.
Founder of Feed Our Future, Amy BurkeHe was charged with conspiracy, wire fraud and bribery and convicted in March, while maintaining his innocence.
Bessant declined to comment on specific investigations but said he had met with several financial institutions on Friday to ask them to do more to prevent fraud. The department has not disclosed which agencies Bessent has spoken with.
Key Treasury Department actions include Financial Crimes Enforcement Network investigations of money services businesses in Minnesota, strengthening transaction reporting requirements for international transfers in Hennepin and Ramsey counties, and alerting financial institutions to identify fraud related to child nutrition programs.
“Treasury will deploy all tools to end this egregious, unchecked fraud and hold those responsible accountable,” Bessant told reporters on Friday.
Bessant’s statement was met with some criticism. Nicholas Anthony, a policy analyst at the liberal Cato Institute, said Bessant is “building a legacy of financial surveillance and control.”
“His announcement to block Americans from sending money abroad and to increase surveillance under the Bank Secrecy Act is reprehensible,” Anthony said.
Some Somali leaders said last month they had received rumors that community members were being detained by federal agents, but gave no details. Those leaders and allies, including Walz and Minneapolis Mayor Jacob Frey, have vowed to protect the community.
In a speech Thursday to the Economic Club of Minnesota about the Republican Trump administration’s economic agenda, Bessant mentioned the alleged fraud but did not mention the Somali community targeted by his department.
“I am here this week to demonstrate the U.S. Department of the Treasury’s unwavering commitment to recovering stolen funds, prosecuting perpetrators of fraud, preventing scandals like this from happening again, and investigating similar schemes on a state-by-state basis,” Bessant said.