WASHINGTON (AP) — The Treasury Department is taking a closer look at financial transactions between Minnesotan residents and businesses and Somalia as the federal government ramps up its immigration crackdown in the state, Treasury Secretary Scott Bessent told reporters on Friday during a visit to the state.
Bessent said his agency has launched a series of actions to combat fraud in the state and has launched investigations into four businesses that people use to wire money to family members abroad to do more to scrutinize transactions. He did not name the businesses.
His visit to the state coincides with protests in Minneapolis after an Immigration and Customs Enforcement officer fatally shot a woman in a residential neighborhood south of downtown on Wednesday, leading to a clash between federal and local leaders.
President Donald Trump has targeted the Somali diaspora in the Democratic-led state with immigration enforcement actions and has made a series of disparaging comments about the community, directing Bessent to uncover more fraud. The Treasury first announced last month that it would begin targeting money service businesses, focusing on remittances to Somalia.
The department’s actions have been prompted in part by a series of fraud cases, including a nonprofit called Feeding Our Future accused of stealing coronavirus pandemic aid meant for school meals. Prosecutors have put the losses from that case at $300 million.
Gov. Tim Walz, before he ended his bid to serve a third term this week, said that fraud will not be tolerated in Minnesota and that his administration “will continue to work with federal partners to ensure fraud is stopped and fraudsters are caught.” Walz, who came under heavy criticism from Republicans who said his administration should have caught the Feeding Our Future fraud earlier, said he was “furious” with “criminals that preyed on the system that was meant to feed children.”
The founder of Feeding our Future, Aimee Bock, was charged with multiple counts involving conspiracy, wire fraud and bribery and was convicted in March while maintaining her innocence.
Bessent 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 institutions Bessent spoke with.
Key Treasury actions include Financial Crimes Enforcement Network investigations into Minnesota-based money services businesses, enhanced transaction reporting requirements for international transfers from Hennepin and Ramsey counties, and alerts to financial institutions on identifying fraud tied to child nutrition programs.
“Treasury will deploy all tools to bring an end to this egregious unchecked fraud and hold perpetrators to account,” Bessent told reporters on Friday.
Bessent’s announcement was met with some criticism. Nicholas Anthony, a policy analyst at the libertarian Cato Institute, said Bessent is “building a legacy of financial surveillance and control.”
“The announcement that he is stopping Americans from sending their money abroad and increasing surveillance under the Bank Secrecy Act should be condemned,” Anthony said.
Some Somali leaders said last month they had received anecdotal reports about community members being detained by federal agents but had no details. Those leaders and allies including Walz and Minneapolis Mayor Jacob Frey have vowed to protect the community.
During a speech on Thursday about the Republican Trump administration’s economic agenda at the Economic Club of Minnesota, Bessent referred to the alleged fraud, without mentioning the Somali community that his department is targeting.
“I am here this week to signal the U.S. Treasury’s unwavering commitment to recovering stolen funds, prosecuting fraudulent criminals, preventing scandals like this from ever happening again, and investigating similar schemes state by state,” Bessent said.