Treasury Department to target money services businesses used by Somalis in Minnesota in fraud probe

The Treasury Department is targeting money services businesses used by Somalis in Minnesota in its fraud investigation, Treasury Secretary Scott Bessent said Friday.The announcement comes amid a series of fraud cases, including a nonprofit called Feeding Our Future accused of stealing COVID-19 pandemic aid meant for school meals, according to the Associated Press.
Bessent has pointed to a report by the City Journal stating taxpayer dollars from defrauded government programs flowed to al-Shabab, a militant group linked to al-Qaeda that controls parts of Somalia. The report cites unnamed sources, and the allegations are currently unsubstantiated.
“Egregious fraud in Minnesota has cost taxpayers hundreds of millions of dollars, including funds sent to Somalia through money services businesses (MSBs), which provide financial services outside a formal bank,” Bessent posted on X on Friday.
“Under @POTUS’ leadership, the @USTreasury will not stop until we fully investigate this deeply disturbing scam. To that end, Treasury will soon issue a Geographic Targeting Order (GTO) subjecting certain Money Services Businesses (MSBs) to enhanced reporting requirements with [the Financial Crimes Enforcement Network]. This important tool will be used to make sure information regarding any such illicit activity is quickly reported to @FinCENnews and made available to our law enforcement partners. This will empower investigators to develop additional leads through increased scrutiny on funds going to areas of concern, such as Somalia.”
“FinCEN will soon be issuing Notices of Investigations to MSBs of concern, and I can report that @IRSnews will be examining these businesses,” he added.

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