Scott Bessent Minnesota Fraud Crackdown Targets Somalia Remittances

Financial surveillance is ramping up as the federal government tightens its grip on cross-border money flows. Treasury Secretary Scott Bessent signaled a massive crackdown on fraud in Minnesota on Friday, specifically zeroing in on money service businesses used by the Somali diaspora. The move comes at a time of peak tension between the Trump administration and local leaders in the Democratic-led state.

Scott Bessent Minnesota Fraud Crackdown: Scrutinizing Somalia Transfers

During his visit on January 9, 2026, Bessent revealed that the Treasury has launched investigations into four unnamed businesses involved in wiring money to Somalia. Enhanced reporting requirements are now in effect for international transfers originating from Hennepin and Ramsey counties. Bessent told reporters that his agency is committed to recovering stolen funds and preventing future scandals.

The Treasury's focus stems largely from the Feeding Our Future case, where a nonprofit allegedly stole $300 million in pandemic aid meant for school meals. While former Governor Tim Walz previously condemned the fraud, the federal government's new aggressive stance is being interpreted by some as a broader political strike against immigrant communities.

Clash of Sovereignty and Surveillance

The crackdown isn't without its detractors. Nicholas Anthony from the Cato Institute argued that Bessent's building a legacy of "financial surveillance and control." Meanwhile, Somali community leaders worry that the increased scrutiny under the Bank Secrecy Act will stifle legitimate remittances that families depend on. This financial pressure adds to the volatility in Minneapolis, where local leaders like Mayor Jacob Frey have pledged to protect residents from federal overreach.