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.
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.
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.
