Minnesota tensions lead Treasury Secretary Bessent to push fraud crackdown

Treasury Secretary Scott Bessent said the department is increasing scrutiny of transfers between Minnesota and Somalia and has opened investigations into four money service businesses; the Treasury also announced enhanced reporting and alerts for transfers from Hennepin and Ramsey counties.

Treasury Secretary Scott Bessent visited Minnesota and said the Treasury Department is taking a closer look at financial transfers between Minnesota residents or businesses and Somalia. He said the department has launched actions to combat fraud and has opened investigations into four money services businesses used for remittances. The visit coincided with local protests after a recent law enforcement shooting in Minneapolis, and officials noted differences between federal and local leaders. The Treasury announced enhanced reporting requirements and alerts tied to international transfers from Hennepin and Ramsey counties. Actions under way: - The Treasury has opened investigations into four businesses that handle remittances, according to Bessent; the businesses were not named. - The Financial Crimes Enforcement Network is investigating Minnesota-based money services businesses, as reported by the department. - Enhanced transaction reporting requirements were announced for international transfers originating from Hennepin and Ramsey counties. - The department issued alerts to financial institutions about identifying fraud linked to child nutrition programs and said officials met with banks to encourage greater scrutiny. Summary: The department's steps increase federal scrutiny of remittances and related financial activity and have prompted formal investigations and new reporting measures. Undetermined at this time.