Treasury Secretary Scott Bessent said Friday it is possible Minnesota taxpayer dollars were diverted to the Somali-based terrorist group al-Shabab and blamed Democratic Gov. Tim Walz for what he described as a lack of oversight as multiple fraud investigations unfold in the state. Bessent said the Treasury Department’s Financial Crimes Enforcement Network is investigating whether money service businesses were used to funnel funds overseas,
He did not name the financial institutions believed to be involved. “We are thoroughly investigating the fraud, including funds sent to Somalia through money service businesses, which provide financial services outside of a formal bank,” Bessent said during a virtual press conference.
“These funds could have potentially been diverted to the terrorist organization al-Shabab,” he said. “We have traced where the money went and are examining that.”
“These businesses had an obligation to comply with anti-money laundering laws, and they will be held responsible for any crimes they committed,” Bessent said.
