Money Movers in the Spotlight: U. S. Treasury Tightens Grip on Fraud

The U. S. Treasury is stepping up its game to keep an eye on money services businesses. This move comes after a big fraud case in Minnesota, where COVID relief funds meant for school kids' meals went missing. Over 77 people, many from the Somali community, are facing charges for this scam. The Treasury is introducing new rules to track cash flows better. They're especially interested in funds heading to places like Somalia. This is part of their effort to catch any illegal money movements. The Treasury has already sent investigators to look into these businesses and expects more probes soon. The fraud has cost taxpayers a huge amount of money. Some of these funds even ended up in Somalia through money services instead of banks. The Treasury is also looking into claims that some of this money might have reached the Al-Shabaab militant group. Treasury Secretary Scott Bessent announced this investigation after President Donald Trump labeled Minnesota as a hotspot for fraudulent money laundering. This all started under Governor Tim Walz's leadership.