Minnesota, United States – The U.S. government has confirmed it is investigating claims that Minnesota tax revenues are being diverted to Somalia’s Al-Shabaab militants. A broad new inquiry is now in progress.
Treasury Secretary Scott Bessent indicated the investigation is ongoing and results will be shared upon completion.
The probe arises amid administration statements calling Minnesota a center for illegal finance and money laundering. Congressional sources have shared unconfirmed reports of fraudulent networks in the state directing funds to the terrorist group.
Minnesota Governor Tim Walz noted in a recent interview that the state attracts financial offenders, but insisted those responsible will be prosecuted.
In March 2024, the U.S. Treasury’s Office of Foreign Assets Control sanctioned several Somali individuals and entities in the Horn of Africa, the United Arab Emirates (UAE), and Cyprus for supporting Al-Shabaab.
Al-Shabaab, affiliated with Al-Qaeda, generates more than $100 million yearly through extortion and illegal taxes in controlled territories, with some funds flowing to core Al-Qaeda operations.
The U.S. is partnering with Somalia’s Federal Government and regional allies to dismantle Al-Shabaab’s financial systems and disrupt its revenue streams.
This effort extends beyond a mere financial review, intersecting U.S. domestic politics, diaspora relations, and international counterterrorism efforts, while navigating homeland security and overseas economic stability.
