WASHINGTON/MINNEAPOLIS – The U.S. government has officially confirmed that it is investigating serious allegations that tax revenues collected in Minnesota are being funneled to the Al-Shabaab militant group in Somalia. A new, comprehensive inquiry is now underway.

Treasury Secretary Scott Bessent stated the investigation is active and that results will be disclosed upon completion.

This probe follows politically charged rhetoric from the U.S. administration, which recently characterized Minnesota as a “hub for illicit finance and money laundering.” Concurrently, congressional sources have circulated unverified reports alleging that fraudulent financial networks operating in the state have been channelling funds to the terrorist organization.

Minnesota Governor Tim Walz acknowledged in a weekend interview that the state has drawn financial criminals, but he emphasized that any individuals found culpable will face prosecution.

The U.S. Treasury’s Office of Foreign Assets Control (OFAC) had previously sanctioned, in March 2024, several Somali individuals and companies across the Horn of Africa, the United Arab Emirates, and Cyprus for allegedly financing Al-Shabaab.

Al-Shabaab, which maintains ties to Al-Qaeda, is assessed by the U.S. Treasury to raise over $100 million annually through extortion and illicit taxation in areas it controls, with a portion of these funds transferred to central Al-Qaeda networks.

The U.S. government affirmed it is collaborating with the Federal Government of Somalia and regional partners to dismantle Al-Shabaab’s financial infrastructure and degrade its funding networks.

This investigation is more than a financial audit; it is a politically charged maneuver that sits at the intersection of domestic U.S. politics, diaspora community relations, and international counterterrorism strategy. Its execution will test the balance between securing the homeland and sustaining a fragile economy abroad.