Treasury Secretary Scott Bessent is implementing a new policy that prohibits migrants on government assistance from sending money outside the U.S., part of a broader effort to curb fraud and potential terror financing. The move follows reports that remittances from Somali communities in Minnesota may have indirectly funded the extremist group al-Shabaab.
IRS Audits and Fraud Crackdown
The Treasury Department is coordinating with the IRS to audit banks suspected of facilitating money laundering. Bessent emphasized that the policy targets those exploiting welfare benefits while sending funds abroad. “If you’re wiring money out of the country, one of two things must be true: you’re either getting too much money and your benefits must be cut, or you’re part of this conspiracy,” he said in a Fox News interview.
New Reporting Requirements
Under the new rules, money service businesses must require customers to disclose whether they receive public assistance before processing international transfers. Those on welfare will be blocked from sending funds overseas unless they can prove legitimate income sources. “We are going to start pushing that you cannot wire money out of the country if you’re on public assistance,” Bessent stated.
Broader Economic Impact
Remittances—money sent by migrants to their home countries—reportedly drain up to $200 billion annually from the U.S. economy, according to the Federation for American Immigration Reform (FAIR). Bessent framed the crackdown as a measure to protect taxpayer dollars and national security. “Treasury will deploy all tools to bring an end to this egregious unchecked fraud,” he said.
However, the secretary clarified that individuals who can verify their income sources will still be permitted to send money abroad without restrictions. The policy is expected to face legal challenges from immigrant advocacy groups.
Source: www.breitbart.com — https://www.breitbart.com/immigration/2026/11/12/treasury-sec-scott-bessent-bans-migrants-on-welfare-from-sending-cash-back-home/