FILE PHOTO: U.S. Treasury Secretary Scott Bessent looks on as he speaks to the media, following the trade talks between the U.S. and China, in Kuala Lumpur, Malaysia October 26, 2025. REUTERS/Hasnoor Hussain/File Photo/File Photo

Dec 1 (Reuters) - The U.S. Treasury Department is investigating allegations that tax dollars from Minnesota may have been diverted to the Al-Shabaab militant group in Somalia, Treasury Secretary Scott Bessent said on Monday.

Bessent announced the investigation on X days after U.S. President Donald Trump called Minnesota a "hub of fraudulent money laundering activity" under Democratic Governor Tim Walz, an apparent response to unverified media reports shared by several Republican lawmakers that Al-Shabaab had benefited from fraud committed in Minnesota.

Walz's office did not immediately respond to a request for comment from Reuters.

(Reporting by Christian Martinez and Ismail Shakil; editing by Costas Pitas)