Members of Minnesota’s Somali community were responsible for significant portions of the fraud, and that federal counter-terrorism sources confirmed millions of dollars in stolen funds were ultimately transferred to Somalia.
The advisory specifically calls on banks, brokers, and financial service providers to identify and report customers who may fit profiles commonly linked to money laundering for cartels.
The shake-up comes amid sweeping job cuts at the IRS as part of a broader effort led by Elon Musk’s Department of Government Efficiency (DOGE) to slash federal payrolls.
"Laundered drug money is the lifeblood of the Sinaloa cartel’s narco-terrorist enterprise, only made possible through trusted financial facilitators like those we have designated today."