Minn. Banks to End Routing of Money to Somalia

Minn. Banks to End Routing of Money to Somalia

By Ellen Cannon

     Money transfers by Somalis living in Minnesota to their Somali families in Somalia will end by December 15, 2011. Fearing that a portion of the money transfers might be used to fund terror organizations like Al- Shabaab, Minnesota banks will discontinue its service with money transfer businesses called hawalas. Hawala owners met with Minnesota bank officials in an effort to get a three month extension. Bank officials of Franklin Bank, the only remaining bank to service hawalas, turned down the request.

     The closing of the money transfer system is causing panic among Somalis living in Minnesota, which has the largest concentration of this nationality. According to Minnesota Public Radio, “Somalia lacks a formal banking system.  When the country’s government collapsed in 1991, so did its financial system. Remittances from the diaspora keeps the Somali economy functioning.  A Somali American in Minnesota can go to a local hawala and write a check to his mom in Mogadishu for $200.  Within 24 hours, she will receive it .  The CIA estimates that Somalia receives about $1.6 billion in remittances from Somalia around the world.” (Minnesota.publicradio.org/ 12/9/11)

     Large international aid organizations are still able to send money transfers through Kenya or Ethiopia, but those options are not open to individuals trying to assist their families with money for food, medicine, and basic needs of everyday life.

     Dahir Jibreel, executive director of the Somali Justice Advocacy Center underscored that panic is spreading among the large community of Somalis living in Minnesota who do not know what will happen to their families without this money.

     Aden Hassen of the Somali American Money Wiring Association explains that although the process or sending money through a hawala is a quick and easy process it as a complicated process for banks who have to fill out the paperwork and keep up the complex record keeping designed to prevent the financing of terrorist groups in Somalia. Prior to 9/11 Wells Fargo, U.S. Bank and TCF provided services to Somali hawala. These banks terminated this transaction relationship after 9/11. In Minnesota the Sunrise Community banks, which are family owned and service the Twin Cities started working with the Minnesota Somali community with regard to hawalas three years ago. ( A. Forliti, APwww.startribune.com12/9/11)

     The decision to terminate the relationships with Minnesota banks and hawala’s is a result of recent court cases  directly linking Somali women from Minnesota in the funneling of money  through the local hawala system, to support the terror group, Al-Shabaab in Somalia.

     In a written opinion delivered on June 21, 2011, Chief U.S. District Judge Michael Davis refuses to dismiss indictments against two Minnesota women accused of funneling money to the terror group Al-Shabbab.  The indictment alleged that as part of a larger conspiracy, the two women of Rochester, Minnesota: “raised money for al-Shabbab by soliciting funds door to door in Somali communities in Minneapolis, Rochester, and other locations in the U.S. and Canada. In addition, the defendants allegedly raised money by direct appeal to individuals participating in teleconferences that featured speakers encouraging donations to support al-Shabbab.” According to the indictment, the hawala money transfer was used by the women and to get the money to al- Shabaab. They operated the process by using false names identify the recipients of the funds in order to conceal that funds were being provided to the terrorist group. The indictments list 12 money transfers allegedly directed by the women to Al Shabaab. Ellen Cannon, examiner.com “Minn. Trial Accuses U.S. Citizens of “Deadly Pipeline” to Al-Shabaab; Ellen Cannon, examiner.com” Minnesota Judge Upholds indictments in terror Case”)

     The women were convicted in October of lending material support to a terrorist group as well as making false statements to government officials.

     More recently, Nima Yusuf, a Somali refugee living in San Diego pleaded guilty to conspiracy to provide material support to the terrorist organization al –Shabbab. She admitted assisting four men from Minnesota who were accused of joining a Somali terror group to fight for al-Shabaab. Ms. Yusuf admitted to using the hawala money transfer system to send $1,450 to these men fighting for Al-Shabaab.  (Ellen Cannon, examiner.com “San Diego Woman Pleads guilty of Support to Al-Shabbab)

     Because of the impact the termination of  hawalas has had on the community, efforts to find some alternatives are being discussed.

     Sunrise Bank chief executive David Reiling said, “My bank wants to continue wiring money to Somalia but has to find a way to remove the risk.” “The sheer magnitude, he said, of the human need, weighs very heavily on my shoulders. Yes we have a banking issue and we all want to ensure that money does not get into the wrong hands. I think it’s up to all of us to try to find a solution.” (www.startribune.com. 12/9/11.  Reiling noted however, “that the only way we know at the moment to mitigate that risk is to close these accounts until we can find another solution to work with government to re-establish those lines.” (MPR radio)

     Senator Al Franken (D-MN) has intervened to assist the Minnesota Somali community. He has written to both Secretary of State Hilary Clinton and Secretary of the Treasury Tim Geithner to explore alternative routes to assist the community in getting money to their families. Franken stated, “”Ending remittances from the U.S. would be a victory for Al-Shabbab which could claim America was preventing needed funds from getting to suffering Somalis.”

     Illinois Senator Mark Kirk (R-IL) is one of the strongest voices in Congress addressing the domestic and international threat posed by Al-Shabbab. Agreeing with the findings of the House committee on Homeland Security he underscores six points regarding Al-Shabaab: (1) At least 40 or more Americans have joined the organization;(2) So many Americans have joined that at least 15 of them have been killed fighting for Al-Shabaab; (3) Three Americans who returned to the U.S. were prosecuted, and one awaits extradition from the Netherlands; (4) At least 21 or more American followers of Al –Shabaab members overseas remain unaccounted for and pose a threat to the U.S. homeland; (5) Al-Shabaab has the intent and capability to conduct attacks or aid core Al-Qaeda in the Arabian Peninsula in Yemen by striking U.S. interests and the U.S. homeland; (6) Al-Shabaab has not only openly pledged loyalty and support to Al-Qaeda, and AQAP in Yemen, but has cemented alarming operational ties to broth groups. (http://africanpress.me/11/3/11)