Hiiraan Online

 By Abdirahman Warsame
Monday, September 30, 2013

Somali Remittance Service fees are the most affordable inexpensive worldwide and the most efficient. The fees are nominal 5 or 4 per cent per $100, and the average of remittance is $200.00.

the employees of the industry (Somali Remittance) operate in some of the harshest and most difficult circumstances. They reach out to remote areas such as refugee camps, war zones, and anywhere that their service is needed in Somalia and neighboring countries. The Somali Remittance services are used by governmental and non governmental agencies such as United Nation organizations for example UNHCR, WFP, UNDP, UNICEF, US AID, Humanitarian and Relief Agencies such as OXFAM, MSF, and CARE and so on. Without the Somali Remittance Services livelihood of the Somali population would have been riddled by suffering and catastrophe.

The Somali culture embodies the beauty of sharing. In the language it is described as (aan wadaagno) which literally means let us help each other and share our blessings. It is not uncommon to see many neighbors joining a family that is cooking and sharing in their fortune. Today, the only source of income and the lifeline that the Diaspora communities provide to their families in back home is threatened by legitimate concerns and political agendas.

Its very unfortunate that most of the mainstream population in both the developed and undeveloped world do not understand the functions of the Somali remittance industry. Many believe remittance companies conduct their businesses underground and deem them untraceable and unreliable which is not accurate.

The Money Service Business or remittance Companies, which Somali Remittance falls under, are governed and regulated by international financial norms. The companies are regulated as strictly as banks. Furthermore, the remittance companies abide the rules and regulations of countries they operate in, particularly the United States of America. Remittance companies cannot open their doors unless they fulfill the following conditions:

1. State Money Transmitter License: to obtain a state license requires a long process starting with background checks, examination of assets and proving the capacity to begin such a business venture. Every State in the USA requires a license, and there is no magic license that allows you to operate in all states.

2. Bond: Each state requires the Licensee to have a bond in order to secure and safeguard the customer’s monies in the event of bankruptcy or other unforeseen failures or circumstances. In some States the bond cap is over 1 Million Dollars.
3. Financial Crimes Enforcement Network (FINCEN) Registration: - Money remittance companies or Money Service Businesses must get approval from the United Treasury Department office of FINCEN.

On top of these requirements, Money Services Business that Somali Remittance are part of and are subject to the legal provisions of various laws and regulations including;

ü  The Bank Secrecy Act

ü  The USA PATRIOT Act

ü  Anti Money Laundering Law, 18 USC § 1956

ü  Prohibition of Unlicensed Money Transmitting Business, 18 USC § 1960

ü  The Office of Foreign Assets Control (OFAC) Regulations

ü  The Financial Crimes Enforcement Network (FinCEN) Regulations

ü  IRS Title 31 Office inspection rules

ü  Gramm-Leach-Bliley Requirements

ü  State Requirements

ü  And others that I didn’t listed here.

 Therefore, the question that comes to mind is, if the Somali Remittance Companies are abiding monetary rules and regulations why do they not have (affiliation with the banks)Bank relationships?

The precise answer to this question lies with the banking industry. The industry has set criteria by which they screen clients and Banks follow guidelines established by the Department of the Treasury office of Financial Crimes Enforcement and Federal Banking agencies. Therefore, when banks feel a client poses a potential risk, they immediately suspend their relationship. The “risk” Somali Remittance companies present is caused by their operation in areas of geographical risk. Secondly, lack of functionality on the Somali government’s part in monitoring and regulating the remittance industry has inhibited bank cooperation.  Farther more financial institutions of Somalia such as the Central Bank of Somalia are not fully functional and it has not yet established financial regulatory agency that to abide international laws of combating money laundering and terrorist financing.

To further resolve this matter we must consider the political implications of the question. We recently met and had conversations with the Somali government who deeply understand the role of the industry, in the livelihood of the Somali population, and the role remittance plays in the security of the country as a whole. Yet it seems the Somali Government does not understand the circumstances under which Somali remittance companies operate in the western world.  Similarly the western world has its share of doubts and worries about:

a)      The lack of functionality by the financial institutions on the receiving end of remittance, such as the Central Bank of Somalia, that oversee and regulate needs of their western counterparts.

b)      The second worry is associated to the security concerns, wars, and conflicts of the region.

Where as the Somali government sees this matter in another perspective:

a)      They believe Somali remittance companies cannot be sustained based on discussion they had with their western counterparts.

b)      The Somali Government also believes the Central Bank of Somalia can in the near future partially fulfill Somali remittance services. They based their analysis on models of neighboring countries that do not have a free market style. Opinion B could be beneficial if Somali government seeks a state led economy or controlled market, but still I would advise the Somali government on the opposite. The measures proposed by the government are neither feasible nor possible at the current time. The Central Bank of Somalia has no assets, no financial credibility, and no networking systems to reach the population.

I would like this brief article to be a starting point of long discussions regarding the future of Somali remittance companies.  I urge the Somali government, particularly the ministry of finance, to create financial regulatory agencies to oversee Somali remittance inside Somalia, and resolve the issues that international financial institutions are concerned. On the same token, it is essential that the Somali government not politicize their judgment and realize their limits.  They must reorganize time and financial progresses are needed to fill the role of Somali remittance companies which they cannot satisfy at the present time.

If the Somali government succeeds in creating the agencies aforementioned in this article, I believe the doubts of the international institutions will fade away and Somali remittance will continue its services.

Last but not least, we request that the western world and their financial institutions not only consider financial regulations but also contemplate the consequences this will create to the lives of Somali civilians if remittance is hindered. We also urge the Somali government to gear their policies towards free market initiatives, and to start up the mechanisms needed to satisfy the demands of international financial institutions.

Finally, the Somali Remittance companies have proved their ability to abide by financial laws, and gratify the demands of their respective governments. Somali Remittance companies are ready to compete in the market and their capability has been recognized by companies that have been in the industry for hundreds of years.

Abdirahim Warsame

Former officer of Commercial Bank of Somalia

and veteran of Money Service Business more than two decades

you can reach him via e-mail [email protected]

Ku tiirsanaanta shacabka Soomaalida ee Xawilaadaha iyo aragtida siyaadaseed ee la soo deristay

Waxa jirta maahmaah soomaliyeed oo tiraahda “ Caruurtu Mulaca cayaar bay u dishaa , isagana waa u qur gooyo ” Waxaan uga socdaa Odhaahdaa inaan iftiimiyo in dad badan oo soomaaliyeed  ay noloshoodu aad u tiirsan tahay adegyada xawaaladuhu ay qabtaan”. Dakhligaas xawaaladaha loo soo mariyana  ay tahay waxa  keliya ee badbaadiyay mujtamaca soomaaliyeed. ilaahayna u fududeeyay adeegyadaas. Waxaana la ogsoonyahay suuqa xawaaladaha caalamka inay yihiin kuwa ugu sicir jaban (Service fee), tusaale ahaan $100 doolaar khidmadiisu waa $5 meelaha qaarna waa $4 , celceliska (average) lacagaha laga diraana waa $200.  ,duruuf kastana way ku shaqeeyaan sida xeryaha qaxootiga, goobaha dagaalada iyo meel kasta oo baahi loo qabo inay gaadhsiiyaan adeegooda.hadii aysan jiri laheyna duruufaha dadka soomaalidu aad bay u liidan lahayd. Waxa kale oo Adeega shaqada Xawaaladaha Soomaaliyada adeegsada hay’adaha Dawliga ah iyo Kuwa aan dawliga ahyna,sida Jimciyada Quruumaha ka dhaxeysa (United Nations) haya’adaheeda sida UNHCR,WFP,UNDP,UNICEF. USAID iyo kuwa aan dawliga ahaynba sida OXFAM, SAVE THE CHILDREN, CARE, MSF iyo kuwo kale oo badan oo aan halkan ku soo koobi Karin.

Waxa kale oo jirta in Somaalidu ay leedahay taariikh iyo dhaqan wax  wadaag ah oo reerkii dabkiisu baxayo ee wax karsanaya in lala wadaago wuxuu haysto oo dad badan isku dul nooliyihiin. Laakiin aad moodo in maanta in la siyaasadeeyay marinka yar ee dadka qurbaha joogaa ku caawinayaan eheladooda joogta Somalia ee ay haysato duruufta qalafsan ee nololeed.

Intaas  hadii aan ku dhaafo araarta oo aan u soo noqdo qoraalkani, waxa jirta dadka badankoodu inaanay fikrad sax ah ka haysan sida ay u shaqeeyaan Xawaaladahu (Somali remittance companies) oo dad badani ku tilmaamaan shaqo lagu wado suuq madow (underground) oo aan lahayn hab lagu ogaado ama lagula socon karo qaab socoka shaqadani.

 Adeegga Dirista Lacagaha ( Money Service Business) oo ay ka mid yihiin Xawaaladaha Somaliyeed  waxa lagu dhaqaa ama lagu xukumaa sharciga lagu xukumo Hayadaha Dhaqaalaha (Financial Institutions) sida Bankiyada, waxayna raacaan sharciyada u yaala wadamada ay ka shaqeeyaan ,gaar ahaan wadanka Mareykanka lamana furi karo  Shaqo Xawaaladeed ( remittance business) ah  ilaa inta laga helayo saddexdan arrimood

1-       Ruqsada Dirista Lacagaha ee Gobolka (State Money Transmitter License):-  oo loo maro dariiq adag oo dheer oo u baahan hanti iyo awoodba. (Assets and capacity),. Sharciga Gobol  walba oo aad ka shaqeynayso waa inaad ka heshaa ruqsad (license).

2-      Bond:-  in loo baahanay damaanad buuxda si loo ilaaliyo  (secure)  hantida dadka macaamiisha ah.Qaarkoodna gaadhan hanti ka badan $1,000,000.00 per state.

3-      Xawaaladuhu waa in ay iska diiwaan geliyaan –Wasaaradda Maaliyada (Registration Approval from Treasury Department – FINCEN registration)

Sidoo kale  Adeegayda Dirista Lacagaha (Money Service Business) waxa lagu xukumaa sharciyadan;-

ü  The Bank Secrecy Act

ü  The USA PATRIOT Act

ü  Anti Money Laundering Law, 18 USC § 1956

ü  Prohibition of Unlicensed Money Transmitting Business, 18 USC § 1960

ü  The Office of Foreign Assets Control (OFAC) Regulations

ü  The Financial Crimes Enforcement Network (FinCEN) Regulations

ü  IRS Title 31 Office inspection rules

ü  Gramm-Leach-Bliley Requirements

ü  State Requirements

ü  And others that I didn’t listed here.

Waxa intaas u sii dheer in Hay’adaha Amniga (law enforcement) oo hadii ay wax uga baahdaan Xawaaladaha kadib markay sharciga soo maraan ay la shaqeeyaan.

Maadaama xagii sharciga ay raacayaan  Xawaaladaha Soomalidu (Somali MSB)  maxay u heli la’yihhin xidhiidh bangiyeed  (bank relationship) wanaagsan?

Arrintaas, jawaabteeda oo koobani waa Bankiyada oo leh sifooyin (Criteria) ay wax ku baadhaan oo ay taasna ka helaan  Department of  theTreasury Financial Crimes Enforcement Network (FINCEN) iyo Federal Banking Agencies. Waxyaabaha markaas halistoodu (risk)  sareeeyo way ka taxadaraan  inay xidhiidh la yeeshaan, sida Xawaalada Soomalida oo ku sifeysan khataro goboleed (Geographical risk) sababtoo oo ah  meel halistoodu sareyso oo ay wax u diraan darteed, dhinaca  Soomaliyana  aanay  ka jirin dawlad u xilsaaran ama ilaalisa  ku-dhaqanka qawaniinta caalamka ee ilaalinta sharciyada (Anti-Money Laundering and terrorist financing etc).

Si hadaba aan ugu daadego dhinaca siyaasada ee arrintan Xawaladaha Somaalida , waxaan kala hadalnay Dowladda Somaalida  oo maamulkeedu uu si fiican u dareensan yahay halka  Xawaaladahu kaga jiraan nolosha shacabka Somaliyeed iyo weliba amniga dalka oo la ogsoon yahay sida uu maanta ku sugan yahay. Dawladda Somaaliduna waa qirtay kaalinta muhiimada leh  ee ay Xawaalada Somaalidu kaga jiraan  nolosha iyo amniga wadanka.

Waxaadse moodaa Dawladda Somalidu  inaanay faham fiican ka haysan duruufaha adag (complex)  ee  Xawaaaladaha  Somaaliyeed  ka haysta dhinaca Dawladaha reer galbeedka.

Dawladaha reer Galbeedka waxa haysta laba arimmod:-

a)      Dhinaca Somaaliya  oo aysan ka dhisnayn  hay’adahii dhaqaalaha sida Bangi  Dhexe (Central Bank) oo ilaalin lahaa shuruucda ay ka doonayaan reer galbeedku.

b)      Iyo Soomaaliya oo aanay weli ka jirin dawlad sugta amaanka guud  iyo dagaalo joogta ah oo ka socda dalka Soomaaliya.

Dawladda Soomalidana waxa haysta iyana laba arrimood :-

a)      Faham darro ay qabaan una haystaan in Xawaaladaha Somaalidu ay yihiin wax aan sii jiri karin, waxayna taas sabab uga dhigayaan dareenka ay ka arkeen reer galbeedka.

b)      Dawladdu oo  u aragta in xalka arrintani uu ku jiro  in Bankiga Dhexe  ee Soomaaliya uu adeegan xawaaladaha si dhaksho ah u fulin karo oo uu geli karo kaalmaha ay ku jiraan bankiyada wadamadda aanu ganacsigoodu furfurnayn (Free Market) gaar ahaan sida kuwa deriska oo kale.

Fikirkan danbe waa mid aan khladanayn marka laga hadlayo wadamada aan lahayn hab ganacsi oo xor ah (Free Market), inkastoo aan ku talinayo in Dawladda Soomaalidu ayna raacin habka wadamada deriska oo kale, laakiin waa fikrad aan joogin waqtigeedii aadna moodo in dawladda Soomaalidu muujinayso rajo uu ku shaqeyn karo Bankiga Dhexe ee Somaaliya oo aan ogsoonahay inaanu  lahayn wax  hanti ah (asset) , xidhiidh shaqana  (Network) aanay jirinba oo uu ka jiro oo keliya haduiu jiro MUQDISHO.

Maqaalkan kooban waxaan jecelahay inuu furo dood ku saabsan arrinkan, Masuuliyiinta  Dawaldda Somaalida ee howshan qaabilsan waa inay u fekeraan sidii ay u abuuri lahaayeen qayb u qaabilsan (unit) ilaalinta (oversight), Xawaaladaha Soomaalida  oo ku maamula  sida ay u ilaaliyaan sharciyada caalamku ka rabo dhinacooda (the remittance end part),.,Balse aanay ka siyaasadoobin fikirkoodu oo aanay isu dhigin inay waqtiga dhow ay fulin karaan hawshan ballaadhan ee ay kaalinteeda ku jiraan Xawaaladaha Soomaalidu. Cida dhigooda ah (counterpart) ee ku doodaya inaan jirin dawlad fulisa wixii looga baahnaa dhinaca kale ay iska wareystaan ayna u ballan qaadeen inay xagga wadanka Somalia ka hirgeglinayaan Haya’ado Dawladeed (regulatory agencies) oo ilaaliya korjoogna ku sameeya Haya’adaha dhaqaalaha (monitoring and regulating of all financial institutions).

Taas, hadii dhinaca Somalia laga helo waxaan qabaa in shaqadani socon doonto

Werwerka caalamka ka haysta Somaliyana  wax ka furfurmi doonaan hadii Dawladda Somaaliya kaalinteeda ka soo baxdo.

Gegebadii, Xawaaladaha Soomaalidu waxay muujiyeen inay ku shaqeyn karaan wixii caalakmu ka rabay, waxay kaloo tartan laga yaaban yahay kula jiraan xagga qiimaha shaqada (Service fee) shirkado soo jireen ah boqolaal sano oo aad ula amakaagsan shirakadahan soomaalida ee ku cusub suuqa adeegooda iyo sida ay u korayaan.

Waxaan kula talinayaa Dawaladda Somalida inay ku dhaqmaan habka ganacsiga furfuran, waxyaabaha wadanka u shaqeyayna oo ka mid yihiin  Xawaaladaha (Somali Remittance iyo Isgaadhssinta (Telecommunication)  inay ku fekeraan sidii loo sii horumarin lahaa taageerana u siin lahaayeen. Dawladuna abuuraan jawi wada shaqeynayd oo dhexmara Dawladda Soomaaliya iyo Shirkadaha Xawaaladaha oo xal loogu raadiyo jawigan hadda cakiran ee  la soo dersay meel ka mid ah ilâha dhaqaalaha ee dadka soomaalida ku tiirsan yihin.

Dawaladaha Galbeedka iyo Bankiyadooduna waa in arrintan ee ay ka eegaan

Dhinaca beniadamnimada (humanitarian ground) oo ay miisaana dhibaatada ay arrinkani ku keeenayso nolosha qofka shacabka oo aysan ku koobaan oo keliya dhinaca ilaalinta xagga sharciyada oo keliya hadii wax ka dhiman yihiin.

Cabdiraxmaan Warsame

Columbus, Ohio

Cabdiraxmaan wuxuu ka tirsanaa shaqaalihii  Bangigii Ganacsiga Soomaaliyeed, waxaadna kala xiriiri kartaa e-mailka:  [email protected]