Twin Cities Planet
Monday, January 23, 2012
“This is not fair. It’s not fair to single out one community. The
lifeline for so many innocent people depends on the money we send,” said
Abdulaziz Sugule, the former chairman of SAMSA (Somali American Money
Service Association) referring to Franklin Bank’s decision to end
remittances to Somalia last December 30. “I hope elected officials will
come up with a workable solution.”Sugule and many of the nearly
70,000 Somali that live in Minnesota are extremely anxious and worried
about how they are going to get money to their families in Somalia. In
some cases it is the only money they receive. According to the U.S.
Treasury Department, Somalis in the U.S. sent over $100 million home
last year.
The Somali community, like other immigrant communities, send what are
called “remittances” — in other words, money — back to relatives and
friends in their home country. But Somalis have had their efforts to
send money shut down recently by the decision of the Sunrise Banks,
which includes the local Franklin, Midway and University banks, to stop
aiding the Somali Money Service Business (MSB), otherwise known as
hawalas, in sending money to Somalia.The way the system works is
that the hawalas give money to Sunrise Banks, which then wire the money
to Abu Dabi. From there, it goes to the farthest reaches of Somalia,
sometimes by camel.
Sunrise Banks stepped in to aid in the
money-delivering process a few years ago after most major banks stopped
aiding the Somali community, citing pressure from the U.S. State
Department and Treasury Department. The government supposedly has
discouraged banks from aiding the Somali community because of purported
fears that the money being sent would aid terrorists in Somali.
However,
the U.S. government has not offered proof that money sent to Somalia
from the diaspora has actually gone to aid any terrorist organizations.
As
Minnesota Somalis desperately search for ways to send money to their
homeland, the question that looms largest and unanswered is why at this
time Sunrise Banks stopped aiding the remittances. Sunrise Bank
President David Reiling has never implied that the bank was pressured by
the government.
The media has speculated that Sunrise Bank’s
action resulted from the conviction of two Somali women in Rochester for
sending money to the wrong side in the Somali civil war. According to
the women, they had sent money to aid in famine relief in Southern
Somalia.
The U.S. government has contended that the money went to
fund Al Shabaab, the rebel group that holds most of famine-plagued
Southern Somalia. The U.S. has designated Al Shabaab as a terrorist
group affiliated with Al Qaeda.
The bank has said that it wants to
protect itself and limit any liability that may have come about as a
result of aiding with remittances and said in a statement, “Money
remittances from the U.S.-based Somali diaspora through the U.S. banking
system must have a new solution to satisfy the important legal and
regulatory requirements currently in place across the nation.”
According
to the bank, they have sought to work something out with the
government. “We have reached out to multiple government agencies and
officials, have made a specific proposal, and have told the agencies
that we are seeking a constructive exchange with them in an effort to
reach an accommodation that would satisfy the concerns of those sending
funds, the government and the bank.”
The Somali community and its
allies have held several rallies to bring attention to their plight
including one on January 6 at the State Capitol. To their credit,
elected officials in Minnesota have been very supportive. U.S. Senator
Al Franken and U.S. Rep Keith Ellison have been actively trying to come
up with a workable solution that does not put the bank at risk.
The
Minneapolis City Council, including the mayor, passed a resolution on
Thursday, January 12, entitled, “Support of the Somali-American
Communities’ Ability to Continue Remittances to the Horn of Africa.” The
resolution includes the following:
“Whereas, The Somali community
in Minneapolis provides significant financial support to their
relatives in Somalia that provide basic needs like food, shelter,
clothing and education: and
“Whereas, The halting of these funds causes great hardship to many people in need in Somalia:
“Now,
Therefore Be It Resolved the City Council of the City of Minneapolis
that we stand shoulder to shoulder with our Somali-American colleagues,
neighbors and constituents in their desire to support their loved ones
in the Horn of Africa and across the globe.
“Be It Further
Resolved that we strongly urge all concerned parties to find an amicable
solution that facilitates the normal flow of remittances without
compromising the safety and security of the United States.”
Council
Member Lisa Goodman asked, “Couldn’t the same kind of concerns be
brought up about monies going to Mexico? Couldn’t they be seen as aiding
in the drug war in Mexico?” Council Member Don Samuels expressed
concern that “the reputation of our country is at risk” and this could
create starvation — “The situation we would be exacerbating is not
okay.”
Unfortunately, it appears that the Somali community and
Somalia have been caught in the middle of the U.S. government’s efforts
to heighten the U.S. population’s fear of terrorism.
According to
Oxfam America, “This is the worst time for this service to stop. Any
gaps with remittance flows in the middle of the famine could be
disastrous,” said Shannon Scribner, Oxfam America’s Humanitarian Policy
Manager. [Up to a million people face starvation during the
drought-related food crisis in Somalia, now six months old, before it is
over.]
“The U.S. government should give assurances to the bank
that there will be no legal ramifications of providing this service to
Somalis in need.”
“Many transfer agencies are trying to comply
with the rules, but the more they comply the more rules they face from
the Treasury Department. Most of the people [Somalis] have no jobs. I
don’t know what will happen if we can’t send money,” said Imam Hassan
Mohamud of the Minnesota Da’wah Institute.