In Somalia, fears mount over US wire-transfer block

Associated Press

MOGADISHU, Somalia

Somali officials said Friday they are pleading with U.S. authorities to persuade banks to reconsider a decision to block money transfers from Minnesota’s Somali community to relatives in this Horn of Africa nation, where anarchy has given safe haven to an al-Qaida linked terror group.

The institution that handles the bulk of money transfers from Minnesota to Somalia — Sunrise Community Banks — has said it will discontinue the service at the end of December over fears it could be at risk of violating government rules intended to clamp down on the financing of terror groups.

Minnesota political leaders Rep. Keith Ellison and Sen. Al Franken, both Democrats, are seeking solutions. Meanwhile, Somalis in Minnesota and elsewhere have been regularly talking with the bank, officials from the U.S. Treasury, and other authorities.

But the bank issued a statement Friday saying that without legal and regulatory relief, it must stand by its decision to close its accounts with those money service businesses on Dec. 30.

“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 this nation,” the bank said in its statement.

Hassan Warsame, a consultant and adviser to the newly formed Somali American Money Services Association, said the bank’s announcement is disappointing, especially after weeks of work on the issue.

“Now, it’s really going to be up to the money service business owners to come together and decide what is the next step, what will happen,” Warsame said.