Saturday, September 16, 2006
Associated Press
MINNEAPOLIS — Money-transfer businesses that Somalis in the Twin Cities use to send money to their families back in Africa will remain open temporarily after fears that they would close, a Somali organization said.
The services were in jeopardy due to a change in federal regulations designed to crack down on the financing of terrorist organizations. Many of the nation’s top banks decided to close their accounts with the money-transfer services, determining it was too burdensome to comply with new rules. The deadline for some closures was Friday.
The dozen or so money-transfer centers, often called hawalas, have patched together arrangements with alternative banks, said Garad Nor, president of the Somali Financial Services Association.
“For the moment, business will be running as usual,” Nor said. “Our customers have been confused. We want them to know that hopefully everything will be OK.”
Nor said his organization is working with Minnesota’s Congressional delegation, the United Nations Development Program, banking officials and others to try to create a long-term solution.
Minnesota is home to the most Somali refugees in the country.
About $250 million is transferred from the United States to Somalia each year, according to the UN Development Program. And 65 percent of the people of Somalia rely on the cash for their food, housing and other basic needs, or to help them earn a living.
There is no central bank or functioning central government in Somalia.
Source: AP, Sept 16, 2006
