INTRODUCTION:
US financial laws designed to stop illicit money transfers may end up empowering criminals and extremists in Somalia.
That's the conclusion reached by some Somali-Americans seeking to send money back legitimately to their families through traditional services called hawalas.
The remittances are often a lifeline for Somalis, who use the transferred cash to buy essentials like food and medicine.
From Washington, Daniel Ryntjes reports...
IN: A handful of Somal-Americans...
OUT: SOC
DUR: 2'03
AIR: http://fsnradionews.com/feeds/0709somali-dr-air.mp3
ARN: http://fsnradionews.com/feeds/0709somali-dr-arn.mp3
GENERIC: http://fsnradionews.com/feeds/0709somali-dr-generic.mp3
ICRT: http://fsnradionews.com/feeds/0709somali-dr-icrt.mp3
RNZ: http://fsnradionews.com/feeds/0709somali-dr-rnz.mp3
TRIBUTE: http://fsnradionews.com/feeds/0709somali-dr-trib.mp3
VATICAN: http://fsnradionews.com/feeds/0709somali-dr-vat.mp3
VON: http://fsnradionews.com/feeds/0709somali-dr-von.mp3
ZIZ: http://fsnradionews.com/feeds/0709somali-dr-ziz.mp3
SCRIPT:
A handful of Somali-Americans have in recent years been recruited and trained by the radical Somali Islamic group Al-Shabab.
That's led to concerns from banks here that they risk breaking US laws designed to prevent illicit money transfers to extremists and criminals.
Somali American Guled Kassim is a consultant for humanitarian organizations and businesses...
Guled Kassim, Somali-American
"I would say the vast majority of families including mine that are in Somalia, in country and actually also in Kenya as well rely on these monies being sent over. It's essentially a lifeline because you have to remember there is no government, so there is no essential services."
To receive money from the US, they rely on a traditional and informal service called a hawala. But US and other international banks are denying hawalas services to wire money internationally. The banks are required by US law to know who is originally sending the money.
Somali American Guled Kassim says that when the banks the system will increasingly rely on whoever is willing to physically bring in large foreign cash supplies.
Guled Kassim, Somali-American
"You're making money, you're taking risks. So it's going to be whatever is efficient, whatever is available and that's where you could have bad actors come in and really either play a monopolistic role and or be empowered, that now they have control of the flow of money, literally."
A recent report estimated that annually a total of $1.3 billion is sent there, much higher than the total of humanitarian aid flowing in.
The US Treasury says it encourages the hawalas to stay in compliance with US laws and regulations and that there remain legitimate ways for Somalis to transfer money.
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