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Africa Horn
Somalis panic as cash flow dries up after U.S. remittance lifeline cut
2015-02-22
NAIROBI -- Somali families are panicking and businesses are running short of funds two weeks after the last major U.S. BANK stopped transferring money to the fragile Horn of Africa country, development groups said.

Somalia has no formal banking system due to decades of war, so Somalis living abroad use money transfer companies to send some $1.3 billion home each year - far more than the country receives in aid, Oxfam and Adeso said in a report on Thursday.
A fair bit of the cash gets earmarked for that favorite charity, the Widows Ammunition Fund...
Merchants Bank of California closed its ACCOUNTS with Somali-American transfer companies on Feb. 6, cutting off a lifeline to millions in a country plagued by widespread hunger, recurrent drought and an Islamist insurgency.
Got a quiet line from Treasury, the bank did...
Virtually all major U.S. BANKS have ended remittance services to Somalia over the last few years because of regulations that hold banks responsible if they transfer funds to "terrorist" groups like Somalia's al Shabaab.

Merchants Bank handled 60 to 80 percent of the money sent to Somalia from the United States, which is the country's biggest source of remittances, Adeso and Oxfam said.
Why couldn't we have done this five years ago?
"There has been quite a lot of panic from the diaspora with some (money transfer) branches actually being closed," said Degan Ali, the Somali-American executive director of the charity Adeso. "There is a bit of scrambling trying to find alternative (money transfer operators) to work with."

The Somali community in the United States has started a Twitter campaign using the hashtag #IFundFoodNotTerror.
Sure you do, Swampy. In that case you won't mind helping us out a bit...
"The money I send back to Somalia helps my siblings go to school," tweeted Ifrah Ahmed. "They are not terrorists."

Some 40 percent of Somalis rely on remittances for daily needs, such as food, medicines and school fees, Adeso said.

Blind and white-haired, Hassan Hussein Bulale's only source of income is $50 a month from a relative in the United States.

"If that money stops, it will be devastation," the elderly man, who lives in the city of Hargeisa, told Oxfam.
Reporters anywhere in the world can find a sympathetic figure on command...
While most transactions are a few hundred dollars sent to needy family members, it is Somali business people and traders, trying to transfer thousands of dollars, who have started feeling the impact of the Merchants Bank ACCOUNT closures.
The boomers and hard boyz are actively working to solve the problem...
"Cash-flow is becoming a problem in the system," said Adeso's Ali. "(The) pipeline of cash coming in from the U.S. is decreasing."

Somalia's remittance crisis has been intensifying for years. Britain's Barclays Bank closed its ACCOUNTS with Dahabshiil, the largest Somali money transfer company, in 2014. In Australia, Westpac, the only bank partnering with Somali remittance companies, is due to close their ACCOUNTS at the end of March, the report said.

"We are just lurching from crisis to crisis", said Ed Pomfret, Oxfam's Somalia campaign manager. "These governments need to take action."
Like what -- open up the money spigot to the Shaboobs?
Britain has been working with the World Bank on a "Safer Corridor" initiative to tighten the scrutiny of Somali money transfers through measures such as biometric identity cards for recipients in Somalia. It has also told banks dealing with Somali money transfer companies that they will not be prosecuted if money ends up in the wrong hands if they can show they have undertaken due diligence.

But the U.S. government is not matching these efforts to ensure money continues to flow into Somalia, where 3 million people - about a third of the population - require aid, campaigners said.
49% is the standard tipping point. We'll jump in then, at which point turning back will be virtually impossible. It's the way we roll.
"This should be a real priority because otherwise... it is going to be a lot more expensive in terms of the aid that is needed," Pomfret said.
Posted by:Steve White

#5  If you’re looking to celebrate Mexican Independence Day, one party in Santa Rosa is free and fun for the whole family.
Fiesta de Independencia, on Saturday at the Wells Fargo Center for the Arts, honors both Mexican independence and the rich history of the Latino culture and people with food, music, dancing and art. (The party’s a few days early, as Mexican Independence Day is Tuesday.)

This is the fifth year of the Fiesta, and organizers say it will be the biggest and boldest yet.

“Over the years, the festival has grown into a fun and lively celebration of all things Latino,” says Tracy Sawyer, arts and outreach program manager for the Wells Fargo Center. “It’s a great way to sample Latino culture and spend a Saturday afternoon.”

Link

Regrettably, missed it again this year. The long money transfer line at the Publix should have served as a reminder.
Posted by: Besoeker   2015-02-22 11:51  

#4  Al-Barakat, known for cheap overseas money transfers, was a mainstay of the Somali economy until a 2001 clampdown.When it was operational, al-Barakat operated in 40 countries and transferred up to $140m a year.

Al-Barakat was [black]listed in 2001. Later that year, the US blacklisted the firm's representatives, suspecting that the company had been involved in the transfer of funds used in the 11 September attacks - a suspicion that was later refuted by the report on the official inquiry into the attacks.

The company operated on an ancient system known as hawala, which uses food, fuel, electronics or gold as a way of balancing the books between operators - hawaladas - in different countries. Migrant workers can send money home to relatives by depositing money with a local hawalada, who then instructs an agent to disburse the money in the recipient's country.
Posted by: Pappy   2015-02-22 11:43  

#3  All the cash did was prolong their agony.
Posted by: Rob Crawford   2015-02-22 10:05  

#2  Task Force Ranger, bitchez.
Posted by: Matt   2015-02-22 09:19  

#1  I know some Nigerian bankers they could use.
Posted by: Skidmark   2015-02-22 00:55  

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