United states of America lifts ban on Hawalo & Banks

[Coeus]

U.S. Banks Lift Ban on Hawalas

The United States has lifted a ban which was recently imposed on informal Somali money transfer services, known as Hawalas, which enable thousands of Somalis to send or receive small amounts of money to their relatives and loved ones.

According to dealers and local agents, Hawalas in the state of Minnesota have been allowed to reopen their doors just weeks after US authorities ordered their closure.

“The U.S. government has allowed Somali Hawalas in Minnesota to transfer money so Somalis can send money to their relatives and families in small amounts," said Garad Nur, Head of Tawakal Money Express.



He said with the lifting of the ban, customers can now send sums less than $500. Nur added that they are allowed to transfer greater than $500 in emergencies.

He added that customers have been begging him and trying to persuade the US government and banks to allow the sending of aid to relatives in the Horn of Africa, so when they heard that the governments allowed aid to be sent again, they were thrilled.

Ahmed Ali Dahabshiil, a businessman in Minessota, spoke with Somalia Report, "The US government has allowed the transfer of money to Somalia and the Horn of Africa in small amounts. While some families in Minnesota are happy with this decision, others are not happy because they believe this small amount cannot cover the needs of their families."

Omar Jamal, secretary of the Somali Mission to the UN, has been meeting with Somalis in Texas and Minessota and he said that he met people weeping because they cannot get money to their families in East Africa. Some families complain that there are those who cannot pay their rent and face eviction from apartments in Nairobi, because they have not received remittances. He believes this decision will give a degree of relief, but this will not cover long-term needs.

Fariha Ahmed, a Somali woman in Kenya, told Somalia Report she is happy that her family can send her money in Nairobi, that she is grateful for the financial assistance, even if it is not a lot. Hawalas in Minnesota stopped accepting transfers to Somalia in late December after US banks that handled their transactions closed their accounts, as the bank feared at risk of violating rule against financing terrorist organizations.

Tawakal Money Express in Minnesota had a four-day training workshop for its staff and agents in Somalia on compliance with regulations against money laundering, to give agents a better understanding of the regulations and train them in ways to identify and prevent illegal transactions.

[Rainbows]

Shit. I hope they reinstate it.

[Coeus]

Shit. I hope they reinstate it.

Me to. This was exactly what destroyed the largest hawala company in 2006. They were outright banned and therefore lost all their business.

[Rainbows]

Dahabshiil were behind that. I can swear on it.

[Witticism]