MINNEAPOLIS – The concern was obvious among Somali community elders at the Brian Coyle Center in Minneapolis Friday afternoon. The men worried about the fate of families and friends if they cannot wire money to help them.

Somalia, on the “horn” of East Africa, has been in political disarray with no viable central government since 1991. The country is in the midst of a famine that threatens millions of people.

“It is really bad. The fear is that you will not be able to send money to Somalia. It is actually the lifeline of many Somalis,” according to Saeed Fahia, Executive Director of the Confederation of Somali Communities in Minnesota.

The elders were reacting to an announcement from Franklin Bank that it will no longer allow “hawalas” to have accounts. The hawalas are wire transfer services that need accounts with banks here in order to send money overseas. Hawalas, however, are informal organizations that rely on the trust of those sending the money, according to Fahia.

The U.S. Government has been concerned that money meant for the famine victims in Somali has actually been diverted into the hands of terrorist organizations like al-Shabab.

In October, Amina Farah Ali and Hawo Mohamed Hassan of Rochester, Minnesota were convicted in Federal Court of sending money to al-Shabab.

American banks do not want to be in the position of inadvertently helping to fund terrorism and fear they could be liable under U.S. law. Franklin Bank, through its parent company, Sunrise Community Bank, was the last Minnesota lending institution still allowing halawas to have accounts.

An association of hawalas was reportedly attempting to convince Sunrise to delay the implementation of the exclusion of the hawala accounts beyond the mid-December time frame. No information about the success or lack of it has been available. Bank officials reportedly would like to find another way to send money, other than the hawalas.

“There does not seem to be alternative (to the hawalas), since there is no government in Somalia that can open banks, national banks, that could take over money wire services,” said Fahia.

Franklin Bank continues to raise money for those facing troubles in Somalia. The bank offices encourage visitors to contribute at the branches for refugee camps in Mogadishu, the capital.

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