By Jade
Lomeli
Proposed changes could make it easier for local Somalis to send money abroad to
loved ones.
A congressional committee is creating a bill that would decrease the risk for commercial banks to facilitate international transfers through Money Service Businesses, according to officials.
Late last week, the House Financial Services Subcommittee held an informational hearing to discuss weekly auditing requirements and antiterrorism financing laws that have caused banks to pull out of relationships with MSBs, Rep. Keith Ellison, D-Minn., said.
Many local immigrant communities depend on these money transfer services to send remittances to their loved ones. In late December, after two local Somali women were found guilty of providing support to a Somali terrorist group, a number of U.S. banks stopped facilitating the transfers. The Minnesota Daily reported this action sparked a crisis among East African communities in the area.
Ellison said the new bill would decrease the frequency of audits and hold the MSBs, rather than commercial banks, accountable for money laundering or suspicious activity.
“No one in the federal government told the banks don’t work with the hawalas,” Ellison said. “They made a business decision because it was too expensive, and failure to obey the Bank Secrecy Act could subject to significant civil and criminal penalties.”
Ellison said the committee is working to lower the regulatory threshold for commercial banks because U.S. remittances account for a large portion of Somalia’s national income. But some banks are still wary.
Nicole Sprenger, a US Bank representative, said that while they understand the need in the community for money to be transferred, the bank also has a duty to abide by the law.
“We have a responsibility to the nation and our regulators to make sure that money gets transferred to the right hands,” Sprenger said.
For more on how the bill could impact local communities and businesses, check out Tuesday’s Daily.
Source: Minnesota Daily
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