Somali remittance companies have continued to be the only lifeline for their countrymen despite the increasing controls imposed by the United States and Europe since Sept. 11, an official of one money-transfer company said yesterday.

“We follow strict rules concerning money transfers. We demonstrate transparent services and have proved that we are not part of any terrorist network or money laundering entity. We have legal agents in North America and some European countries,” Dahir Jumale Addan, general manager of Towfiq Nationlink Company, told Arab News by telephone from his office in Mogadishu.

Due to the civil war, over 2.5 million Somalis have fled their homes. Most of them sought refuge in Europe and North America. “In a country with no effective government, no formal banks and few sources of income, money transfer firms which enable overseas Somalis to send money home are essential for ordinary people’s economic well-being. The lack of remittances is directly affects the very survival of many Somalis,” said Addan.

Last November, US President George W. Bush named Somalia’s Barakaat company for transferring a “financial terrorist” that helped fund the activities of Al-Qaeda. Bush said that its offices, both at home and abroad, had to be shut down. Towfiq Nationlink, Dahabshiil and Amal are the largest companies that have stepped into the breach left by the ban on Barakaat. These firms provide money-transfer services throughout Somalia. Annual remittances from Somalis abroad amount to some $800 million a year.

Addan said that Towfiq imposes extra vetting procedures. “We first check the credentials of both senders and receivers before allowing the transfer. We also avoid any suspicious transactions. These regulations enable us to maintain our services in Europe and North America.”

Asked how remittance firms send money to a country without a banking system, he answered, “Towfiq which specializes in general trading and telecommunications transfers the cash into the country through importing the required goods such as foodstuffs, fuel, medicines, spare parts and so on. We sell the goods for cash. This is how we receive money from our agents abroad.”

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On Monday, the representative of the UN secretary-general for Somalia, Winston Tubman, urged the Somali people to observe the International Day of Peace on Sept. 21 as part of a global effort to focus on peace.

“For Somalia, International Peace Day is an opportunity to reflect on the scourge of many years of civil conflict. The UN continues to work tirelessly through its political, developmental and humanitarian endeavors to reconcile the Somali people and to realize a permanent end to hostilities.” Sept. 21 will mark the first official “International Day of Peace” adopted last year by the UN General Assembly. The UN is appealing to all those involved in conflicts worldwide to accept a day of cease-fire and non-violence and to ensure that humanitarian assistance is provided to civilians caught in those conflicts.

19 September 2002