FBI In Minneapolis Raid Qaran Express, Aaran Financial in M

Last update: April 8, 2009 - 10:04 PM
By LORA PABST and RICHARD MERYHEW, Star Tribune staff writers

Federal agents raided three Minneapolis money transfer businesses that mainly serve the Somali community Wednesday, seeking records of financial transactions to several African and Middle East countries.

E.K. Wilson, a special agent for the FBI in Minneapolis, confirmed that agents searched the businesses on the city's south side to track money transactions, but wouldn't disclose any further details.

The businesses are Qaran Express and Aaran Financial, both in the Karmel Mall, near W. Lake Street and Pillsbury Avenue S., and North American Money Transfer Inc., also known as Mustaqbal Express, at the Village Market Mall, at E. 24th Street and Chicago Avenue S.

While it's not clear that the raid was directly connected to a continuing federal investigation into the possible link between terrorist groups and the disappearances of seven to 20 young Somali men in the Twin Cities over the past two years, it appears to be part of an effort since the Sept. 11, 2001, terrorist attacks to crack down on financial connections to terrorist networks and operations overseas.

Two months after the attacks on the Pentagon and World Trade Center, federal agents froze the assets of five Somali-related operations at three locations in Minneapolis because of suspicions that they were laundering money to Osama bin Laden or his terrorist organization Al-Qaida. In the end, none was the subject of federal criminal indictments.

Somali residents had bemoaned the shutdowns, saying that the businesses were their only way of getting money to impoverished relatives in Somalia.
"We've been through this before," said Omar Jamal, executive director of the Somali Justice Advocacy Center in St. Paul. "What happened today is the beginning of a long story, so we don't want the community to panic."


The search warrant executed at North American Money Transfer

• originated in the Eastern District of Missouri and was filed under seal on April 3.
• It states that FBI agents were seeking any documentation regarding money sent to "any person, business or entity where such transfers were destined for locations in: Somalia, Eritrea, Kenya, Sudan, Ethiopia, Djibouti, and United Arab Emirates" between January 2007 and the present.
• North American Money Transfer is based in Atlanta and has locations in Washington, Arizona, Minnesota, Missouri, Tennessee, Ohio, North Carolina and Georgia.
• Its Mustaqbal Express location in the Village Market Mall is one of five Minnesota branches and it serves as the central headquarters for money sent from the other locations across the country.

According to the company's website, it has been in business since 1999. "With our partnership of African Horn, one of the largest network in money transfer services, we are able to deliver your money to regions around the world where traditional financial institutions do not exist," says the website.

Abdirahman Omar, the general manager of Mustaqbal Express, was opening up shop at 9:30 a.m. Wednesday when about 15 agents arrived. They spent about 5 hours combing through records and interviewing employees, Omar said.

"They were collecting every receipt, money wires and banking statements," Omar said. "It's been confusion and nervousness all day."

Omar said his location also houses a computer sales and repair shop and an income tax service. He's not sure why his location was targeted, but recalled a raid at the company's branch in St. Louis about a year ago.

"The community knows we don't have any connection to any political group," Omar said. "We help our community to support their families."

After the raid, Omar said he was focused on getting his business back to normal and reassuring customers that he was still open. "This creates a bad image," he said. "I don't want my customers to fear."

An employee at Aaran Financial's Village Market location, which was not searched by authorities, said the company also has branches in other parts of the country, including Nebraska, Maine, Washington and Arizona.
Missing men.......

.....Over the past few months, more than a dozen people within the Somali community have been subpoenaed to testify before a grand jury. Dozens more have been questioned.

On Wednesday, the Minnesota chapter of the Council on American-Islamic Relations (CAIR) announced that it had sent letters to area high schools, colleges and universities asking that they provide legal support and assistance to Somali students who have been questioned on campus by FBI officials.

In a statement, CAIR said Somali students have reported that federal agents have approached them in libraries and while they are walking to class. Some have said they have received phone calls from FBI officials instructing them to leave class to talk.

In one instance, CAIR said, a Somali student leader at the University of Minnesota was asked by a campus police officer to attend a meeting with FBI officials "under the guise of outreach."

CAIR said the FBI asked the student questions about the missing Somali men without a lawyer being present.

The FBI's Wilson said Wednesday that all of its interviews have been voluntary.
"Under no circumstance has any conversation we've had with anybody or any interview we've done been coerced or forced," Wilson said. "All conversations we have had have been voluntary.

That's the way we conduct our interviews and that's the way we'll continue to conduct them."

The Rest @ StarTribune

The Somali Money Transmitters Association (SOMTA)

I found this in google's Cache, and wanted to presearve the data before it disapears. Here is another website under development here, but I wanted to preserve the Officers names, for the record.

-Shimron

SOMTA

Somali is a poor country that has suffered massive internal conflict. There is no proper government and no banking system. Many Somalis live in other countries and send money home to support their families. Remittance companies provide a service that enables them to do so efficiently and economically. However, there is concern that the mechanisms used for this purpose can also be used for other, illegal, purposes.

Six leading Somalia money transmitters have therefore entered into a Memorandum of Understanding. The key features of this are - The adoption of strict membership requirements established an association to help ensure that the industry operates to the highest possible standards. They have been supported by the United Nations Development Program, which recognises the important role that remittance companies play in alleviating poverty and promoting economic development.

The Somali Money Transmitters Association (SOMTA) has the following objective:
To secure the future of the Somali remittance industry through a safe and healthy sector comprising of fully compliant money transmitters who are able to operate and compete globally, and to promote the image of the industry.

The members have entered into a Memorandum of Understanding:
Its based on compliance with registration and licensing requirements in the countries in which they operate and observation of legal requirements in respect of money laundering.
The establishment of compliance standards and an independent compliance audit that companies will have to pass in order to retain membership.

SOMTA has established rules governing membership and compliance arrangements. Other companies willing to comply with the rules are welcome to join.

SOMTA takes the form of a company limited by guarantee, registered in the UK. It is governed by a Council comprising of -

Council Members

• Ali Yassin Farah (Amal Express)
• Mr. Mustafa I. Said (Dahabshiil)
• Mr. Mohamed Ahmed Kadiye (Qaran Express)
• Ahmed Salad Waranle (Al-Mustaqbal Express)

Adminstration Group

• Mohamed Djirdeh Hussein Chairman and Executive Director of The Council
• Sh. Ciise Ali Wardere Vice Chairman
• Cumar Cali Cabdallah Adminstration Assistant

Membership

Only corporate bodies may be become members. A company applying to be a member must meet the following conditions -

• The member itself and the persons it entrusts with the tasks of management and administration for it in the domain of money transmission business must enjoy a good reputation with regard to their activity as money transmitters.
• It and its agents must be registered or have a valid licence to conduct business as a money transmitter in all jurisdictions where they operate that have such requirements.
• It must not use correspondents that are not registered or do not have licences in jurisdictions where this is required.
• It must have a viable, written and verifiable compliance handbook and programme that meets requirements of all the countries they operate in.
• It must operate in compliance with all applicable legal and regulatory requirements, and cooperate with law enforcement agencies when called upon.
• It must use money transfer technology and procedures and controls that effectively protect the operator and its agents from money launderers and financiers of terrorism.
• Members must use technology, systems and procedures that have been approved for the purpose by the Council.
  

Application for membership

• The Council may stipulate the manner in which applications may be made.
• An application must contain a written declaration that the applicant agrees unreservedly to comply with the Articles of Association, bye laws and rules and regulations of the Association.
• An applicant for membership shall provide with its application documentation providing information on its organisational structure and business activity. At a minimum, this shall include:
  Registered company name;
  Particulars of its corporate objectives and activities;
  A copy of its memorandum and articles of association or equivalent documents;
  Full contact details of places of business (address, telephone number, email address) and money transmitter networks, including details of all agents;
• The names of the proprietor or beneficial owners, the members of the management and authorised signatories, together with their respective shareholdings; Information on membership of trade associations;
• Details of licences or registration for all jurisdictions in which the member operates.
  The Council shall accept an application if it satisfied itself that the applicant meets the requirements of these Rules. Otherwise, the application shall be rejected.
• If the Council rejects the application, the applicant may appeal to an independent arbitrator as provided for in paragraph 18 of these Rules.

Compliance audits

• The Council shall make Rules governing compliance audits.
• All full members shall have a satisfactory compliance audit not later than 31 October 2006. After 31 October 2006 an applicant for membership must have had a satisfactory compliance audit.
• Members will be required to have a full compliance audit every year.
  A member that fails to have a satisfactory compliance audit in accordance with the Rules made by the Council shall automatically cease to be a member.

Standards for remaining a member

• Members must at all times satisfy and comply with the membership standards as stipulated by the Council.
• A member falling behind more than 30 days in their dues shall lose their membership. Should the member be reinstated within 12 months of such a lapse, the intervening months must be paid up.
• The Executive Director shall periodically check the information available from public sources to ascertain whether members continue to satisfy the conditions for membership.

Expulsion from membership or imposition of conditions

• The Council may expel a company from membership if it fails to comply with the Articles of Association or rules, regulations or bye laws made by the Council.
• The Council will notify a member of any proposal to expel it and the reasons for doing so and shall invite the member to make representation to the Council at the meeting when the expulsion is considered.
• The Council, as an alternative to expulsion, may impose conditions which a member must meet in order to retain membership.
• If the Council resolves to expel a member or to impose conditions which must be met in order to retain membership, the member may appeal to an arbitrator as provided for in paragraph 18 of these rules.

Arbitration

• The Council shall appoint an independent arbitrator who will be empowered to hear appeals against decisions of the Council on membership, expulsion or the imposition of conditions on membership.
• The decision of the Arbitrator will be binding on the Association and the company.

Composition of the Council

• The Council may determine its size.
• The Council may determine its quorum subject to this being no fewer than half the members of the Council.
• The founder members of the Association and any other members paying the maximum subscription shall each be entitled to nominate a member of the Council.
• The Council may co-opt additional members of the Council.
• The Council shall appoint a Chairman from among its members.

Powers of the Council

• The Council shall decide on all matters which are not wholly reserved to the general meeting of the Association.
• The Council may delegate any of its powers to another committee or to an individual.
  The Council shall, where necessary, issue rules laying down the powers of the other committees and organisational units.
• The duties of the Council include, in particular:
  laying down, coordinating and supervising the various functions;
  issuing and amending the Rules; formulating compliance, training and development plans and arranging for their implementation;
• Deciding on the appointment of auditors for verifying compliance with the membership requirements;
• Taking decisions to accept or to expel members or to impose conditions on membership;
• Appointing and terminating the contract of the Executive Director and any other staff;
  appointing the members of committees;
• Selecting and appointing the auditor to the Association;
  managing the assets of the association;
• Drawing up the annual budget at the proposal of the Executive Director and fixing the membership subscription;
• Preparing and presenting motions to be put to a general meeting.
• The Council shall also determine which persons are authorised to represent the Association and the manner in which the legally binding signature of the Association is to be exercised.
  The Council shall determine when and where its meetings shall be held, including holding meetings by electronic means.
  

Executive Director

• The Council shall appoint an Executive Director, to be responsible for the management of the Association, and shall determine the terms and conditions of the appointment. The Council may delegate any of its functions to the Executive Director.

Associates

• The Council may make rules allowing companies and other organisations that do not qualify for full membership to become associates of the Association, and to determine the fees to be paid and the rights and obligations of associates.
• An associate will have no membership rights and may not describe itself as a member of the Association.

Meetings of members

• The Association shall hold an annual general meeting not later than six months after the end of each financial year.
• At least one third of the members of the Association, or the Council, may at any time require the Executive Director to convene a general meeting.
• In convening such a meeting the Executive Director shall give not less than 21 days notice to members of the business to be transacted.
  At general meetings of the Association each member shall have one vote for each $1,000 of subscription income. [interesting-the richest members control the organization-Shimron]
• The Council shall present an annual report of its activities to the annual meeting.

A meeting of members shall have the following powers -

• To expel a member for non compliance with these Rules where the Council has failed to act of a recommendation of the Executive Director to do so.
• To remove a member of the Council.
  To amend these Rules and any other rules, regulations or bye laws made by the Council.