Seattle Mayor Ed Murray sent a proposed joint resolution to the Seattle City Council affirming the City’s support of Somali communities who seek to care for their families still living in Somalia and the Horn of Africa by way of remittances.
In February, the Merchants Bank of California closed down all accounts of Somali-American Money Transfer Operators due to the increasing difficulty of complying with federal money laundering and terrorism financing regulations.
“Shutting down these accounts has had a devastating effect on thousands of Somali-American families in this country and their loved ones back home,” Murray said. “I am committed to supporting Seattle’s Somali residents, the vast majority of whom are refugees providing critical financial assistance to family members in their home countries. It is my hope that the federal government will do the right thing and find a solution to this very serious problem.”
According to reports, more than 730,000 people in Somalia are dependent on financial assistance overseas. Funding from these accounts had provided basic needs such as food, water, shelter, and education. The effects of these account closures have been exacerbated due to Somali’s lack of a functioning commercial banking system.
The joint resolution calls for staff from the Seattle Office of Immigrant and Refugee Affairs (OIRA), the Office of Intergovernmental Relations, the City Attorney’s Office, and the Finance and Administrative Services Department to review options for state, city, or other local banks to continue transferring remittances.
“This is, first and foremost, a humanitarian issue we must resolve with urgency. I know many friends and families who send money back home and this is a lifeline. Our local political and regional leaders are collectively united on this issue and we stand with our strong community of East Africans and immigrants,” said Councilmember Bruce Harrell. “We need to think creatively and work with our credit unions on local options, and jointly pressure the federal government to act and make things normal again for these families.”
In February, Murray, Harrell and Councilmember Mike O’Brien sent a letter to U.S. Secretary of State John Kerry urging the U.S. Department of State to devise a strategy that would help local banks meet regulatory standards and allow financial aid to keep making its way to Somalia. So far, the federal government has taken no action to address the issue.
“Hard-working members of the local Somali community are supporting their families here in Seattle as well as loved ones back in Somalia by sending money back home,” O’Brien said. “We must find solutions to ensure there are safe, secure ways for these remittances to continue to flow from Seattle.”
Nearly 4,000 Somalis live in the city of Seattle and thousands more are estimated to live throughout King County. Seattle is home to one of the largest Somali communities in the United States.
