Paul Handley | Washington | Dec 31

AFP - US Somalis said Friday that a Minnesota bank group's decision to cut off their money transfer business would have a devastating impact on people in the war-torn African country.

Somalis were preparing to protest in Minneapolis, Minnesota after Sunrise Community Banks said they would shut down the accounts of money transfer shops handling Somalia-related business.

The move puts a stop to the main avenues for the largest US Somali community to send millions of dollars a year back to relatives in the eastern African country wrecked by years of war and famine.

But Sunrise said it needs the government to remove "legal obstacles" -- which Somalis say is the threat of prosecution if funds end up in the hands of designated terrorists -- before it can resume the service.

"The impact is really drastic. Almost all the Somalis here were relying on the Sunrise banks to send money to their loved ones in Somalia," said Saeed Fahia, executive director of the Confederation of Somali Community in Minnesota.

"Anybody who wants to do some work in Somalia has to use the 'hawala' (money transfer) system. People want to support schools, hospitals. There is no alternative."

Sunrise, an association of three banks, announced in early December that it would close the accounts of a dozen or so money transfer shops serving an estimated 30,000 Somalis in the region.