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Minnesota investigation: The shadowy money system Somalis rely on — and terrorists can exploit [FOX News]

Associated Banc-Corp (ASB) 
NASDAQ:AMEX Investor Relations: investor.associatedbank.com
Company Research Source: FOX News
MINNEAPOLIS, Minn. – The massive and sprawling $1 billion welfare-fraud schemes engulfing Minnesota are now casting fresh scrutiny on an old, opaque money-transfer network used by Somali Americans to send remittances back to their loved ones and friends — a system U.S. officials have warned can be siphoned or taxed by the terrorist group al-Shabaab. Known as hawala, the centuries-old system moves money without banks, wiring infrastructure or standard documentation, yet it remains a lifeline for families in Somalia, where a national banking system barely exists. The system works by having a sender give money to an agent in the United States, who then instructs a partner in Somalia to pay the recipient directly, with no money ever physically crossing borders. Hawala functions as an alternative remittance system, relying on trusted agents rather than banks. It is fast, inexpensive and reaches remote regions of Somalia where no formal banking system exists. For many Somali Minnesotan Show less Read more
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