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Adan Hassan, spokesman for the Somali American Moneywiring Association and a manager at Kaah Express, a Minnesota-based hawala with locations in six other states, said the hawalas are subject to federal and state regulations, and he understands the regulations are necessary for national security and the well-being of the community. The hawalas must comply in order to keep their licenses. Federal regulations require that hawalas ask for identification from anyone submitting over $3,000, Hassan said, though some companies require IDs for lower amounts as well. The hawalas collect the name, location, and phone number of the beneficiary, and the sender gives the hawala cash or a check or money order. The money is processed and the sender receives a receipt. The recipient must present an ID to pick up the money on the other end, Hassan said. Transfers to Somalia are not the only ones affected. Hassan said Kaah Express sends most of its transmissions to Kenya, which has the largest number of Somali refugees. Kaah Express also works with a well-established Ethiopian bank. He said those accounts are all affected, regardless of the destination of the money. Humanitarian aid in a region beset by war and famine could be harmed by the banking decision, said a statement from Oxfam American and the American Refugee Committee. The group said Somalia's famine this year would have been far worse without remittances from the Somali community abroad. "It is estimated that $100 million in remittances goes to Somalia from the U.S. every year. This is the worst time for this service to stop. Any gaps with remittance flows in the middle of the famine could be disastrous," Shannon Scribner, Oxfam America's Humanitarian Policy Manager, said. "The U.S. government should give assurances to the bank that there will be no legal ramifications of providing this service to Somalis in need." If the new banking rules are put in place, Somalis in Minnesota say they will find other ways to send money. One way is to send the remittances to another country, such as Kenya or Britain, and then have a third party pick up the money and re-wire it to Somalia. Ali, the Somali prime minister, said his government is working to make sure the link between American banks and the Somalia hawala system continues. "We have sent a memo to the U.S. authorities to call off that decision because that will cause Somalis to economical crisis," he said. "The monies sent from abroad are backbone for the lives of thousands."
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