The Somali money transmitter pipeline

The Somali money transmitter pipeline - American Thinker

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Alternative media outlets have spotlighted the Somalia money laundering, tax evasion, and financing of illicit activities that mainstream news sources have ignored. Their investigations reveal elaborate scams within Minnesota's Somali community, spanning child nutrition, autism therapy, housing stabilization, and child-care programs, and exposing the loss of billions in taxpayer dollars.

An often-overlooked aspect of racketeering involves Hawala dealers, a money-transfer system that allows Somalis to send funds locally and internationally. These dealers also offer money orders, debit card issuance, and check cashing, providing anonymity and requiring minimal documentation. Such money transmitters create opportunities for fraud and money laundering.

When the first indictments were announced in 2022 for the Somali Feed Our Future nonprofit, I thoroughly analyzed the audited financial statements and 990 tax returns. After studying material for irregularities, I filed a complaint with the Minnesota Accountancy Board against Charles Amevo (unindicted co-conspirator) for multiple violations of the AICPA professional and audit standards. The complaint also mentioned that Amevo had failed to conduct a required Single Audit of the federal grants.

After the convictions were announced last June, the Minnesota Accountancy Board issued its decision regarding my complaint against Amevo. Amevo lost his CPA license, was fined $20,000, and had to inform management that the audit results for his six other clients, Somali money transfer businesses, were no longer valid.

The six companies are registered with the Nationwide Multistate Licensing System and Registry (NMLS). However, Section 7.02 requires money transmitters to maintain current audited financial statements. Since the audit opinions have been withdrawn, the six entities are now noncompliant and in violation of their surety bond requirements. Below is a summary of the six money transfer companies, including links to their NMLS registrations and websites. Note how they rebrand their businesses as a possible evasion tactic.

I submitted a noncompliance complaint to the Minnesota Commerce Department by email, providing a receipt and certified mail confirmation. The department has neither taken action nor issued a cease-and-desist order against the six money transmitters, despite the need for a thorough audit, a clean opinion, and proof of surety coverage. This inaction highlights broader concerns about state oversight, as seen during the welfare fraud scandals, where licensed transmitters were not scrutinized for potential money laundering.

The FBI Minnesota task force should prioritize investigations into Somali Money Transmitters to trace and recover stolen funds, prevent fraud and terrorism financing, and identify the broader racketeering network. The FBI should also consider establishing a national task force to address this issue nationwide.

Bob Bishop is a forensic investigator and retired CPA.

Image: AMSOM Public Information