On a routine basis, Somalis living abroad send money to their relatives back in Somalia. Those funds, called remittances, make up a significant portion of the country’s GDP.
However, Somalia does not have a formal banking system, so the remittance process relies on a complicated network of banks, independent money transfer organizations, and people on the ground in Somalia.
Somalis living in Minnesota have sent unknown millions to Somalia through the remittance process. During her time in the U.S. Senate, DFL Sen. Amy Klobuchar has supported efforts to improve the Somali remittance process.
On Saturday, an X user called LeftistsofMN posted a 2017 video of Klobuchar speaking on the topic. In that video, Klobuchar is seen speaking to a large crowd in what appears to be a hotel ballroom. Many people in the crowd were waving American and Somali flags.
During her remarks, Klobuchar spoke about multiple ways she has advocated for Somalis. One of those topics was remittances.
“Now, we know you do your part, and that’s why Congressman [Keith] Ellison and Senator [Al] Franken and I work so hard to reduce the redundant regulations on remittances to Somalia, lessening the burdens for banks. We have more to do, but we will continue to fight for you,” Klobuchar said.
Klobuchar was referring to the Money Remittances Improvement Act of 2014, a law which changed how money transfer organizations that facilitate remittances are regulated.
Advocates of the law, which included former Republican Congressman Erik Paulsen and then-DFL Congressman Keith Ellison, said the law streamlined the remittance process, provided more oversight of money transfer organizations, and reduced regulatory burdens.
Klobuchar’s 2017 speech was recorded and uploaded online by Somali TV of Minnesota, a news outlet that covers Somali issues. Klobuchar is now the DFL nominee for governor of Minnesota. She faces Republican Lisa Demuth in the general election.
That speech, and the underlying legislation Klobuchar supported, was just one instance of the senator’s advocacy for an improved Somali remittance process.
In 2012, Ellison reported that he and Klobuchar took part in a meeting with a U.S. Treasury official to ensure remittances could get to Somalia. That meeting took place after bank accounts for money transfer businesses were shut off.
Klobuchar also lobbied the Obama administration in 2015 to establish a “sustainable, long-term” way for remittances to be transferred via “secure and transparent channels.”
In a public statement to that end, Klobuchar said “Somali-Americans in Minnesota are a vital financial lifeline for their relatives in Somalia, and we need to ensure a secure, legal and transparent way for them to send remittances.”
However, remittances are controversial. Some, like Klobuchar, have said remittances provide the Somali people with a necessary lifeline, prevent terrorists from getting a further grasp on Somalia, and stave off even worse conditions in the country.
Meanwhile, concerns have long existed that al-Shabaab, an Islamic terrorist group linked to al-Qaida, uses the Somali remittance system to fund its operations.
Further, the Somali community in Minnesota has come under heavy scrutiny in recent years for its ties to fraud schemes that stole taxpayer dollars. Earlier this year, the U.S. Treasury Department said some of those stolen tax dollars were sent to Somalia.
Alpha News asked Klobuchar’s campaign about the 2017 video and inquired whether her position on remittances has changed in light of the fraud that has occurred. Her campaign was also asked if she has concerns about remittances funding overseas terrorists.
A Klobuchar campaign spokesperson did not answer those questions, but did provide a statement about the 2014 remittance law.
“As Alpha News has previously reported, Republicans like Trump Cabinet Secretary Sean Duffy and then Rep. Erik Paulsen cosponsored this bill, and Rep. Tom Emmer wrote a letter supporting remittances while serving as co-chair of the Congressional Somalia Caucus,” the spokesperson said.
Luke Sprinkel
Luke Sprinkel previously worked as a Legislative Assistant at the Minnesota House of Representatives. He grew up as a Missionary Kid (MK) living in England, Thailand, Tanzania, and the Middle East. Luke graduated from Regent University in 2018.
