Al-Barakat - Repercussions Following September 11, 2001 Attacks

Repercussions Following September 11, 2001 Attacks

The effects of anti-terrorist financing measures of the US government and other participating countries were disastrous for al-Barakat – and for Somalia which has had no recognized government or functioning state apparatus, and no formal system of banking, since 1993. After the September 11, 2001 attacks the al-Barakat network came under attack since it was suspected that hawala brokers may have helped terrorist organizations transfer money to fund terrorist activities. In 2001, the United States shut down al-Barakat Bank's overseas money remittance channel, labeling the bank "the quartermasters of terror." Despite numerous investigations, nothing was found to link al-Barakat to terrorist activities as was outlined by the 9/11 Commission. By early 2003 only four criminal prosecutions had been filed, and none involved charges of aiding terrorists. The 9/11 Commission Report has since confirmed that the bulk of the funds used to finance the assault on the twin towers were not sent through the hawala system, but rather by inter-bank wire transfer to the SunTrust Bank in Florida. Nevertheless, the al-Barakat network suffered severely, and millions of Somalis are still cut off from funds transferred to their relatives that remain frozen pending conversion of the UN blacklisting.