Al-Barakat
Encyclopedia
al-Barakat or al-Barakaat , which means "Blessings" in Arabic
, is a group of companies established in Somalia
in 1986. Al-Barakat has involved itself in the modern form of hawala
, an informal value transfer system
, and the remittance trade. By 2001, it was operating in 40 countries and was the country's largest private employer. Al-Barakat handled about $140 million USD a year from the Somali diaspora
, and also offered phone and internet services.
in 1991. It rose to prominence when hawala became the only way to transfer funds to Somalia, and remittances had become the lifeline of some of the nation's inhabitants. With no officially recognized private banking system, the remittance trade in Somalia came to be dominated by a single firm, al-Barakat.
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.
in the Guantanamo Bay detainment camp
s in Cuba
are held because Joint Task Force Guantanamo
(JTF-GTMO) intelligence analysts asserted they had some kind of connection to al-Barakat.
' list of terrorist organizations. The company had been on the list for the past eight years, and had had its bank account funds frozen. According to the Swedish Public Radio broadcaster SR
, the UN did not explain why it had elected to remove al-Barakat from its terror list. However, it has been suggested that the recent change in the European Union
's position regarding the many organizations "that have been too easily included in the UN terror list" might have influenced the UN's position. Al-Barakat is now also able again to access its bank account funds.
Arabic language
Arabic is a name applied to the descendants of the Classical Arabic language of the 6th century AD, used most prominently in the Quran, the Islamic Holy Book...
, is a group of companies established in Somalia
Somalia
Somalia , officially the Somali Republic and formerly known as the Somali Democratic Republic under Socialist rule, is a country located in the Horn of Africa. Since the outbreak of the Somali Civil War in 1991 there has been no central government control over most of the country's territory...
in 1986. Al-Barakat has involved itself in the modern form of hawala
Hawala
Hawala is an informal value transfer system based on the performance and honor of a huge network of money brokers, which are primarily located in the Middle East, North Africa, the Horn of Africa, and South Asia...
, an informal value transfer system
Informal value transfer system
An informal value transfer system refers to any system, mechanism, or network of people that receives money for the purpose of making the funds or an equivalent value payable to a third party in another geographic location, whether or not in the same form...
, and the remittance trade. By 2001, it was operating in 40 countries and was the country's largest private employer. Al-Barakat handled about $140 million USD a year from the Somali diaspora
Somali diaspora
The Somali diaspora refers to expatriate Somalis who reside in areas of the world that have traditionally not been inhabited by their ethnic group...
, and also offered phone and internet services.
History
Al-Barakat first began operations in 1986, before the outbreak of the Somali civil warSomali Civil War
The Somali Civil War is an ongoing civil war taking place in Somalia. The conflict, which began in 1991, has caused destabilisation throughout the country, with the current phase of the conflict seeing the Somali government losing substantial control of the state to rebel forces...
in 1991. It rose to prominence when hawala became the only way to transfer funds to Somalia, and remittances had become the lifeline of some of the nation's inhabitants. With no officially recognized private banking system, the remittance trade in Somalia came to be dominated by a single firm, al-Barakat.
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 attacksSeptember 11, 2001 attacks
The September 11 attacks The September 11 attacks The September 11 attacks (also referred to as September 11, September 11th or 9/119/11 is pronounced "nine eleven". The slash is not part of the pronunciation...
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
9/11 Commission
The National Commission on Terrorist Attacks Upon the United States, also known as the 9/11 Commission, was set up on November 27, 2002, "to prepare a full and complete account of the circumstances surrounding the September 11, 2001 attacks", including preparedness for and the immediate response to...
. By early 2003 only four criminal prosecutions had been filed, and none involved charges of aiding terrorists. The 9/11 Commission Report
9/11 Commission Report
The 9/11 Commission Report, formally named Final Report of the National Commission on Terrorist Attacks Upon the United States, is the official report of the events leading up to the September 11, 2001 attacks...
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
Florida
Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it...
. 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.
Guantanamo detentions
Several of the captives held in extrajudicial detentionExtrajudicial detention
Arbitrary or extrajudicial detention is the detention of individuals by a state, without ever laying formal charges against them.Although it has a long history of legitimate use in wartime , detention without charge, sometimes in secret, has been one of the hallmarks of totalitarian states...
in the Guantanamo Bay detainment camp
Guantanamo Bay detainment camp
The Guantanamo Bay detention camp is a detainment and interrogation facility of the United States located within Guantanamo Bay Naval Base, Cuba. The facility was established in 2002 by the Bush Administration to hold detainees from the war in Afghanistan and later Iraq...
s in Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
are held because Joint Task Force Guantanamo
Joint Task Force Guantanamo
Joint Task Force Guantanamo is a U.S. military joint task force based at Guantanamo Bay Naval Base, Guantánamo Bay, Cuba on the southeastern end of the island. JTF-GTMO falls under US Southern Command...
(JTF-GTMO) intelligence analysts asserted they had some kind of connection to al-Barakat.
| id | name | notes |
| 84 | Ilkham Turdbyavich Batayev Ilkham Turdbyavich Batayev Ilkham Turdbyavich Batayev or Elham Battayav was held in extrajudicial detention in the United States Guantanamo Bay detainment camps, in Cuba.His Guantanamo Internment Serial Number was 84... |
|
| 567 | Mohammed Sulaymon Barre Mohammed Sulaymon Barre Mohamed Saleban Bare is a Somali refugee who was held in extrajudicial detention in the United States Guantanamo Bay detention camps, in Cuba.... |
Mohammed Sulaymon Barre Mohamed Saleban Bare is a Somali refugee who was held in extrajudicial detention in the United States Guantanamo Bay detention camps, in Cuba.... was a Somali Somali people Somalis are an ethnic group located in the Horn of Africa, also known as the Somali Peninsula. The overwhelming majority of Somalis speak the Somali language, which is part of the Cushitic branch of the Afro-Asiatic language family... , living in a Pakistani refugee camp, who worked for a Somalia hawala named Dahabshiil Dahabshiil Dahabshiil is an international funds transfer company headquartered in Dubai, United Arab Emirates. Formed in the early 1970s, the firm operates from over 24,000 outlets and employs more than 2,000 people across 144 countries. It provides a broad range of financial services to international... , that JTF-GTMO analysts asserted had ties to al-Barakat. Al-Qaeda Al-Qaeda is a global broad-based militant Islamist terrorist organization founded by Osama bin Laden sometime between August 1988 and late 1989. It operates as a network comprising both a multinational, stateless army and a radical Sunni Muslim movement calling for global Jihad... and al-Barakat, and an alleged connection between al-Barakat and Barre's hawala [Dahabshiil]], was sufficient justification for his continued detention. The connection JTF-GTMO analysts asserted was that al-Barakat and Dahabshiil had shared customers and resources. Barre explained that the two hawalas were competitors, and that when al-Barakat was suspended, its former customers shifted their business to Dahabshiil. Administrative Review Board The Administrative Review Board is a United States military body that conducts an annual review of the suspects held by the United States in Camp Delta in the United States Navy base at Guantanamo Bay, Cuba.... hearing. on September 30, 2005. |
Removal from the UN's terror list
In October 2009, the Swedish branch of the Somali bank-network al-Barakaat was removed from the United NationsUnited Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...
' list of terrorist organizations. The company had been on the list for the past eight years, and had had its bank account funds frozen. According to the Swedish Public Radio broadcaster SR
Sveriges Radio
Sveriges Radio AB – Swedish Radio Ltd – is Sweden's national publicly funded radio broadcaster. The Swedish public-broadcasting system is in many respects modelled after the one used in the United Kingdom, and Sveriges Radio - like Sveriges Television - shares many characteristics with...
, the UN did not explain why it had elected to remove al-Barakat from its terror list. However, it has been suggested that the recent change in the European Union
European Union
The European Union is an economic and political union of 27 independent member states which are located primarily in Europe. The EU traces its origins from the European Coal and Steel Community and the European Economic Community , formed by six countries in 1958...
's position regarding the many organizations "that have been too easily included in the UN terror list" might have influenced the UN's position. Al-Barakat is now also able again to access its bank account funds.