WRITTEN QUESTION E-0608/02

by Erik Meijer (GUE/NGL)and Herman Schmid (GUE/NGL) to the Commission

(5 March 2002)

Subject: Halting remittances from the territory of the EU Member States to residents of the disintegrated State of Somalia on account of the possible presence of terrorists

1. Is the Commission aware that the Somalian bank El Barakat transfers money from small agencies in shops in EU Member States, on behalf of people of Somali origin residing here, to relatives living in extreme poverty in Somalia, which is divided among mutually opposed warlords?

2. Did any EU institution decide on or around 27 December 2001 that the customary payment transactions via El Barakat could no longer be performed?

3. Is there a link between the EU decision referred to in question 2 and United Nations Security Council resolution 1390, which was adopted shortly afterwards (on or around 16 January 2002)? Does each permanent member of the Security Council have the power to veto the worldwide lifting of the ban on doing business with organisations designated as terrorist?

4. Did the reason for the prevention of bank transfers via El Barakat lie in the bank's direct support for terrorist activities of the Al-Qaeda type? Do the EU institutions have any proof of this or do they have convincing evidence supplied by the United States or United Nations?

5. If payment transactions via El Barakat have been halted permanently, is the aim of this to completely isolate from the outside world the territory of the State of Somalia, which has long since disintegrated, to make it possible to cut off terrorist groups within that territory from foreign sources of funding?

6. Are there still any other practical ways in which people residing in the EU Member States can send money to relatives in Somalia, through channels other than El Barakat? If so, what?

7. Is the possibility of opening new channels for transferring money to Somalia being in any way prevented or classified as a criminal offence, particularly transfers to residents who are heavily dependent on such remittances for their survival?

8. How, and how soon, does the Commission expect normal payment transactions with Somalia to be resumed and what will it do to help bring about such a resumption?

Source: (inter alia) Netherlands Radio 1, VPRO, De Ochtenden, 15 February 2002

Answer given by Mr Nielson on behalf of the Commission

(25 April 2002)

1. The Commission is aware that the organisation Al-Barakhat used to operate in European countries and that its core activity was the transfer of funds from Somali individuals and other organisations between these countries and some regions of Somalia. Remittances play a significant role in the Somali economy and affect a considerable number of persons.

2. to 4. United Nations (UN) Security Council resolutions, in particular Resolutions 1333(2000) paragraph 8(c) and Resolution 1390(2002) paragraph 2(a), require all States to take a certain number of measures against individuals and entities directly or indirectly associated with Usama bin Laden and the Al Qaeda Organisation. For this purpose a specific list is maintained and updated by a Sanctions Committee of the UN Security Council. This Resolution of the UN Security Council and the implementing decisions of the Sanctions Committee are binding and mandatory as they are based on Article 41 of the UN Charter.

The list of individuals and entities provided by the UN Security Council is based on information provided by States. UN Security Council decisions on substantive matters require at the very least the approval of all permanent members, often referred to as the veto power.

To enforce the UN Security Council Resolution, the Community adopted Council Regulation (EC) No 467/2001 of 6 March 2001 prohibiting the export of certain goods and services to Afghanistan, strengthening the flight ban and extending the freeze of funds and other financial resources in respect of the Taliban of Afghanistan(1). Subsequently, the Commission adopted Regulation (EC) No 2199/2001 of 12 November 2001(2) amending Council regulation (EC) No 467/2001 based on the updated UN Security Council list(3) where Barakhat organisations, inter alia, were listed. Accordingly, it also ceased making payments in Somalia through the Barakhat organisation.

Resolution 1390(2002) amends and continues the financial restrictions of Resolution 1333(2000) and provides that the sanctions in relation to Afghanistan should be repealed. A Commission proposal to take the necessary measures was made on 6 March 2002(4).

5. to 7. No. The aim is to reinforce the fight against terrorism and more specifically its financing mechanisms. The financial restrictions imposed by Community Regulations target specific organisations and persons, not all remittances to Somalia.

Other organisations carrying out remittances from and to Somalia are still operating in the country, such as Amaala and Dahabshil that have partially filled the void left by Barakhat. Recently, a Union Bank of Somalia was created. Also, a considerable number of smaller remittance organisations have been created and/or are operating in Somalia on a more local basis. However, some rural Communities, mainly in Southern Somalia, still experience a lack of sufficient channels to receive remittances from families abroad.

8. The payment transaction situation is improving. Nevertheless, normal economic and financial relations with Somalia depend in the end on Somali political forces' and Somali civil society's determination to re-establish sustainable governance in the country in order to harmoniously participate in the international Community.

(1) OJ L 67, 9.3.2001.

(2) OJ L 295, 13.11.2001.

(3) AFG/163-SC/7206 of 9 November 2001.

(4) COM(2002) 117.