U.S. and Allies Crack Down on 2 Money Transmitters

On November 7, 201, the U.S. announced action to block the assets of 62 organizations and individuals associated with Al Barakaat and Al Taqwa, two investment and money movement networks allegedly associated with transnational terrorist activities. Al Barakaat and Al Taqwa do business in over 40 countries including the U.S. The actions were coordinated with law enforcement authorities of other countries. U.S. law enforcement authorities closed U.S. offices of Al Barakaat in four states. Simultaneously, European allies, including Italy and Liechtenstein, have taken enforcement action against. On November 16, 2001, as a result of the enforcement actions against Al Barakaat, Concern Communications, a joint venture between AT &T and British Telecom, cut off its international gateway, forcing Al Barakaat to suspend its international telecommunications services. Naill Hickey, spokesman for the Atlanta-based Concert, explained that his company terminated its business with Al Barkatt and it searching for alternative carrier rotes to Somalia. The enforcement action has brought a remittance crisis to Somalia. Foreign remittances are responsible for much of the income of Somalia.