Beatty Leads Discussions on Minority Inclusion and Somali Remittances Crisis at World Bank

Beatty Leads Discussions on Minority Inclusion and Somali Remittances Crisis at World Bank

WASHINGTON, DC – During today's Congressional Black Caucus delegation visit to the World Bank, U.S. Congresswoman Joyce Beatty (OH-03) led discussions with Bank leadership to address issues of minority inclusion and to develop solutions to the Somali remittances crisis.

"The Bank's leadership is aware of the remittances crisis and the complexity of the issue. We have agreed to follow up further and to work with community leaders in my Congressional District to provide outreach," said Beatty. "On the issue of minority inclusion, I received positive responses when challenging Bank leadership to recruit more African Americans in senior positions. Today was informative and hopefully the beginning of new partnerships."

The Somali Diaspora sends $1.6 billion to loved ones in Somalia each year. These remittances from around the world account for up to 40 percent of Somalia's gross domestic product – exceeding the value of humanitarian aid, development aid, and foreign direct investment combined. The U.S. government has become increasingly concerned that some of the remittances are going to terror groups and has imposed stricter controls on money transfers to Somalia. As a result, banks have closed the accounts of money services businesses (or MSBs) serving Somalia and other high-risk countries in fear of potential violating sanctions and incurring multibillion-dollar fines should the funds fall into the wrong hands. The unwillingness of banks to work with MSBs in transmitting money to Somalia continues to worsen the humanitarian situation in Somalia, as one out of three Somalis say they would not be able to afford food, school, or basic healthcare without these payments, according to the Global Center on Cooperative Security.

A member of the exclusive House Committee on Financial Services, Beatty is a leader in finding solutions to the crisis. On February 26, 2015, Beatty and other Members of Congress, met with representatives from the Federal Reserve, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Commission, the National Credit Union Administration, the Department of State, the Department of Treasury, the Financial Crimes Enforcement Network, and the Consumer Financial Protection Bureau to discuss solutions to the remittances crisis facing Somali. On June 10, 2015, in a meeting with Congressional leadership, officials from the U.S. Treasury department, Somali officials, and Somali Prime Minister Omar Abdirsahid Ali Sharmake, Beatty called for a resolution to the remittances crisis. On October 14, 2015, Beatty held a Community Conversation in the Third Congressional District, where many Somali ex-patriots reside, and discussed the remittances crisis with members of the Somali Community.

During today's meeting Beatty highlighted the recurring allegations of discrimination and lack of career advancement for minorities of African descent in the World Bank's professional staff. Beatty pressed the Bank leadership to do more to expand diversity among staff and leadership. Beatty is a strong proponent of the Offices of Minority and Women Inclusion (OMWI) at all financial federal regulators, pushing for standards that include (1) mandatory diversity assessments and disclosure from all regulated entities; and (2) increasing internal agency diversity.

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