Illegal Money Transmitting—Serar Ahmed Abdullahi

A Somali who has become a naturalized citizen was indicted on charges that he illegally transmitted nearly US$1 million to banks in Switzerland and Minnesota.^[1] Between January 5, 2000 and January 14, 2003, Mr. Abdullahi, who ran an ethnic Somali grocery store in Kansas City, Missouri, allegedly made a total of approximately US$1,146,748.46 in deposits in various bank accounts.^[2] At the same time, Mr. Abdullahi received fees for the transfer of just over US$956,000 to locations outside of Missouri, including roughly US$347,000 to an account under the name “B.P. Shah” in Geneva, Switzerland.^[3]

Counts one and two of the indictment allege that Mr. Abdullahi illegally transmitted the money by means of operating a money transmitting business without a proper license; counts three through nineteen allege that Mr. Abdullahi evaded United States currency reporting requirements; and counts twenty through twenty-five allege that he falsified information in applications for food stamp benefits.^[4]

Unlicensed Money Transmitting Business
Operating an unlicensed money transmitting business, which is a crime under 18 U.S.C. § 1960, is something that we have previously discussed here.

Evasion of Currency Reporting Requirements
Under 31 U.S.C. 5324(a)(3), it is illegal for a person to structure any transaction with one or more domestic financial institutions for the purpose of evading the reporting requirements of sections 5313(a) or 5325 of Title 31.

Violating this section can be punished by a fine, imprisonment for up to five years, or both.^[5] However, if a person violates section 5324 while violating another law of the United States or as part of a pattern of any illegal activity involving more than US$100,000 in a 12-month period, he may be punished by having an enhanced fine, imprisonment for up to 10 years, or both.^[6]

False Information on Application
The indictment charges Mr. Abdullahi under 18 U.S.C. § 1001, which is the false statements statute, and which we have previously addressed here.

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[1] US Attorney’s Office, Press Release: Somalian Native Indicted for Transmitting $1 Million to Banks in Switzerland and Minnesota, Oct. 12, 2005, available here (PDF).
[2] Id.
[3] Id.
[4] Id.
[5] 31 U.S.C. § 5324(d)(1).
[6] Id. § 5324(d)(2).