Prince William Reporter

A Virginia-based company specializing in money transfers to Somali refugee camps has been fined $72,500 by the state for incomplete financial records and misinformation during examinations. The firm's challenges in maintaining proper financial reporting, exacerbated by the pandemic, have raised questions about consumer safeguards and compliance with national security measures, prompting heightened scrutiny in an era of rapid global transactions, The Daily Progress reported.

“These days, money can go anywhere in an instant; it’s not like when I started out,” Bureau of Financial Institutions Commissioner Joe Face said.

The Bureau of Financial Institutions is scrutinizing money transfers to Somali refugee camps to ensure compliance, reflecting the evolving landscape of finance since Face's early career. In 2021, the Bureau targeted Hashi Money Wiring, a company sending money to Somalia and refugees, for examination to verify financial compliance and secure transactions, according to the report.

Patrick Hunt, a key financial analyst, discovered missing records and instances of misleading information during the examination, leading to a significant $72,500 fine recommended by the examiner. Despite the company's defense that it met financial requirements and posed no risks, the penalty was notably high. The heightened compliance checks were attributed to evolving financial landscapes and the imperative to safeguard consumers, as money can now move instantaneously across borders.

Hashi Money Wiring faced issues with late submission of quarterly reports and failure to post its general ledger throughout much of 2020, hindering the assessment of its financial state. The examination revealed a lack of critical data, making it impossible to gauge the company's financial stability. The Bureau sought detailed quarterly "call reports" to assess transaction volumes and the necessary investments to support its money transmission promises in compliance with state law. Hashi, which transferred millions annually with a significant portion going to Somali refugee camps, faced financial challenges including the closure of its own bank account due to risk reduction measures. While the company attributed its financial reporting problems to the COVID-19 pandemic, the State Corporation Commission ordered corrective measures, including a $500,000 surety bond to be maintained until the next examination in 2024.

The State Corporation Commission (SCC), established in 1902 as a constitutionally-organized independent department of Virginia's state government, holds regulatory authority over diverse business and economic matters, according to its website. With a unique structure encompassing administrative, legislative and judicial powers, SCC oversees utilities, insurance, financial institutions, securities and more. Comprising three commissioners and a dedicated staff, the SCC's recent enforcement actions include the $72,500 fine against Hashi Money Wiring, amid concerns over financial transparency and consumer protection, underlining the agency's crucial role in maintaining integrity within Virginia's economic landscape.