Barclays closes money transfer accounts in Somalia, despite protests

Oct 03, 2013

Barclays Bank has effectively closed on Monday (September 30th) 250 money transfer businesses serving Somalia.

Barclays Bank has effectively closed on Monday (September 30th) 250 money transfer businesses serving Somalia.

However,
Dahabshil - the largest provider of cash transfers in Somalia - received an extension and has until October 16th to take its banking elsewhere, The Guardian reports.

Dahabshil applied to the high court for an interim injunction last week, saying that Barclays' termination of
its
account lacked "objective justification". It has found a new bank-
whose
name was not revealed - to make corporate and aid agency remittances to Somalia, but personal cash remittances have not yet been resolved.

Several Somali ministers voiced their concern in September over the effects of tightening regulations on the international banking system and Barclays' decision, as this could prevent the Somali Diaspora from supporting their families through remittances.

They called on Barclays and other international banks to maintain the current remittance system."We are deeply concerned
about
the situation of the money transfer business, which is the main source of income to millions of people and contributes a significant percentage to the regional economy," said Deputy Prime Minister Fowsiyo Yusuf Haji Aadan during a cabinet meeting, quoted by Sabahi newspaper. Overseas remittances account for up to half of the economy of Somalia and Somaliland.ADNFCR-2976-ID-801645224-ADNFCR