Kenya suspend licences of 13 Somali remittance firms

Apr 13, 2015

The government is cracking down on the financiers of terrorist attacks.

Somalia’s central bank governor Bashir Issa Ali has announced that the Kenyan government has suspended the licences of 13 Somali remittance firms.

The move comes a week after al shabaab militants massacred 148 students at a university in the Kenyan town of Garrisa.

Kenya’s President Uhuru Kenyatta said after the attack that his
government would crack down on the planners and financiers of such attacks.

Ventures Africa also reports that nearly 100 bank accounts linked to financing terrorism have been frozen.

Several other nations have already closed the bank accounts of Somali money transfer companies over concerns that the money transmission sector was at risk of being used for money laundering and terrorist funding, and did not meet new regulatory requirements.

Somalia's economy has for many years relied on remittances from migrants.The UN estimates that 40 per cent of the Somali population relies on such remittances.