Somalia: High Court allows Dahabshiil to keep providing money transfer services... For now
The Somalia High Court has stopped Barclays Bank from terminating the banking services it provides to Dahabshiil.The money transfer operator's banking arrangements with Barclays are thus preserved until the conclusion of a full trial, which is expected to take place in 2014 if no solution is found earlier.
Chief Executive of Dahabshiil Abdirashid Duale
said in a press release: "The Somali private sector, including Dahabshiil, is one of the few Somali success stories, that has helped keep the country afloat during more than decades of conflict, famine and other hardships. We urge the British government and others to build on this success."
Barclays Bank had effectively stopped providing services on September 30th to 250 money transfer businesses serving Somalia.
applied to the high court for an interim injunction on October 16th, stating that Barclays' termination of its account lacked "objective justification".
Several Somali ministers voiced their concern in September over the effects of Barclays' decision, as this could prevent the Somali Diaspora from supporting their families through remittances.
They stressed that money transfer business is the main source of income to millions of people and contributes a significant percentage to the regional economy.