You have commented 339 times on Rantburg.

Your Name
Your e-mail (optional)
Website (optional)
My Original Nic        Pic-a-Nic        Sorry. Comments have been closed on this article.
Bold Italic Underline Strike Bullet Blockquote Small Big Link Squish Foto Photo
Submit your comments on this article
Africa Horn
Somali remittances granted reprieve
2013-11-07
Somali money transfer service Dahabshiil has won an injunction preventing Barclays from cutting its banking services. The injunction means customers will be able to transfer money through Dahabshiil for the foreseeable future.

Barclays had planned to cut off services to the company amid proper concerns over money laundering.

Dahabshiil is the largest provider of remittance services to the 100,000 Somalis living in the UK. They are believed to send back millions of pounds every year to friends and relatives in Somalia - a vital source of income for the impoverished country.

"The Court handed down its judgment, granting an interim injunction which has the effect of preserving Dahabshiil's banking arrangements with Barclays until the conclusion of a full trial," a Dahabshiil statement read.

"This is not just a victory for Dahabshiil. It is a victory for the millions of Somalis and other Africans, many of whose livelihoods depend on our services."

But the charity Oxfam warned that the ruling was only temporary.
Translation: we westerners have to give the poor Somalis more money. At least we can transfer it by wire this way...
"The ruling provides a small window of opportunity for Somalis living in the UK to send money home to loved ones in one of the poorest countries in the world," it said. "However, this does not solve the problem - a long-term fix is needed to safeguard hundreds of thousands of people relying on the money for food, medicines and education."

The charity's call for a permanent solution was echoed by Somalia's Prime Minister Abdi Farah Shirdon, who urged: "Governments, the money remittance sector and all key stakeholders must now work together to find a permanent legitimate and transparent solution that keeps open this vital lifeline."
How about instead you shoot all the Shaboobs, disarm the pirates and the petty tribal chiefs, and run a country that your citizens won't run away from?
Barclays had provided Dahabshiil with bank account services. But it expressed concern that money transfer services like Dahabshiil could be used for money laundering or even the funding of terrorism.

Barclays announced plans to close the accounts of several money transfer companies, including Dahabshiil, in May, but Dahabshiil sought an injunction preventing Barclays from closing its account, on the grounds that it was abusing its dominant position.

Barclays is the last major UK bank that still provides money transfer services to Somalia.
So how did the other banks get away with closing off transfer services to Somalia? Seems a bit unfair to leave Barclays holding the bag...
Barclays argued that some money service businesses "don't have the necessary checks in place to spot criminal activity with the degree of confidence required by the regulatory environment under which Barclays operates".

The withdrawal of Barclays services from Dahabshiil and similar money transfer services would have had a dramatic effect on the flow of remittances from the UK to Somalia. Remittances from the UK to Somalia total more than £100m a year, according to Oxfam, and campaigners say they provide a lifeline to Somali families with no other source of income and no access to conventional banking services.
Posted by:Steve White

00:00