Since Barclays announced in May 2013 that it intended to close the bank accounts of all but 19 of its 165 clients in the remittance transfer business, there has been significant “behind the scenes” political wrangling and negotiation.
UK International Development Secretary Justine Greening described the issue as:
“one of the most important things I’ve dealt with in my political career”.
With no formal banking system, money transfer operators are a
financial lifeline for the Somali regions.
An injunction prohibiting Barclays from closing the accounts of the largest Somali money transfer operator means it can continue operations for the time being.
The Department for International Development has run a series of private meetings and consultations with the aim of establishing a
“safer corridor” for remittances to Somalia, together with existing money transfer operators
– within a year.
Meanwhile,
the $1.2 billion annual remittance flow to the region is under threat.A sustainable solution will require political will at the highest level together with an appreciation of the unique nature of the Somali financial market.For the full article, visit our blog.
This Wednesday, Kevin Brennan, MP for Cardiff West, will lead a Westminster Hall debate on 'Government steps to support money transfer accounts and the remittance sector'. This week's session follows on from a July 2013 debate led by Rushanara Ali MP, the text of which can be found
here.
The debate starts at 9:30am and can be watched online live here.
Last July, Edward Paice talked to Abdirashid Duale, chief executive of Dahabshiil, the largest money transfer business in the Horn of Africa, about the crucial importance of remittances to the Somali region and the potential impact if money transfers are reduced.
You can read the interview here.
In addition to remittances, we are also focusing on tax and urban issues in the coming months, please visit our website for further information..png)
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