Somalia, remittances and unintended consequences: in conversation with Abdirashid Duale – by Edward Paice

In May 2013, Barclays informed three-quarters of its clients in the money services business that it was closing their bank accounts. These included many handling overseas money transfers from diaspora communities in the UK to destinations as diverse as Somalia, Bangladesh, Pakistan, Yemen, Sri Lanka and Poland. The International Association of Money Transfer Networks (IAMTN) says that up to 250 companies have been affected by the decision. Notice periods of no more than two months were given. Barclays justified its actions as a move to reduce the risk of being implicated in money-laundering or terrorist financing.

Edward Paice, director of Africa Research Institute, 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.

http://www.africaresearchinstitute.org/blog/somalia-remittances-and-unintended-consequences-in-conversation-with-abdirashid-duale/