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Friday, April 10, 2015

Somalia forms financial taskforce to streamline banking, remittance

(Medeshi)- Somalia has formed a multi- agency taskforce aimed at streamlining banking and remittance challenge, following the termination of money transfer services by the U.S. and British banks over fears that the money could be channelled to militant groups in East Africa.

The Special Task Force on Remittance (STFR) is mandated to coordinate and accelerate government policy and actions to address remittance and the formalization of the Somali financial sector.
Somali President Hassan Sheikh Mohamud said in a statement the STFR draws membership from government institutions, private banks and remittances sectors.
Mohamud has called on the Somali people and international partners to support the government in strengthening the taskforce, noting that a strong financial environment for Somalia will provide safe transfer of money from other parts of the world.
The president said Somalia is a victim of weak regulatory environment as the Western governments have been stopping remittances flowing through their banks.
“The focus should be just as much on the flows out of rather than into Somalia as we are probably experiencing net losses. We will need to work with our international partners to retain our resources and pursue our stolen assets,” the president said.
He added the taskforce will lead the government effort in ratifying international conventions under the Financial Action Task Force.
The president called on international partners to support Somalia accede to national and international transparency conventions and laws adding that there is also need to find an interim solution to the money transfer as Somalia develops the legal and regulatory framework for a formal banking sector.
He said constraining remittances will hurt the poorest in a Somalia where there is no social security system and at least 40 percent of the population depends on the remittance. Enditem

Source: Xinhua