Page 10 - wargeyska

Somalipress Banking March 2015 10

Central Bank Chief Battles To Keep
Somalia Connected To World Finance.

quit citing official corrup- have every right to be per-
tion. The government sonally concerned or be
denied the charges. afraid.”

In a world where many “We have to address the Merchants Bank of Al Shabaab, determined to
central bankers fret about concerns of the interna- California, which charities impose its strict interpreta-
deflation, defaults and cur- tional community,” he said estimated handled up to 80 tion of Islam on the nation,
rency break-ups, Somalia’s of moves to draw up new percent of remittances frequently launches bomb-
central bank chief has a regulations for Somali from the United States, ings and gun attacks in
more straightforward mis- banks and transfer firms. told Somali-American Mogadishu, a city which is
sion: helping a financial “Our regulations begin transfer firms it was ending slowly recovering.
industry that grew up in things from scratch so it’s relations. In Britain,
war to survive in peace. difficult to do.” Barclays recently withdrew With new buildings sprout-
banking services. ing up and some Somali
It has become an urgent The money transfer firms, investors returning, the
matter. Money transfer many with fully regulated Ali wants to rebuild confi- financial landscape is
firms which kept cash flow- and licensed offices in the dence and rehabilitate the changing. In October, the
ing into Somalia during two West and elsewhere, insist banking industry so that it Salaam Somali Bank
decades of conflict when they already meet require- will draw in foreign banks, opened the city’s first ATM
the nation’s formal financial ments for those markets including as partners with cash machine, which dis-
system collapsed are now and say they are ready to Somali institutions. penses dollars, widely used
finding fewer banks abroad do more to keep channels in Somalia.
ready to do business with open, if only regulators “We are trying to engage
them. explain would what was and entice international But most Somalis rely on
needed. commercial banks which mobile money services via
Regulators around the can open branches and buy their phones, given the
world have tightened pro- Ali is working with the other (Somali) banks, in scarcity of the Somali
cedures to stop funds World Bank, International order for us to have more 1,000 shilling note, the
reaching those Western Monetary Fund and others professional banks,” Ali only local currency unit still
and other governments call on regulations for the said. in circulation and mostly
“terror” groups, such as financial sector. The central tattered as it was last
Somalia’s al Shabaab bank has awarded six com- Tentative talks have been printed before war erupted
Islamists. mercial banking held with several banks in 1991.
licences, all to from Kenya, Somalia’s
Somali firms insist their remittance firms southern neighbour, and Ali said this entrepreneurial
procedures ensure cash seeking to for- one commercial bank from spirit kept Somalis going
reaches ordinary citizens malise banking Turkey, a big donor and during the war and should
and is not diverted. But activities. investor. Turkish firms now be harnessed for
banks are gradually closing already operate Mogadishu reconstruction.
down their ties and choking COMPLIANCE port and the airport.
a lifeline for the nation. “We are very bad farmers,
His proposals Ali did not name the banks very bad fishermen and
An estimated $1.3 billion which include bio- and acknowledged talks very bad at politics, but we
or more is transferred each metric identifica- had not gone far. “They are the best businessmen
year from Somalis abroad, tion for clients were concerned about in the world.”
often in small monthly pay- and improving security,” he said. “They
ments of $200 or $300 to registration proce-
keep families back home a dures for mobile Shirkada dhismaha
fed and schooled. phone SIM cards. casriga SETAC:

Tel: 0617513131 ama
0627513131
e-mail: setac6@gmail.com

“Somalia may live without “We have to

a government but it cannot ensure they have

live without remittance some compliance

companies,” Governor mechanisms, anti-

Bashir Issa Ali told Reuters money launder-

from Mogadishu, where the ing, anti-terrorism

spruced up central bank is financing,” said

still surrounded by Ali, who was

bombed-out buildings and appointed gover-

the rubble of war. nor in April after

his predecessor

Ku Xayeesiiso Wargeyska Somalipress 0617603737/0627603737/0607603737