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| Barclays faces pressure from Somali cash transfer firms | Barclays faces pressure from Somali cash transfer firms |
| (35 minutes later) | |
| The UK government is being urged to stop Barclays closing the last account in Somalia which allows its citizens overseas to send money back home. | The UK government is being urged to stop Barclays closing the last account in Somalia which allows its citizens overseas to send money back home. |
| A group of aid practitioners said the service was a "lifeline" for an estimated 40% of the Somali population which rely on the transfers. | |
| There are an estimated 1.5m Somalis living overseas. | There are an estimated 1.5m Somalis living overseas. |
| Barclays said it could only serve firms which had strong anti-financial crime controls. | Barclays said it could only serve firms which had strong anti-financial crime controls. |
| Barclays is the last major British bank to still provide such money transfer services in Somalia. | Barclays is the last major British bank to still provide such money transfer services in Somalia. |
| Its plan to close its account with Dahabshiil - the largest money transfer business providing services to Somalia - on 10 July will cause a crisis for the families which rely on the transfers, the letter signed by over 104 researchers and aid practitioners states. | Its plan to close its account with Dahabshiil - the largest money transfer business providing services to Somalia - on 10 July will cause a crisis for the families which rely on the transfers, the letter signed by over 104 researchers and aid practitioners states. |
| Six-month extension | Six-month extension |
| "We call on the UK government to request that Barclays extends its termination deadline for at least six months," the group wrote in a letter. | "We call on the UK government to request that Barclays extends its termination deadline for at least six months," the group wrote in a letter. |
| It said it also wanted the UK government to assist Somali money transfer businesses in finding alternative banking partners, as well as help the businesses develop the enhanced due diligence required by banks. | It said it also wanted the UK government to assist Somali money transfer businesses in finding alternative banking partners, as well as help the businesses develop the enhanced due diligence required by banks. |
| The group estimates that almost three quarters of Somalis who receive funds from overseas use it to pay for basic food, education and medical expenses. | The group estimates that almost three quarters of Somalis who receive funds from overseas use it to pay for basic food, education and medical expenses. |
| It says one third of those who receive funds would not be able to afford basic food if the transfers are stopped. | It says one third of those who receive funds would not be able to afford basic food if the transfers are stopped. |
| The UK Serious Organised Crime Agency has identified money service businesses generally as a potential money laundering risk. | The UK Serious Organised Crime Agency has identified money service businesses generally as a potential money laundering risk. |
| And all international banks have been tightening rules in a bid to cut money laundering and funding of groups accused of terrorism. | And all international banks have been tightening rules in a bid to cut money laundering and funding of groups accused of terrorism. |
| "Some money service businesses don't have the proper checks in place to spot criminal activity and could therefore unwittingly be facilitating money laundering and terrorist financing," Barclays said in a statement. | "Some money service businesses don't have the proper checks in place to spot criminal activity and could therefore unwittingly be facilitating money laundering and terrorist financing," Barclays said in a statement. |
| The bank emphasised that it was "very happy" to serve companies with strong anti-financial crime controls. | The bank emphasised that it was "very happy" to serve companies with strong anti-financial crime controls. |
| Lifeline | Lifeline |
| The Somali Money Services Association (SOMSA), an umbrella group of transfer services, said the closures would "have dire consequences in Somalia, where no alternatives to the money service businesses exist". | The Somali Money Services Association (SOMSA), an umbrella group of transfer services, said the closures would "have dire consequences in Somalia, where no alternatives to the money service businesses exist". |
| Of SOMSA's 17 members, 12 have already had their accounts closed, with the remaining five facing "imminent" shutdown. | Of SOMSA's 17 members, 12 have already had their accounts closed, with the remaining five facing "imminent" shutdown. |
| "The key issue is the damage to flows of cash to the vulnerable Somali people, who depend on remittances for their livelihood; and the likely threat of this action to economic and political stability in fragile parts of the Somali region," SOMSA said in a statement. | "The key issue is the damage to flows of cash to the vulnerable Somali people, who depend on remittances for their livelihood; and the likely threat of this action to economic and political stability in fragile parts of the Somali region," SOMSA said in a statement. |
| Somalis send money back home via transfer shops known as hawala, which can accept deposits abroad and immediately credit recipients in Somalia. | Somalis send money back home via transfer shops known as hawala, which can accept deposits abroad and immediately credit recipients in Somalia. |