This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-23255853
The article has changed 3 times. There is an RSS feed of changes available.
Version 0 | Version 1 |
---|---|
Barclays account shutdown raises Somali fears | Barclays account shutdown raises Somali fears |
(about 1 hour later) | |
Barclays bank is closing about 100 UK accounts held by cash transfer businesses, over fears they are being used for money laundering. | Barclays bank is closing about 100 UK accounts held by cash transfer businesses, over fears they are being used for money laundering. |
The businesses are vital for Somali expatriates sending remittances back home, where banking facilities have collapsed. | The businesses are vital for Somali expatriates sending remittances back home, where banking facilities have collapsed. |
Aid workers say the service is a "lifeline" for 40% of the Somali population, who rely on the transfers. | Aid workers say the service is a "lifeline" for 40% of the Somali population, who rely on the transfers. |
It is feared that the cash transfer business could now go underground. | It is feared that the cash transfer business could now go underground. |
Several money transfer businesses - including Dahabshiil, the largest such business providing services to Somalia - say Barclays has given them a temporary reprieve of one month. | Several money transfer businesses - including Dahabshiil, the largest such business providing services to Somalia - say Barclays has given them a temporary reprieve of one month. |
Dahabshiil says it is urgently trying to meet the bank's criteria to keep its account open. | Dahabshiil says it is urgently trying to meet the bank's criteria to keep its account open. |
Abdirashid Duale, chief executive officer of Dahabshiil, has said Barclays' decision could see money transfers pushed underground into the hands of "unregulated and illegal providers". | Abdirashid Duale, chief executive officer of Dahabshiil, has said Barclays' decision could see money transfers pushed underground into the hands of "unregulated and illegal providers". |
Barclays is the last major UK bank that still provides such money transfer services to Somalia, which has an estimated 1.5 million of its nationals living overseas. | Barclays is the last major UK bank that still provides such money transfer services to Somalia, which has an estimated 1.5 million of its nationals living overseas. |
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. |
'Humanitarian crisis' | |
All international banks have been tightening rules in a bid to cut money laundering and funding of groups accused of terrorism. | 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 last month. | "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 last month. |
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. |
Last month, more than 100 researchers and aid workers signed a letter urging the UK government to stop Barclays closing its account with Dahabshiil. | Last month, more than 100 researchers and aid workers signed a letter urging the UK government to stop Barclays closing its account with Dahabshiil. |
They said the move would cause a crisis for the families that rely on the transfers. | They said the move would cause a crisis for the families that rely on the transfers. |
According to Dominic Thorncroft of the UK Money Transmitters Association trade body, "closing these accounts will lead to a humanitarian crisis in Somalia". |