The World Bank said it works with the Federal Government of Somalia to help support the flow of remittances to Somalia, to ensure they continue to reach people who depend on them as a critical source of income.
Remittances in 2015 were estimated to reach a total of US$1.4 billion in Somalia and support 23% of the GDP.
Over the past two years, many banks in the United States, United Kingdom, Canada and Australia have closed the bank accounts of Somali remittance companies purportedly due to the perceived high risks of money laundering and potential links to terrorism.
in a press statement by the World Bank says that it has been working alongside the Central Bank of Somalia (CBS) to implement a number of activities aimed at tackling key deficiencies in the Somali financial sector affecting remittance flows to the country.
“In this context, the World Bank has selected and appointed “Abyrint AS” to act as the “Trusted Agent” to the CBS and assist the authorities in comprehensively regulating and supervising money transfer businesses,” reads the statement.
It added,”Abyrint has been selected through a publicly advertised and competitive process, in line with World Bank procedures, and has already commenced activities on the ground in Mogadishu.”
The “Trusted Agent”, in collaboration with the CBS, will conduct joint on-site and off-site supervision with CBS staff on registered and licensed money transfer businesses as well as work to build capacity within the CBS’s Licensing and Supervision Department.