LONDON // A British bank could soon be cutting a financial lifeline for millions of Somalis.
Barclays is poised to sever its ties to Dahabshiil, one of the Somali expatriate community’s biggest money transfer services, as part of a reorganisation of its business. Barring a successful last-minute court challenge, experts say the move will jeopardise £100 million pounds (Dh587m) worth of payments made from the UK each year.
Barclays’ move, part of an industry-wide effort to insulate banks from the risks associated with money-laundering and corruption, could force Dahabshiil to stop executing transfers between individuals within days. A court ruling had been expected yesterday but was delayed.
Barclays and other British banks have been cutting high-risk clients after a slew of scandals involving money laundering and corruption.
Somalia has not had a functional government in two decades, and the flow of expatriate money to the troubled East African nation has repeatedly come under law enforcement scrutiny.
* Associated Press