Humanitarian agencies decry US bank Somali remittance cut

Leading humanitarian agencies operating in Somalia has criticized the move by US bank to cut Somali remittance.

Oxfarm and Adeso have said the move will affect thousands of families in the war torn state who rely on relatives in United States.

Last week, US Merchants Bank has announced it will shut down accounts for informal money-remittance services in Somalia that have been a lifeline to many Somalis who receive money from families abroad.
Lawmakers and aid agencies have appealed to U.S. officials to find an alternative means of keeping family remittances flowing while working to improve the security of money transfers.

The prime minister of Somalia Omar Abdirashid Sharmarke has asked U.S. banks to reconsider their decision.

 

Officials in the Obama administration have also expressed concern and numerous meetings have been held, but no solution has yet emerged.

 

Traditional Somali remittance famously known as Hawala is becoming very popular but US and European countries are suspecting it also used by armed group Al Shabaab to receive money from its supporters.