17 April 2014

Somalia: Barclays Reaches Agreement With Dahabshil

British-based Barclays Bank has reached an agreement with Somali money-transfer company Dahabshil, allowing the company to remain open while it finds another bank, the UK's Financial Times reported.

The move prevents a halt in remittances that would be devastating to the Somali economy.

Dahabshil said the parties reached the agreement on "mutually acceptable terms".

"As part of the agreement, there will be a transition period to allow Dahabshil to end its banking relationship with Barclays and move to alternative arrangements," Dahabshil said. "In the interim, we are putting in place alternative arrangements which will avoid any disruption in service to our clients."

Barclays attempted to close Dahabshil's account in July 2013 over concerns that it had inadequate safeguards in place to prevent money laundering and other criminal activity, but the account's closure was delayed several times and it remains open.

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