Somalia: Global Alliance Fortifies Somali Financial System Against Illicit Threats

(GO) - A recent meeting attended by Brian Nelson, Under Secretary of the Treasury, laid a collective roadmap to protect the Somali financial system against illicit finance threats. Nelson expressed his commitment to collaborating with the Somali government and the private sector to achieve this objective.

During the meeting, Nelson acknowledged Somali authorities' progress in their battle against the terrorist group al-Shabaab. However, he stressed that the group continues to pose a substantial threat by attempting to exploit the Somali financial sector.

"One of my priorities during this trip is to determine how we can bolster our partnership to protect the Somali financial system from abuse," Nelson declared, highlighting the necessity for candid discussions about the nation's risks.

He praised Somali authorities for addressing deficiencies identified in their National Risk Assessment. These efforts include implementing regulatory reforms, enforcing existing regulations, and enhancing interagency cooperation.

Moreover, Nelson emphasized the private sector's vital role in implementing Anti-Money Laundering/Counter-Terrorist Financing (AML/CFT) regulations. He encouraged financial institutions to be proactive in identifying and mitigating Money Laundering/Terrorist Financing (ML/TF) risks and to report suspicious transactions promptly.

The Under Secretary of the Treasury hailed the increased engagement between Somalia's National Anti-Money Laundering Committee (NAMLC) and the private sector. He viewed this development as a positive step toward strengthening relations and cooperation between government agencies and critical industries.

Nelson also highlighted the importance of the recently adopted Targeted Financial Sanctions Law in Somalia, reminding the private sector of their crucial role in enforcing these sanctions. He urged them to work closely with Somali authorities to ensure effective implementation and protect the financial system from abuse.

He underscored the need for robust transaction monitoring and reporting mechanisms to maintain a healthy financial sector. He expressed optimism about the progress made by Somali authorities in implementing a National ID and increasing biometric registration requirements for mobile money users. These advances, according to Nelson, will significantly enhance customer identification procedures and fortify the AML/CFT framework.

Addressing establishing correspondent banking relationships with U.S. financial institutions, Nelson emphasized, "Establishing correspondent banking relationships is an internal business decision of financial institutions, and Treasury does not influence these private business decisions." He recommended that Somali financial institutions align their compliance frameworks with international standards to enhance their standing in the global financial community.

The Under Secretary of the Treasury concluded his remarks by reaffirming his commitment to bolster international engagement to strengthen AML/CFT regimes in foreign jurisdictions.

This meeting signals a more secure future for the Somali financial system. The collaborative efforts of the Somali government, the private sector, and the international community promise a robust strategy against exploitation by illicit actors, safeguarding Somalia's financial future.

GAROWE ONLINE