Monday July 13, 2015
The Inter Government Authority on Development (IGAD) appeals to the United States, the United Kingdom, Australia, and other concerned governments to reverse their decision to close Somali and regional Money Transfer Operators until a comprehensive solution is reached to address illegal money transfer.In a communiqué issued on Monday, IGAD, once again, expressed grave concern over the humanitarian and security risks posed by the decision to close the bank accounts of Somali Money Transfer Operators and which called upon all parties to recommend comprehensive measures.
IGAD believes that unless international banks decisions are reversed, the resultant discontinuation of cash flows will lead to a humanitarian crisis in the region, particularly in the fragile states of Somalia and South Sudan, the communiqué has notedThe communiqué released today welcomes the establishment of the Somali Stakeholders Advisory Council and Regional Remittances Initiative, both aiming at the creation of safe, transparent, and legal flows of remittances while setting the foundation for robust regulations and reliable systems in the financial industry across the region.
The regional bloc calls all IGAD Member States to coordinate and support these efforts aimed at: the prevention of illegal money flows; the increase of transparency throughout all three steps of the remittances system; compliance with international regulation.
The communiqué came after the IGAD High Level Roundtable Ministerial Meeting on Remittances, co-organized by the Ministry of Finance and Economic Development of Ethiopia, with the support of the United Nations Development Programme (UNDP), was held today in the Ethiopian capital Addis Ababa.
The round table was meant to help formulate appropriate policies that enable the continuation of remittance flows and enhance their contribution to local, national, and regional economies.