Kenya has frozen the bank accounts of 86 people and suspended the licenses of 13 money transfer organizations, including Dahabshiil, for their alleged role in funding the terrorist group al-Shabaab. From NTV Kenya last week:
Critics of decisions like this often claim that regulators are cutting off “life lines” to poor Somalis by making money transfers to Somalia more difficult. But as the news report points out, there are major, conventional banks that provide wire services. It’s just that the fees are higher with the banks than with smaller money transfer firms and hawala dealers. Kudos to Kenya for attempting to rein in the funding of al-Shabaab.