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Should Barclays go ahead with the closures it is unlikely another bank would step in.The London summit had been meant to find a compromise ahead of Barclays' September 30th deadline for closing the remittance agencies' accounts.
The bank has already set back its deadline by one month, but still small remittance firms say they were given too little notice to make alternative arrangements.
Dahabshiil, a remittance company with extensive operations in Somalia and Somaliland, had previously had its deadline extended twice but had been told by Barclays that 30 September was the final cut-off date.
The letter to Simmonds urges the UK government to help Somali MSBs find alternative banks, and requests that Barclays extends its termination deadline for at least six months so that the flow of remittance through licensed companies is not disrupted until a more durable solution can be found.
§ 377.105 Collection and remittance.
Remittance payments to Somalia dwarf aid spending.
21 deadline.
Deadline after deadline was missed.
(E) Health care payment and remittance advice.
§ 3120.3-3 Minimum bid and rental remittance.
Barclays, the last major bank providing remittance services to Somalia, announced in May that it planned to shut down the accounts to about 250 money-service businesses, initially setting a 10 July deadline, citing concern over falling foul of money-laundering regulations.
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