24 November 2014

Somali Islamists ban mobile money

19 October 2010  |  7345 views  |  0 STOP

A Somali Islamist group has told telcos in the country to stop offering mobile money transfer services, branding the practice "unIslamic".

The al Shabaab group, which is linked to al-Qaeda and controls large swathes of the country, has issued a statement telling providers Hormuud, Telesom and Golis to stop offering the services within three months.

An official from one of the firms told the BBC that they "had no option but to obey" the order.

The group says mobile money helps to feed Western capitalism and enables outside interference in Somalia's economy though the telcos' foreign partners.

However, according to the AFP, Somalia's transitional government claims al Shabaab only decided to impose a ban after the providers refused to let the group use their services for "terrorist fund-raising".

It has also been claimed that the ban is designed to cut off a new rival to traditional money transfer systems, called hawala, which can be taxed by al Shabaab.

Comments: (0)

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)
19 October 2010

Related stories

14 October, 2010
14 September, 2010
28 June, 2010
18 May, 2010
16 February, 2010
09 March, 2009
18 February, 2009
17 February, 2009

Featured job

Competitive base, bonus, full benefits
Anywhere, UK (Europe Considered)

Find your next job