22 August 2017
Visit http://response.ncr.com

Somali Islamists ban mobile money

19 October 2010  |  8285 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)

Finextra news in your inbox

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

Related stories

Barclays Kenya partners M-Pesa

Barclays Kenya partners M-Pesa

14 October 2010  |  9109 views  |  0 comments
Telkom Kenya plans m-banking service

Telkom Kenya plans m-banking service

14 September 2010  |  7761 views  |  0 comments
SocGen targets Africa for m-payments roll-out

SocGen targets Africa for m-payments roll-out

28 June 2010  |  7219 views  |  0 comments
M-Pesa launches in South Africa

M-Pesa launches in South Africa

16 February 2010  |  13915 views  |  0 comments
Mi-Pay and Isys launch mobile money transfer service in Sudan

Mi-Pay and Isys launch mobile money transfer service in Sudan

09 March 2009  |  11325 views  |  0 comments
Zain targets 100 million East Africans with new m-banking service

Zain targets 100 million East Africans with new m-banking service

17 February 2009  |  9793 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
19 October 2010
visit www.dorsum.euvisit www.abe-eba.euvisit www.vasco.com

Top topics

Most viewed Most shared
Mobile contactless spending accelerating in UKMobile contactless spending accelerating i...
12501 views comments | 26 tweets | 23 linkedin
Barclays pairs banking data with third party apps for SmartBusiness DashboardBarclays pairs banking data with third par...
11047 views comments | 22 tweets | 34 linkedin
hands typing furiouslyWhy Is Risk Analytics Important?
10274 views 0 | 6 tweets | 1 linkedin
RBS to bring Silicon Valley to EdinburghRBS to bring Silicon Valley to Edinburgh
10214 views comments | 10 tweets | 8 linkedin
Australia regulates digital currenciesAustralia regulates digital currencies
10145 views comments | 21 tweets | 34 linkedin