Central Bank of Somalia rejects ‘legal suit’ claims against local bank

Somalia’s Central Bank has refuted media reports of an impending suit against one of the commercial banks in the country over its alleged role in funneling funds for the militant group al-Shabaab.

The Central Bank said the reports were false and urged the media against spreading ‘such falsehoods’. Noting that it was the sole body mandated to regulate all financial institutions in the country, they also added it was not privy to allegations of lawsuits against any bank.

The reaction from the central bank follows allegations that al-Shabaab maintained several accounts in the commercial banks of Somalia moving millions of dollars within their accounts.

According to the report, al-Shabaab generates close to five million dollars from the port of Mogadishu and extortions in form of religious alms in Mogadishu. The funds, the report noted are channeled to the bank accounts through direct bank transfers or mobile money.