Identifier
Created
Classification
Origin
09LONDON1303
2009-06-02 14:18:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy London
Cable title:
SOMALILAND: LACK OF FINANCIAL SECTOR REGULATIONS
how-toVZCZCXRO8419 PP RUEHDE RUEHROV RUEHTRO DE RUEHLO #1303 1531418 ZNR UUUUU ZZH P 021418Z JUN 09 FM AMEMBASSY LONDON TO RUEHC/SECSTATE WASHDC PRIORITY 2495 INFO RUEHNR/AMEMBASSY NAIROBI PRIORITY 0466 RUEHDJ/AMEMBASSY DJIBOUTI PRIORITY 0090 RHEHNSC/NSC WASHDC PRIORITY RUCNSOM/SOMALIA COLLECTIVE PRIORITY
UNCLAS LONDON 001303
SIPDIS
SENSITIVE
DEPART FOR INR/B
E.O. 12958: N/A
TAGS: EAID PREL EFIN PINR SO UK
SUBJECT: SOMALILAND: LACK OF FINANCIAL SECTOR REGULATIONS
INHIBITS PRIVATE SECTOR DEVELOPMENT
REF: 08 LONDON 2188
UNCLAS LONDON 001303
SIPDIS
SENSITIVE
DEPART FOR INR/B
E.O. 12958: N/A
TAGS: EAID PREL EFIN PINR SO UK
SUBJECT: SOMALILAND: LACK OF FINANCIAL SECTOR REGULATIONS
INHIBITS PRIVATE SECTOR DEVELOPMENT
REF: 08 LONDON 2188
1. (SBU) Somaliland's economic growth and development are
hindered by having no legislative framework to regulate the
financial services sector, Saad Ali Shire of Dahabshiil, the
UK's largest Somalia remittances transfer firm (reftel),told
Poloff June 2. He offered the following thoughts:
-- The USG should press Somaliland authorities to pass
legislation to regulate the financial services sector. Shire
explained that Dahabshiil had paid consultants to draft
legislation, in coordination with the World Bank, but
Somaliland politicians had not enacted it. He said many
thought it was because the Central Bank Governor and Minister
of Finance fear that robust financial institutions could
diminish their authority.
-- The USG should work with Central Bank Governor Abdul
Rahman and the Minister of Finance to "update their thinking"
on management of financial services. Shire said both have a
"leger-based mentality" when considering finances and would
benefit from trips abroad to learn how governments should
support financial services industries as engines of economic
growth.
2. (SBU) On Dahabshiil's operations, Shire said that
remittance transfers are down by 20 percent over the same
period last year due to the decrease in strength of the
British Pound and the increasing number of UK-based Somalis
who are unemployed. He said Dahabshiil, an organization
which Embassy London has been encouraging to offer
Sharia-compliant microloans in Somaliland, offers limited
financial services in Somaliland in addition to money
transfer services, such as non-interest earning savings
accounts. He also noted that Dahabshiil had just received a
license to operate as a fully functional bank in Djibouti.
Comment
--------------
3. (SBU) Shire is very engaged in the UK's Somali Diaspora
community, where he actively cultivates business
relationships. He plans to travel to Somaliland in late June
to undertake a comprehensive study of Somaliland's financial
services sector and to encourage the Somaliland authorities
to create a regulatory framework, with the hopes of enhancing
Dahabshiil financial services products in Somaliland.
Visit London's Classified Website:
http://www.intelink.sgov.gov/wiki/Portal:Unit ed_Kingdom
LeBaron
SIPDIS
SENSITIVE
DEPART FOR INR/B
E.O. 12958: N/A
TAGS: EAID PREL EFIN PINR SO UK
SUBJECT: SOMALILAND: LACK OF FINANCIAL SECTOR REGULATIONS
INHIBITS PRIVATE SECTOR DEVELOPMENT
REF: 08 LONDON 2188
1. (SBU) Somaliland's economic growth and development are
hindered by having no legislative framework to regulate the
financial services sector, Saad Ali Shire of Dahabshiil, the
UK's largest Somalia remittances transfer firm (reftel),told
Poloff June 2. He offered the following thoughts:
-- The USG should press Somaliland authorities to pass
legislation to regulate the financial services sector. Shire
explained that Dahabshiil had paid consultants to draft
legislation, in coordination with the World Bank, but
Somaliland politicians had not enacted it. He said many
thought it was because the Central Bank Governor and Minister
of Finance fear that robust financial institutions could
diminish their authority.
-- The USG should work with Central Bank Governor Abdul
Rahman and the Minister of Finance to "update their thinking"
on management of financial services. Shire said both have a
"leger-based mentality" when considering finances and would
benefit from trips abroad to learn how governments should
support financial services industries as engines of economic
growth.
2. (SBU) On Dahabshiil's operations, Shire said that
remittance transfers are down by 20 percent over the same
period last year due to the decrease in strength of the
British Pound and the increasing number of UK-based Somalis
who are unemployed. He said Dahabshiil, an organization
which Embassy London has been encouraging to offer
Sharia-compliant microloans in Somaliland, offers limited
financial services in Somaliland in addition to money
transfer services, such as non-interest earning savings
accounts. He also noted that Dahabshiil had just received a
license to operate as a fully functional bank in Djibouti.
Comment
--------------
3. (SBU) Shire is very engaged in the UK's Somali Diaspora
community, where he actively cultivates business
relationships. He plans to travel to Somaliland in late June
to undertake a comprehensive study of Somaliland's financial
services sector and to encourage the Somaliland authorities
to create a regulatory framework, with the hopes of enhancing
Dahabshiil financial services products in Somaliland.
Visit London's Classified Website:
http://www.intelink.sgov.gov/wiki/Portal:Unit ed_Kingdom
LeBaron