Central Bank rubbishes ‘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 regulator 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, CBS said it was not privy to allegations of lawsuits against any bank.

The reaction from the Central Bank follows allegations in the social media Salaam Somali Bank was being pursued for possible prosecution. The UN Panel of Experts reports submitted to the UN Security Council claimed the militant group Al-Shabaab maintained several accounts in the bank moving millions of dollars within the 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.