The Remittance Dilemma in Somalia

Question 1

When was the remittance dilemma?

Answer 1

2012

Question 2

What percentage of Somalians rely on remittances to pay for their basic needs?

Answer 2

40%

Question 3

What percentage of the GNI do remittances account for in Somalia?

Answer 3

50%

Question 4

What percentage of investment in the country do remittances account for?

Answer 4

80%

Question 5

What happened in 2012?

Answer 5

There was concern over some of the remittance money falling into the hands of terrorist groups

Question 6

What happened in 2012 as a result of this concern?

Answer 6

Many US and UK banks and money transfer agencies withdrew the money transfer service

Question 7

What was the effect of remittances being stopped?

Answer 7

Protests were organised by human rights groups

Question 8

Give 4 conditions in Somalia which concerned the banks

Answer 8

The informal economy, with little government regulation
The lack of anti-money laundering laws
The lack of due diligence, SARs for money transmitters
The terrorist group Al-Shabaab

Question 9

What are SARs?

Answer 9

Suspicious activity reports

Question 10

Who donates money to Al-Shabaab?

Answer 10

Domestic and foreign sympathisers