The National Communications Authority of Somalia has directed telecommunications providers to follow a list of judgments given by the National Anti-Money Laundering & Combating Terrorism Funding Commission (NAMLC) in mid-February. These choices must be implemented as soon as possible by the companies.
The agency has demanded that telecoms providers seek licenses for mobile money services from the Central Bank of Somalia. Furthermore, they must ensure that their mobile money services and mobile virtual network operators (MVNO) adhere to the Central Bank’s technical and operational criteria as well as the decisions of the NAMLC Executive Committee.
According to a statement made by the Somali Communications Agency, telecoms providers must register their clients’ SIM cards. New customers must submit at least one photograph and fingerprint. Current clients must re-register within 90 days, in accordance with Anti-Money Laundering and Terrorist Financing Law Article 5 and National Telecommunications Law Article 66.
The agency highlighted that Somali telecommunications businesses must follow all decisions issued by the National Committee for the Prevention of Money Laundering and Combating the Financing of Terrorism, as well as collaborate closely with various Somali government organizations.
The modifications are being made in order to codify Somalia’s digital banking system. Hormuud Telecom was issued the country’s first mobile money license in February 2021, making the Mogadishu-based EVC Plus service subject to central bank regulation.
In Somalia, mobile money has become the major way of payment, accounting for more than two-thirds of all payments.