Barclays vs Dahabshiil: when a Somali money transfer company takes on a banking giant

The Somali money transfer service Dahabshiil has won an injunction against Barclays, which had been threatening to cut off services to the company.

Yesterday, the Somali money transfer service Dahabshiil won an injunction against Barclays, which had been threatening to cut off services to the company over money-laundering fears. It’s hard to underestimate how significant this decision will prove for ordinary Somalis. Every year, British Somalis send around ₤500m home to relative and friends, and for many in Somalia, this is their primary source of income.

Overall the Somali diaspora send around $1.3bn home annually, and as years of civil conflict have left the country’s economy and banking sector in tatters, remittances are worth around 50 per cent of Somalia’s economy.

The main money transfer companies, like Western Union, which in 2012 was responsible for global money transfers of $72bn, do not operate in Somalia. Barclays is the only bank still offering services to small operators like Dahabshiil. If Barclays had been allowed to sever ties with Dahabshiil the effect for ordinary Somalis would be much greater than the cutting of all UK aid to Somalia: DfID pledged to deliver 63m in aid in 2012/13. No wonder the campaign to preserve this Somali lifeline has attracted high-profile supporters, including Mo Farah.

If Barclays had succeeded in cutting its relationship with Dahabshiil, this might have absolved it of responsibility to implement tough money-laundering checks, but it wouldn’t have stopped money flowing from the UK to groups like Al-Shabab. Removing formal channels would only force Somalis to rely on more expensive, less reliable informal money transfer agents. British-Somalis would find it harder to send money home, and UK authorities would struggle to monitor cash flows into Somalia.

Unfortunately, Dahabshiil was only granted extra time, and next year there will be new hearings to determine if it can still use Barclay’s services. Millions of Somalis may breathe a sigh of relief, but this problem isn't over yet.
 

A Somali money changer. Remittances from abroad make up half of the country's economy. Photo: Getty.

Sophie McBain is a freelance writer based in Cairo. She was previously an assistant editor at the New Statesman.

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Theresa May’s stage-managed election campaign keeps the public at bay

Jeremy Corbyn’s approach may be chaotic, but at least it’s more authentic.

The worst part about running an election campaign for a politician? Having to meet the general public. Those ordinary folk can be a tricky lot, with their lack of regard for being on-message, and their pesky real-life concerns.

But it looks like Theresa May has decided to avoid this inconvenience altogether during this snap general election campaign, as it turns out her visit to Leeds last night was so stage-managed that she barely had to face the public.

Accusations have been whizzing around online that at a campaign event at the Shine building in Leeds, the Prime Minister spoke to a room full of guests invited by the party, rather than local people or people who work in the building’s office space.

The Telegraph’s Chris Hope tweeted a picture of the room in which May was addressing her audience yesterday evening a little before 7pm. He pointed out that, being in Leeds, she was in “Labour territory”:

But a few locals who spied this picture online claimed that the audience did not look like who you’d expect to see congregated at Shine – a grade II-listed Victorian school that has been renovated into a community project housing office space and meeting rooms.

“Ask why she didn’t meet any of the people at the business who work in that beautiful building. Everyone there was an invite-only Tory,” tweeted Rik Kendell, a Leeds-based developer and designer who says he works in the Shine building. “She didn’t arrive until we’d all left for the day. Everyone in the building past 6pm was invite-only . . . They seemed to seek out the most clinical corner for their PR photos. Such a beautiful building to work in.”

Other tweeters also found the snapshot jarring:

Shine’s founders have pointed out that they didn’t host or invite Theresa May – rather the party hired out the space for a private event: “All visitors pay for meeting space in Shine and we do not seek out, bid for, or otherwise host any political parties,” wrote managing director Dawn O'Keefe. The guestlist was not down to Shine, but to the Tory party.

The audience consisted of journalists and around 150 Tory activists, according to the Guardian. This was instead of employees from the 16 offices housed in the building. I have asked the Conservative Party for clarification of who was in the audience and whether it was invite-only and am awaiting its response.

Jeremy Corbyn accused May of “hiding from the public”, and local Labour MP Richard Burgon commented that, “like a medieval monarch, she simply briefly relocated her travelling court of admirers to town and then moved on without so much as a nod to the people she considers to be her lowly subjects”.

But it doesn’t look like the Tories’ painstaking stage-management is a fool-proof plan. Having uniform audiences of the party faithful on the campaign trail seems to be confusing the Prime Minister somewhat. During a visit to a (rather sparsely populated) factory in Clay Cross, Derbyshire, yesterday, she appeared to forget where exactly on the campaign trail she was:

The management of Corbyn’s campaign has also resulted in gaffes – but for opposite reasons. A slightly more chaotic approach has led to him facing the wrong way, with his back to the cameras.

Corbyn’s blunder is born out of his instinct to address the crowd rather than the cameras – May’s problem is the other way round. Both, however, seem far more comfortable talking to the party faithful, even if they are venturing out of safe seat territory.

Anoosh Chakelian is senior writer at the New Statesman.

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