Somalia’s recent approval of key amendments to its Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) Law is a commendable move.

Development Diaries reports that Somalia’s parliament said it approved the amendments to enhance the country’s AML and CTF framework.

But beyond this move, to truly break the cycle of illicit financial flows that have plagued Somalia’s economy and security, there must be robust enforcement, international cooperation, and comprehensive financial sector reforms.

Money laundering and terrorist financing are not abstract threats; they have tangible and devastating effects on Somalia’s stability. 

According to the United Nations Office on Drugs and Crime (UNODC), illicit financial flows in Africa exceed $88.6 billion annually, with a significant portion linked to organised crime and terrorism. 

Somalia has been a particular hotspot, with groups like Al-Shabaab exploiting financial loopholes to sustain their operations. Without effective enforcement mechanisms, legal reforms risk being mere symbolic gestures.

Legislation alone is insufficient without concrete enforcement strategies. To make these amendments effective, the Somali government must establish independent oversight bodies/agencies, enhance banking sector regulation, improve cross-border cooperation, and invest in the capacity building of its law enforcement officers.

Development Diaries calls on the Somali government to demonstrate its commitment to real change by swiftly implementing the new amendments with transparency and accountability. 

We also urge the citizens of Somalia to demand greater financial transparency from their leaders.

Photo source: Shabelle Media Network