Oral Answers to Questions

Debate between Rushanara Ali and Mark Simmonds

Tuesday 29th October 2013 Commons Chamber

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Barclays bank made the decision to end banking facilities for money transfer companies such as Dahabshiil and that decision will devastate countries such as Somalia. Will the Foreign Secretary take this opportunity to speak up and explain what he will do to try to prevent the closure of this legitimate route of money transfer to a country that depends on it for its security and to achieve transformation there?

[The Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs (Mark Simmonds)]

I am grateful for the hon. Lady’s question. She is right to make the point that remittances are extremely important, particularly as they relate to Somalia. But most Somali remittances are made through small scale businesses that operate in cash and do not have bank accounts. They will therefore be unaffected by a commercial decision by Barclays bank. However, the Government are taking the decision seriously. The Treasury, which is leading on this matter, the Department for International Development and the Foreign and Commonwealth Office are working to find a solution, and DFID is developing a pilot project to help secure international remittance channels.