To ask Mr Chancellor of the Exchequer, when he expects the safe corridor pilot for remittances to Somalia to open.
23 March 2015
The Action Group on Cross Border Remittances will next meet on Friday 27 March 2015. Over the past year, the group has undertaken a number of initiatives to improve trust and transparency in the money service business (MSB) sector and give banks greater confidence to deal with MSBs – and crucially remittances continue to flow to Somalia and other developing countries.
Working closely with the supervisors, the Action Group has initiated revised guidance to the MSB sector and for those banking MSBs. The National Crime Agency have worked collaboratively with the banking and MSB sectors to improve understanding of the risks and how they can be managed, and the Safer Corridor pilot has been initiated.
The Safer Corridor Pilot is implemented by the World Bank, and funded by the Department for International Development (DFID.) The World Bank is currently revising the design of the pilot based on feedback received from extensive consultation with key market players, including regulators, banks and MSBs. DFID expects the World Bank to complete the design by the end of April with a view to starting procurement soon after. Whilst this has taken time, it is also ensuring that the pilot will respond to the needs of all stakeholders and increasing the chances of the pilot achieving its desired impact.