Drug traffickers and other criminals are increasingly seeking out indirect relationships with community banks and credit unions to move and launder their illicit proceeds after being turned away by larger financial institutions, say sources.
Money services businesses on a sanctions list in Kenya targeting terrorist organization Al-Shabab will have their licenses reinstated but face enhanced scrutiny going forward, the head of the country's financial intelligence unit said.
U.S. bank restrictions have exacerbated the troubles of Somali money services businesses to the point that companies and individuals alike are resorting to complex workarounds to send money to the East African nation.
Somali pirates are exploiting remittance services offered by regional telecommunications companies to launder the proceeds of kidnapping and other crimes, according to the World Bank.
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