Somalia’s Central Bank refutes claims of legal suits against local bank

 The Central Bank of Somalia has dismissed media reports that a local commercial bank was facing impending prosecution over alleged claims it served as a conduit for Al-Shabaab finances.

The Bank said it was not aware of any legal suits against the bank terming them ‘false claims’.

Though it did not mention the bank in question, some reports pointed to Salaam Somali Bank which was adversely mentioned by the UN Panel of Experts recently.

According to the Panel’s report, the commercial bank allowed Al-Shabaab to operate various accounts which held millions of dollars.

The money, the report said was extorted from traders at the port of Mogadishu while others were in form of alms forcefully collected by the group from Mogadishu residents.

But ina rejoinder to a New York Times report, Salaam Bank distanced itself from allegations noting its operations were regulated by the central bank.

In its statement Wednesday the Central Bank warmed against publications of such reports implicating local banks.