Somalia’s central bank has announced a new policy requiring citizens to present national identification cards before accessing banking services.
The move is meant to combat financial crime and restore public trust in financial institutions, the central bank said.
It will affect bank services like opening of accounts, making payments, depositing and withdrawing money and applying loans.
“The regulation is aimed at eliminating fraudulent identity use, curbing money laundering, and ensuring secure access to financial services,” the central bank said.
How did we get here?
Somalia operated without a centralised identification system for more than 30 years following the collapse of President Siad Barre’s government in January 1991.
In that span of time, financial transactions, government services and even law enforcement relied on mutual trust, clan networks or foreign passports in the absence of official identity.
The country rolled out issuance of new biometric identity cards in September 2023. This has since been expanded beyond the capital, Mogadishu, to Galmudug, Hirshabelle, and even Las Anod in the SSC-Khaatumo region.
The new regulation on banking services was issued in collaboration with the National Identification and Registration Authority (NIRA) and the Somali Bankers Association.
It will initially take effect in the Benadir region, which includes the capital Mogadishu, before being rolled out nationwide.
Why is it important?
It is part of Somalia’s national transformation plan, adopted in March 2025, which aims at rebuilding state systems, digitising government services and enhancing citizen dignity.
The government has enacted data protection laws and called on all government and non-governmental service providers to link services - including education, healthcare, and subsidies - to the national ID system.
“This ID system addresses many long-standing problems, from elections and mobility to public safety and economic opportunity,” Prime Minister Hamza Abdi said at the time.
According to NIRA, the Somali government aims to issue national ID cards to at least 15 million citizens, including children, by 2026.
President Hassan Sheikh Mohamud has previously described the IDs as “the backbone of national security,” highlighting how the lack of formal identification had long hindered Somalia’s ability to combat terrorism, investigate crime and protect public services.
