Somalia makes national digital ID mandatory for banking transactions from Sept. 1

A new rule will soon go into effect in Somalia mandating citizens wishing to open a new bank account or update an old one to present a national digital ID issued by the National Identification and Registration Authority (NIRA).

The Central Bank of Somalia (CBS) issued a statement on July 29 informing citizens of this move which it says is supported by NIRA and the Somali Bankers Association.

In the statement shared with Biometric Update, the Central Bank says the move, which will take effect from September 1, beginning in the Benadir region, is part of efforts by the government to strengthen identity verification mechanisms and bolster account security. From Benadir, the measure will be progressively rolled out in the rest of the country.

“This decision by the Central Bank follows a directive issued by the Prime Minister of the Federal Government of Somalia, H.E. Hamza Abdi Barre, which requires all governmental and private institutions to integrate the National Identification System into the provision of essential services,” a part of the statement reads.

“Bank customers whose identification has expired must renew their account information using the NIRA-issued National ID,” the CBS directed, adding that “these changes are part of the implementation of CBS’s electronic Know Your Customer (eKYC) framework, which aims to enhance the security and integrity of customer identity verification processes in the financial sector.”

In addition, authorities say the move is also to strengthen transparency and accountability in the national financial system, prevent fraudulent use of banking services through false or unverifiable IDs, and facilitate more efficient and secure customer service in the banking sector.

In line with the measure, the CBS is encouraging Somalis to continue showing up to register for the national digital ID either at bank branches designated and authorized by NIRA or at NIRA service centers.

The Authority is standing up Somalia’s national digital ID with financial support from the World Bank.

NIRA has also been drumming the need for stronger national digital ID update, as the country aims to enroll at least 15 million people in the next four years.

Recently, the government also made the national ID mandatory for obtaining a driver’s license and other documents from the Transport ministry.

Article Topics

biometric identification  |  biometrics  |  digital ID  |  financial services  |  identity verification  |  KYC  |  national ID  |  NIRA Somalia  |  Somalia