Section 1 Short title
This Act may be cited as the “Somaliland Economic Access and Opportunity Act”.
Somaliland Economic Access and Opportunity Act
A BILL
To require the Secretary of the Treasury to submit to Congress a comprehensive report on barriers to Somaliland’s access to the United States financial system, and for other purposes.
Sec. 2 Findings and sense of Congress
Findings— Congress finds the following:
Somaliland occupies a strategically significant position in the Horn of Africa, adjacent to critical maritime routes in the Gulf of Aden.
Financial engagement with Somaliland has the potential to advance U.S. interests in regional security, and economic stability.
Somaliland faces legal, regulatory, and institutional barriers in accessing the United States and international financial systems, which may adversely impact remittances, trade, anti-money laundering efforts, and counter-terrorism financing.
The United States has a national security and humanitarian interest in ensuring that Somaliland’s financial sector operates with transparency, integrity, and compliance with international standards.
Sense of Congress— It is the sense of Congress that—
the United States should explore opportunities to promote stronger financial cooperation and transparency with Somaliland to encourage stability and expand economic engagement; and
enhanced financial access, conducted under appropriate compliance safeguards, would serve to strengthen U.S. policy objectives in the region.
Sec. 3 Report on barriers to Somaliland’s access to the United States financial system
Report required— Not later than 180 days after the date of enactment of this Act, the Secretary of the Treasury, shall submit to the Committees on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate a comprehensive report analyzing barriers to Somaliland’s access to the United States financial system.
Elements— The report required under subsection (a) shall include the following:
Identification and analysis of barriers— An examination of legal, regulatory, and policy barriers that limit Somaliland’s access to the United States financial system, including—
issues relating to Somaliland’s international recognition status;
compliance with “Know Your Customer” (“KYC”), anti-money laundering (“AML”), and counter-terrorism financing (“CTF”) standards; and
challenges related to remittance flows.
Recommendations for United States engagement—
Recommendations for steps the governing authorities of Somaliland can take to enhance compliance with international financial standards, including adherence to International Monetary Fund (“IMF”), World Bank, and Financial Action Task Force (“FATF”) norms.
Recommendations for steps the Government of the United States may take to facilitate financial access for Somaliland, including—
encouraging the Department of the Treasury to use the United States voice and vote at international financial institutions (including the IMF, World Bank, and FATF) to promote financial engagement with Somaliland;
evaluating whether World Bank and IMF resources are allocated to Somaliland in a manner consistent with its population and development needs; and
assessing the steps necessary to incorporate Somaliland into the SWIFT financial messaging and payment system.
Mitigation of illicit finance risks— Recommendations on mechanisms and technologies to prevent money laundering, terrorism financing, and other illicit activities in connection with remittances and U.S. financial system access, including guidance on information sharing, due diligence, and monitoring tools.
Consultation— The Secretary of the Treasury may—
in preparing the report required under subsection (a), engage directly with—
relevant officials of Somaliland, including officials from the—
Ministry of Finance and Economic Development;
Ministry of Foreign Affairs and International Cooperation;
Office of the Economic Advisor to the President; and
Central Bank of Somaliland; and
private-sector financial institutions and other stakeholders; and
if the Secretary determines it appropriate, engage directly with such officials in future dialogues.