Somalia to Require National Digital ID for Banking in Benadir Starting September

Somalia’s Central Bank has announced that beginning September 1, 2025, all residents in the Benadir region – including the capital Mogadishu – must present a national digital ID to open or update bank accounts. The new requirement is part of a broader effort to modernize the country’s financial sector and tighten anti-fraud controls.

The directive, issued this week, was developed in collaboration with the National Identification and Registration Authority (NIRA) and the Somali Bankers Association. According to the Central Bank of Somalia (CBS), it represents a major shift toward standardized, government-issued identity verification across all financial institutions. The rule is set to be rolled out nationwide in phases following its implementation in Benadir.

Only NIRA-issued National Identification Cards will be accepted for banking transactions under the new regulation. “This measure introduces a standardized, government-issued identification requirement across all financial institutions, thereby closing longstanding gaps in identity-verification frameworks,” said CBS in a formal announcement. The move is expected to strengthen Know Your Customer (KYC) and Customer Due Diligence (CDD) protocols while helping Somalia align with global anti-money laundering (AML) and counter-terrorism financing (CFT) standards.

Digital ID Integration Gains Momentum

The policy follows Somalia’s launch of three national digital identity systems on May 7, 2025: the HUBIYE Verifier, the e-Aqoonsi mobile ID app, and the Certificate Delivery System. These platforms form the foundation for the country’s digital public infrastructure and are now being integrated into critical sectors such as finance and social services.

The banking mandate also builds on an existing partnership between NIRA and the Somali Bankers Association, formalized by a memorandum of understanding signed on August 25, 2024. The partnership aims to incorporate biometric digital ID into banking workflows to improve identity verification, reduce fraud risk, and enhance access to financial services.

Implications for Financial Inclusion and Security

The CBS noted that the digital ID requirement will play a crucial role in protecting Somalia’s financial institutions from illicit activity while enabling better oversight of transactions. This includes enhanced capabilities for detecting and reporting suspicious activity, supporting national security, and improving confidence in Somalia’s financial system.

The regulation is likely to have wide-reaching effects on financial inclusion and remittance flows, especially in a country where mobile and digital banking services are widely used. Government officials emphasized that improving identity standards is a key step toward increasing trust and transparency in the financial sector, both domestically and with international partners.

Sources: Techlabari, Sonna, Hiiraan

–

By the ID Tech Editorial Team