Somaliland Economic Access and Opportunity Act

Congress finds the following:

(1) Somaliland occupies a strategically significant position in the Horn of Africa, adjacent to critical maritime routes in the Gulf of Aden.

(2) Financial engagement with Somaliland has the potential to advance U.S. interests in regional security, and economic stability.

(3) 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.

(4) 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.

It is the sense of Congress that—

(1) the United States should explore opportunities to promote stronger financial cooperation and transparency with Somaliland to encourage stability and expand economic engagement; and

(2) enhanced financial access, conducted under appropriate compliance safeguards, would serve to strengthen U.S. policy objectives in the region.

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.

The report required under subsection (a) shall include the following:

An examination of legal, regulatory, and policy barriers that limit Somaliland’s access to the United States financial system, including—

(A) issues relating to Somaliland’s international recognition status;

(B) compliance with Know Your Customer (KYC), anti-money laundering (AML), and counter-terrorism financing (CTF) standards; and

(C) challenges related to remittance flows.

(A) 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.

(B) Recommendations for steps the Government of the United States may take to facilitate financial access for Somaliland, including—

(i) 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;

(ii) evaluating whether World Bank and IMF resources are allocated to Somaliland in a manner consistent with its population and development needs; and

(iii) assessing the steps necessary to incorporate Somaliland into the SWIFT financial messaging and payment system.

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.

The Secretary of the Treasury may—

(1) in preparing the report required under subsection (a), engage directly with—

(A) relevant officials of Somaliland, including officials from the—

(i) Ministry of Finance and Economic Development;

(ii) Ministry of Foreign Affairs and International Cooperation;

(iii) Office of the Economic Advisor to the President; and

(iv) Central Bank of Somaliland; and

(B) private-sector financial institutions and other stakeholders; and

(2) if the Secretary determines it appropriate, engage directly with such officials in future dialogues.