Sending money to Somalia: costs and rules

Average cost by corridor

The World Bank Remittance Prices Worldwide (RPW) database publishes Q3 2025 averages for sending money to Somalia from the United Kingdom and the United States ^1,2. Total cost is the transfer fee plus the exchange rate margin ³. RPW shows no Q2 2025 average for these corridors ^1,2.

• For £300 sent from the United Kingdom, the average fee was £6.48 and the average total cost 6.12%, or £18.37 ¹.

A zero margin on the US corridor

RPW shows an average exchange rate margin of 0.00% for both amounts sent from the United States, so the average total cost equals the average fee ². The World Bank says exchange rate costs may be missing from its data when remittances are paid in dollars ⁴.

On the United Kingdom corridor the average margin was 3.96%, on top of a £3.28 average fee ¹.

Providers in each sample

The United States sample lists five services, all from money transfer operators (MTOs) ². For US$200, Western Union had the lowest total cost at 4.00% ². Kaah Express, Tawakal Express, Iftin Express and Dahabshiil each showed 6.00% ².

The United Kingdom sample lists 17 services for £120, all from MTOs ¹. Total cost ranged from 3.89% for Western Union transfers paid by bank account, credit card or debit card to 18.22% for a Western Union cash transfer made at an agent ¹.

Central Bank of Somalia rules

The Central Bank of Somalia regulates money transfer businesses under the Financial Institutions Law No. 130 of 2012 ⁵. Two regulations set out the main rules ^5,6:

• The Financial Institutions (Money Transfer Business Licensing) Regulations, 2014 apply to persons who own or control a money transfer business, other than banks authorized to conduct banking business in Somalia ⁵.
• The 2014 regulations define a money transfer business, or hawala, as accepting cash or payment instruments in one place and paying a corresponding sum to a beneficiary in another ⁵.
• Applicants pay a non-refundable application fee of US$1,000 and lodge a performance security of US$60,000, or another amount the central bank prescribes ⁵.
• Failing to license a money transfer business is an offence ⁵.
• The Regulation on Money Transfer Business Operations, 2016 requires written disclosure of the fees, charges or commissions and other conditions that apply ⁶.
• Customers are entitled to a receipt for any money transfer, and agents may not charge fees beyond those agreed at the start of the transaction ⁶.
• Businesses must offer a complaints mechanism and keep records for at least five years ⁶.

What the averages leave out

The 2016 operations regulation contains no rule on disclosing exchange rates to customers ⁶. RPW prices are collected by researchers posing as customers ⁴. Fees and taxes charged in the receiving country may not be tracked in the database ⁴.

The UN SDGs commit to making it possible to send remittances for 5 percent or less in every corridor by 2030, according to the World Bank report ³.