By Zakaria Hassan - Reporter
Somalia, 4 January 2026 For 14 years, people in Somalia could send money to each other without revealing their identities. Not anymore.
Hormuud Telecom, Somalia's dominant telecommunications provider, quietly activated a feature in its EVC mobile money platform that now displays recipients' full names before transactions are completed.
For millions of Somalis who have grown accustomed to financial privacy, this shift represents more than a technical update, it’s a signal that the government finally has leverage over the digital economy that once operated beyond its control.
The move comes as Somalia prepares for an even more sweeping reform: by 2026, every SIM card in the country must be registered to a National ID issued by the National Identification and Registration Authority (NIRA).
Together, these measures are pulling Somalia's informal financial system into the light, with implications that reach from anti-money laundering compliance to the daily transactions of ordinary citizens.
Hormuud Telecom sees the new feature as being in line with international standards for mobile money and aimed at enhancing security and user experience.
Yasin Hassan, Head of Corporate Communications at Hormuud Telecom, told Dawan Africa: "Hormuud Telecom continues to lead the way in mobile money innovation, as well as new regulatory adoption ensuring that every transaction is not only secure but also transparent. By aligning with international standards, this new feature enhances both security and user experience for millions of Somali users."
"At Hormuud Telecom, we are committed to improving the financial experience for our customers. Displaying recipients' full names before transactions is a key step in enhancing security and trust, while ensuring we meet the highest global standards in mobile money services,” he added.
A System Born out of necessity
The story of Somali Mobile Money dates back to 2007. There was a big shortage of Somali Shilling, let alone the US dollar. In 2009 Hormuud Telecom launched Zaad, its first mobile money service, with full name display enabled. However, Al-Shabaab, which controlled large swaths of territory, immediately banned the service. Their rationale was straightforward: transparency was a threat.
"Al-Shabaab saw it as a surveillance tool," explained Mohamed Ibrahim, Security and Defense Editor for Dawan TV. "They knew that if transactions could be traced, their financing networks would be exposed."
Hormuud's response was pragmatic. The company launched EVC, a new mobile money platform with anonymous transactions capped at $300. EVC quickly became the country's financial backbone, processing everything from salary payments to remittances to daily commerce.
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By 2025, EVC processed over $3 billion annually in transactions, making it the most widely used mobile money service in Somalia, according to industry reports from the National Communications Authority (NCA).
The Balance of Power Shifts
So, what has changed? According to officials and industry insiders, the obvious answer is that the government has become stronger, and Al-Shabaab weaker in the recent years.
"The security situation has improved significantly in key urban areas," said Mustafa Yasin Sheikh, Director General of the National Communications Authority (NCA). "This has given us the space to enforce regulations that would have been impossible five years ago."
Yasin pointed to the government's expanding control over major cities and the ongoing military operations that have pushed Al-Shabaab out of strategic areas. While the group remains a potent force, particularly in rural regions, its ability to dictate terms to major corporations has diminished.
"Transparency is essential to building trust in Somalia's digital systems," Yasin told Dawan Africa. "Linking digital services to verified identities protects consumers and strengthens accountability. Using a National ID issued by NIRA will be required soon for more services, reinforcing a secure and trusted digital environment."
The implications extend far beyond consumer protection. Somalia has been effectively locked out of the international financial system for decades, with banks hesitant to process transactions from a country associated with money laundering, terrorism financing, and weak regulatory oversight.
Financial transparency is a prerequisite for rejoining the international financial system. The Financial Action Task Force (FATF), the global money laundering and terrorist financing watchdog, has repeatedly flagged Somalia for deficiencies in its financial controls.
Without credible Know Your Customer (KYC) systems, Somalia cannot access international correspondent banking relationships, foreign investment, or many forms of development financing. As of 2024, Somalia remains on the FATF's "grey list," complicating its efforts to attract international financial partners.
The NIRA system is still in its early stages, and many Somalis, particularly in rural areas and among nomadic populations, have not yet obtained national IDs. The 2026 deadline for SIM card registration could effectively cut millions of people off from mobile money services they depend on for survival.
According to NIRA, only 20 per cent of Somalia's adult population had obtained a national ID by late 2024, leaving significant work to be done in the year leading up to the registration deadline.
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