The Central Bank of Somaliland has issued a strong public warning over increasingly sophisticated financial scams, urging citizens to exercise extreme caution before investing their money in schemes promising quick and unusually high returns.
Central Bank Governor Abdinasir Ahmed Hirsi said Somaliland’s security institutions—including the prosecution service, police and intelligence agencies—are working jointly to combat financial crimes, with the Central Bank playing a leading role in coordinating the effort.
“We have established an office with full authority to coordinate these efforts,” Governor Abdinasir said, explaining that the institution works with relevant authorities from the initial investigation through to the final stages of prosecution before the courts.
The Governor revealed that two major financial-crime cases had emerged in Somaliland over the past year.
One involved an application known as AGGA, allegedly operated by a Chinese group over a period of seven months. The scheme reportedly affected approximately 500 citizens, with losses estimated at $2.7 million. Five individuals were convicted in connection with the case.
A second case, known as Alpha Planet Bridge, is currently before the courts, with four people facing charges, according to the Governor.
‘There Is No Easy Money’
Governor Abdinasir warned that financial scams are becoming increasingly common partly because some members of the public are attracted to promises of making money quickly and effortlessly.
He explained that many of these schemes do not generate legitimate profits. Instead, money paid to one participant is often taken from another, creating a cycle in which funds simply circulate without a genuine underlying business or source of income.
The Governor urged citizens to carefully investigate where they place their savings and investments, particularly when confronted with programs promising extraordinary returns simply for depositing money.
He specifically warned Somaliland citizens against fraudulent investment platforms that claim, in effect, “deposit this amount and receive this much profit.”
Religious Warning Over ‘Easy Money’
Sheikh Almis Haji Yahye, who also addressed the issue, warned the public about the religious and ethical dangers associated with schemes offering effortless financial returns.
He argued that such arrangements are not legally permissible and can resemble gambling, particularly where an individual deposits money and expects to receive profits without engaging in legitimate economic activity.
According to Sheikh Almis, earning money simply by depositing funds and waiting for returns, without a lawful and productive source of profit, is haram (religiously prohibited) under Islamic principles.
The warnings from Somaliland’s financial and religious authorities come amid growing concern over fraudulent investment schemes targeting members of the public with promises of fast and easy wealth.
The Central Bank is urging citizens to think carefully before handing over their money, verify investment opportunities and remain vigilant against sophisticated financial fraud.