Remittances are the backbone of Somalia’s economy, providing between 1.3 and 2 billion dollars each year from the Somali diaspora. These funds exceed all humanitarian and development aid combined and support millions of families, many of whom are unemployed. Yet this crucial system is under increasing strain due to stricter compliance with anti money laundering and counter financing of terrorism regulations.Most remittance service providers are small businesses or hawalas, often run by a single person. Complying with complex banking requirements is costly and difficult. International banks, wary of regulatory risks, have increasingly cut ties with remittance companies rather than managing compliance. This has left many providers unable to access the global financial system, especially since most Somalis do not have formal bank accounts and rely on mobile money transfers.The stakes are high. Without access to bank channels, remittance flows risk being driven underground, increasing the likelihood of unregulated and unsafe transfers. With Somalia facing its worst drought in 40 years and global economic shocks from COVID‑19 and the war in Ukraine, access to remittances is more vital than ever. Reforming compliance rules and supporting legal remittance channels would protect this lifeline for Somalia’s most vulnerable communities.