A report seen by Reuters shows that suspected arms dealers moved more than $3.5 million using Somali money transfer systems.
The report was prepared by the Global Initiative Against Transnational Organized Crime, a research group based in Geneva, Switzerland.
According to the report, huge sums of money were moved by the arms dealers over a long period of time.
However, the finding by the Geneva-based group could put a dent in efforts by the money transfer firms in Somalia to access international banking services.
The Central Bank of Somalia has denied knowledge of the transfers.
Nevertheless, as the institution tasked with the job of regulating money transfer firms, it has vowed to investigate the issue further.
Four Somali money transfer companies were mentioned in the report. Each of them told Reuters that they operated above board and complied with the applicable global standards.
Global Initiative Against Transnational Organized Crime based its report on six years of records of transactions from Somalia’s city of Bossaso.
It highlighted 176 transactions linked to suspected dealers in Yemen and Somalia.