Due to the security and governance situation in Somalia, the Somali authorities do not have the capacity to either track or freeze the assets of pirates operating in Somali waters within Somalia.
The Foreign and Commonwealth Office and HM Treasury are working with international institutions and partners to analyse the possible financial measures that could be used to combat the problem. A key part of this work consists of identifying the points at which the proceeds of acts of piracy are laundered through the international financial system, and what the most appropriate steps are for tackling this. Given that Somalia lacks a well-established banking system, this is likely to require the co-operation of regional partners.
Once the new Transitional Federal Government has further established itself in Somalia, the UK and international partners will work with them to address this issue along with wider counter piracy action.