How a banking app in Darfur spotlights Sudan's emerging 'dual economy'

Experts and bankers have warned about the ongoing financial fragmentation in Sudan, following the emergence of new banking and financial apps being used in western Sudanese states under the control of the Rapid Support Forces (RSF).

The experts argue these banking apps do not clearly inform users of their liability and do not comply with legal and financial standards under local and international regulations governing banking activities, including measures to prevent terrorism financing and money laundering.

A group of businessmen launched a new banking app in the Darfur region under the name "Al-Mustaqbal for Banking and Financial Services", starting in January this year, in areas under RSF control.

The move sparked widespread debate over the emergence of two separate financial systems in Sudan, a step the Central Bank of Sudan had previously described as "illegal".

The central bank issued an official warning on 28 January 2026 over the spread of unlicensed electronic financial applications in South Darfur state, confirming that the entity involved holds no licence to conduct financial or banking activities in Sudan.

The bank said in a statement that the Central Bank of Sudan is the only authority legally mandated to issue banking licences and that any dealings with this entity or its platforms constitute a clear violation of national laws, including the 2014 Anti-Money Laundering and Counter-Terrorism Financing Act.

The bank urged citizens and legal entities not to deal with the entity under any circumstances, warning of serious risks, including the absence of legal recourse in cases of data breaches or lost passwords, and the lack of guarantees for funds deposited or transferred.

It also warned that such practices violate international agreements aimed at preventing the financing of arms proliferation.

Financial division

By contrast, some businessmen and traders in Darfur described the new app as a "practical solution" after a long struggle with restrictions on financial transfers that disrupted commercial activity and caused tangible losses.

A trader in South Darfur, Mortada Ibrahim, said that since the outbreak of the war, electronic banking services had shifted from a tool designed to facilitate transactions into "a security-based instrument of discrimination" used by all parties.

The Darfur region is facing a complex currency crisis, as transactions continue to rely on old paper currency after the Sudanese government changed the 1,000-pound and 500-pound banknotes the previous year. Most of the currency currently circulating in the region consists of old 500-pound notes without serial numbers.

Despite this, the RSF imposed them as a legally valid tender and forced traders to accept them.

Absent international oversight

Banker Ahmed Abdallah said that establishing a financial app without approval from the relevant authorities constitutes a clear violation of Financial Action Task Force (FATF) rules on combating terrorism financing and money laundering.

He said banks are obliged to comply with these standards to ensure deposit security, noting that any dealings with "the Al-Mustaqbal" app would be extremely limited and would expose users to risks of looting and loss without legal protection.

With official banks halted in Darfur, a wide segment of citizens and major traders rely on the Bankak app operated by the Bank of Khartoum.

However, the RSF has imposed strict monitoring on its users, going so far as to jail several state employees, claiming they received salaries from the central government in Port Sudan through the app.

This has worsened the severe liquidity crisis and further complicated commercial transactions.

Dual economy

International reports cited by the TRT Africa platform said developments in Darfur reflect early signs of "a dual economy" emerging in Sudan, with areas managed through parallel financial systems that include customs collection and salary payments outside the central bank's authority. This has fuelled fears of "fragmented financial sovereignty".

Banking expert Najm al-Din al-Tayeb told Al-Araby Al-Jadeed, the Arabic-language sister publication to The New Arab, that establishing a new banking entity faces major obstacles. Without issuing a dedicated currency, liquidity cannot be controlled, and even if such a currency were issued, it would not be recognised across the rest of Sudan, which is the main market for Darfur products. Moreover, this could expose the region to economic boycott.

Banking affairs specialist Ahmed Khalil told Al-Arabi Al-Jadeed that the move was a natural response to the public's need for services in the absence of banking institutions.

He said that stability in Darfur, which leads to exports of livestock and gum arabic, requires organising commercial and financial activities to ease citizens' suffering and meet the needs of companies and businessmen.