A report into Somalia's popular money transfer systems has found that more than $3.5m ($2.7m) in cash has been moved between suspected weapons traffickers in recent years.

The Global Initiative Against Transnational Organized Crime alleges that a prominent Yemeni arms supplier was able to receive hundreds of thousands of dollars in remittances despite being under US sanctions.

The findings could further hinder attempts by Somali transfer companies to work with international banks which fear flouting anti-money laundering regulations.

In response to the report, four Somali companies told the Reuters news agency that they did their best to comply with global regulations.