(c) In order to address the concerns of remittance receiving States, registered alternative remittance systems should be obliged to settle balances through normal banking channels

Alternative remittance systems

There are different approaches to the problem, particularly between remittance source States and remittance receiving States.

Harnessing the Remittance Boom

SR VI. Alternative remittance

Alternative informal remittance systems

E. Alternative informal remittance systems

The impact of remittance income on household well being depends on who controls remittance income and how it is spent.

There are no alternate remittance systems.

The remittance flow continues to be buoyant.

As half of remittance senders and the majority of remittance recipients, women were playing a central role in managing and distributing such income.

Has this name been circulated to alternative remittance systems?

Some States have initiated registration or licensing regimes for alternative remittance systems, or plan to do so.

The Team makes no distinction between alternative and informal remittance systems for the purposes of this report.

I'm sorry, without an I.D. you cannot receive a remittance.

alternative remittance systems are difficult to licence or to supervise.

Furthermore, remittance levels are double those of official development assistance (ODA).

The remittance system of Hawala does not obtain in this jurisdiction.

For example, in commodity dependent and resource strapped Lesotho, remittance receipts represented about 27 per cent of GDP in 2001.

Hurdles in converting informal remittance systems to formal systems through registration or licensing

The ministers called on Member States that had made pledges to the Afghan People Assistance Fund to expedite the remittance of their donations in order to strengthen the Fund's resources thereby making it possible for it to more effectively contribute to the achievement of its intended noble humanitarian goals.

Alternative remittance systems are known by many terms, but all share the same operational characteristics.

Other forms of alternative remittance system, such as hundi or hawala, could be discussed here.

One State has recorded some success in encouraging the voluntary registration of alternative remittance systems.

It is not thought that licensing alone would prevent alternative remittance systems being used by terrorists.

Table 3 Private remittance flows to Africa, 1998 2003 (In billions of United States dollars)a

Many States may therefore need to amend their laws to bring informal remittance systems under regulation.

No money remittance agencies are operating outside the banks (see the answer to the question 1.6).

The regulatory authorities of some States have initiated programmes to detect unregistered or unlicensed alternative remittance activity.

(d) African authorities should view capital and remittance flows as an important part of their national economic statistics.

Although few States in their 1,455 reports acknowledged the existence of unregulated remittance systems within their jurisdiction, they are widespread.

(a) States not prepared to ban alternative remittance systems should be encouraged at least to register, and preferably to licence them, with prosecution available for all unregistered or unlicensed operators

The Team puts forth specific proposals to deal with the abuse by listed persons and other terrorists of, for example, charities and other non profit organizations and alternative remittance systems.

There would be fewer informal systems, and those remaining would have to be less secretive to compete for business with regulated remittance service providers, so allowing more scrutiny by authorities.

Its main focus is on strengthening the Somali remittance sector to increase its compliance with international financial regulations and laying the groundwork for the entry of a formal commercial banking sector.

Although any initiative that succeeds in bringing alternative remittance systems into better view is worthwhile, the Monitoring Team believes that there is scope for more coordination between source States and receiving States.

Please indicate the laws and procedures available to regulate alternative remittance systems, including systems of, or similar to, the kind known as hawala.

The principal remittance receiving States appear to prefer a soft, incentive based approach meant to improve public accessibility to the formal banking systems.

Lisa C. Carroll, Alternative remittance systems distinguishing sub systems of ethnic money laundering in Interpol member countries on the Asian continent , Interpol, 2003.

Improve Australia's terrorism financing regime through strengthening criminalisation of the financing of terrorism, ensuring coverage of alternative remittance dealers, wire transfers and cash couriers.

Law no 48 of June 26 2003 published in Official Gazette no 24831 of June 26 2003 regulates the operations of money remittance companies.

The CTC would appreciate receiving the number of money remittance agencies transfer services registered and or licensed in the Netherlands, Netherlands Antilles and Aruba.

The Team therefore endorses FATF Special Recommendation 6, which requires registration or licensing of all persons operating alternative remittance systems, to whom the other relevant 40 Recommendations should then apply, with penalties for non compliance.

The networks that allow some Somali warlords to channel funds for the procurement of arms comprise businesses operating in diverse economic sectors in trade, telecommunications, air transportation and money remittance services in Somalia and abroad.

The Monitoring Team believes that these States have all taken concrete and effective action to implement the financial measures with respect to alternative remittance systems.