Alternative remittance systems

Harnessing the Remittance Boom

SR VI. Alternative remittance

Alternative informal remittance systems

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

E. Alternative informal remittance systems

There are no alternate remittance systems.

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

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?

(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

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

alternative remittance systems are difficult to licence or to supervise.

They should also adopt specific policies to affect volumes of remittances, remittance transfer mechanisms, management of remittance funds, the use of remittances and diaspora contributions to development.

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

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

(a) Simplifying procedures and facilitating access to formal means of remittance transfers

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

Initiatives were also needed to improve remittance services to migrants and reduce transfer costs.

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.

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 also seeks to identify individuals and businesses that provide alternative remittance services, including those that have not engaged with the Unit as required by law.

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 exploitation of Alternative Remittance Systems such as trade based money, hawala and NGOs are addressed.

Encourages Governments and other relevant stakeholders to consider adopting measures, in accordance with national legislation, that facilitate migrant remittance flows to recipient countries, including through, inter alia

In that context, the International Organization for Migration (IOM) was undertaking policy research in order to equip governments with the capacity to define comprehensive remittance management policies.

Encourages Governments and other relevant stakeholders to consider adopting measures, in accordance with national legislation, that facilitate migrant remittance flows to recipient countries, including through, inter alia

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

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

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

2. Encourages Governments and other relevant stakeholders to consider adopting measures, in accordance with national legislation, that facilitate migrant remittance flows to recipient countries, including through, inter alia

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

The main goal is to detect the main obstacles to efficiency along the life cycle of the remittance.

An improved knowledge base was needed in order to formulate effective remittance management strategies that would enhance development.

c Includes an amount of 5,021,565.28 from the remittance account that was cleared in the subsequent accounting period.

At present there are no specific provisions to authorize or regulate the activities of money remittance or transfer services.

(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.