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June 26, 2013

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Leon Isaacs

Chris, I like the graphics and also your foresight on remittances. The current environment where banks are closing accounts for money transfer operators is actually a sad indictment on the current quality of regulatory policing. After all, in the UK most of the operators who are having their accounts closed are actually Authorised Payments Institutions under the PSD and monitored by the FCA. What more do this operators have to do to prove that their systems are appropriate given that the regulator must be satisfied with them given that they have received their licence?
If these accounts are closed then there is every chance that the payments will still flow - but illegally. This will drive a big hole through existing government policy and global AML/CFT approaches and therefore counter productive. It is not right that banks are asked to act as the policeman in this space and therefore we, at IAMTN, would like to seek and open and positive discussions with banks to agree a set of criteria/standards that would allow for accounts to be maintained by those operators that meet these standards.

neil burton

excellent graphics, thanks Chris and Anthemis.

a couple more stats:

Looked at from the perspective of the recipient nations, remittances account for more than 5% of Gross National Income in 28 countries. Since the average fee paid by a sender is up to 9%, for most of these countries, fees amounting to around 0.5% of GDP are ‘left on the table’. http://www.earthport.com/assets/uploads/2012/10/Earthport-Celent-Remittances_New_Retail_Banking_Segment.pdf

The UK receives about double the amount it sends. http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934-1199807908806/UnitedKingdom.pdf

If the cash-based incomes of the 400m people in Sub Saharan Africa earning <$10/day were 'electronified', that amounts to $50bn p.a. of liquidity. - SWIFT African Regional Conference, Gaborone, Botswana, 2013

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