Why Do International Money Transfers Need To Be Regulated?
Finance is a highly regulated industry, thus banks, money service providers, and other businesses dealing in international money transfer must follow a complicated set of laws and regulations. These are kept in place to prevent fraud, money laundering, and the funding of unlawful activities.
There are limits on international money transfers depending on the country, thus it is essential to understand the regulations of the sending or receiving country. Each nation, bank, and remittance method has its own set of restrictions, thus transferring money in Canada or the United States may be significantly different from sending money in Japan or Vietnam.
If you need to make or receive an international transfer, you should be aware of the regulations governing international money transfers and how they may affect you.
Read more: Underground International Money Transfer | EzyRemit
How To Tell If An International Money Transfer Company Is Regulated?
If you want to perform a transaction through an international money transfer company, you should only do so with those that are permitted by the regulatory authority of the country concerned. The same is true for financial institutions and businesses wishing to collaborate with a FinTech firm to simplify their cross-border payment operations.
All regulated financial institutions must post pertinent information on their websites. This is often found at the bottom of the page. However, some sites may have a specialized page that states their governing authority or gives further information. If that information is vague or not easily accessible, that is a telltale sign that the financial institution is not trustworthy.
What Are The Global Regulations For International Money Transfers?
International Money Transfer from the United States
The United States is the world's top remittance sender. Only within 2020, the United States received $6.1 billion in remittances and transferred $68 billion overseas. With transactions that span the globe, the majority of Americans who transfer money internationally are working migrants who send money back to their relatives in their native countries. Each of those nations has millions of families supported by relatives who moved and established in the United States.
Consumer Financial Protection Bureau (CFPB)
The Consumer Financial Protection Bureau (CFPB), an independent federal organization that protects customers who do any type of financial transaction, regulates all remittance flows from the United States.
The aim of the CFPB is to make financial markets more accessible for consumers, to enforce relevant rules, and to enable people to take greater control over their economic life. Today, the CFPB is in control of all overseas transactions exceeding $15,000.
International Money Transfer from the United Kingdom
If you reside in the United Kingdom, you are among the top remittance countries in the world, just right behind America and Canada, where migrants send over $20 billion USD to their families and friends each year. According to World Bank analysts, remittance flows might be much greater because many individuals avoid banks and huge money-transfer corporations.
The United Kingdom leads not just in sending, but also in receiving remittances. Because the remittance industry is made up of many small participants as well as major financial institutions, the UK government maintains a tight check on the security of its remittance channels, monitoring any suspicious behavior in the remittance process.
Financial Conduct Authority (FCA)
The Financial Conduct Authority (FCA) is a non-governmental regulatory organization in the United Kingdom. The FCA oversees the financial services industry in the United Kingdom. Its responsibilities include safeguarding customers, maintaining industry stability, and encouraging healthy competition among financial service providers.
The FCA is in charge of overseeing the operation of consumer investments, pensions, savings, loans, credit cards, mortgages, and bank accounts. The regulating authority guarantees that consumers are treated properly, that necessary services are provided, and that customer protection takes precedence above profit.
The FCA also monitors the businesses it has certified to ensure that they continue to satisfy the highest standards. Learning the subtleties of how each organization runs is a part of the monitoring process. Understanding the latest technology and services available to customers is part of this.
International Money Transfer from Australia
Australia is another country that makes extensive use of remittance services.
According to the World Bank, Australia remitted US$ 16.8 billion in 2017. The top three countries that receive the highest remittances from Australia are China ($2.92 billion), India ($1.94 Billion), and Vietnam ($1.18 billion).
Australian Transaction Reports and Analysis Centre (AUSTRAC)
AUSTRAC is the Australian Government agency in charge of discovering, preventing, and disrupting illegal financial system exploitation in order to safeguard the community from severe and organized crime.
AUSTRAC has implemented a number of rules and obligations, including reports on International Funds Transfer Instructions (IFTIs), Suspicious Matter Reports (SMRs), Threshold Transaction Reports (TTRs), and compliance with Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) regulations, including the maintenance of an AML/CTF Program.
AUSTRAC can help international money transfer clients by detecting fraudulent transactions that leave their accounts. In specific circumstances, AUSTRAC may assist in tracing misplaced funds in order to recover them for money transfer clients. However, it is not always possible to reverse or stop unlawful behavior - AUSTRAC tries its utmost to safeguard the general people and companies alike.
Australia Securities & Investments Commission (ASIC)
The Australian Securities and Investments Commission Act of 2001 led to the creation of ASIC. It is an independent governing organization in charge of monitoring financial services and markets in Australia.
ASIC offers consumer education that money transfer firm clients may use to learn how the regulatory agency protects them. They also offer basic guidance on money management and smart money-saving measures.
International Money Transfer from Canada
Canada is the fourth largest sender of remittances around the world after the USA and UK. In 2020, Canada remitted $6.5 billion in remittances to other countries throughout the world. With a rising immigrant population in Canada, remittance outflows from the country have increased. According to the 2016 census, there are over 7.5 million immigrants in Canada, accounting for approximately 20% of the total population. The immigrant population is made up of wealthy people who donate money to low- and middle-income nations.
Financial Transactions and Reports Analysis Centre of Canada (FINTRAC)
FINTRAC is the Canadian government's national financial intelligence agency.
EzyRemit is a reliable online international money transfer company that is licensed and controlled by the Australian Transaction Reporting and Analysis Centre (AUSTRAC), the Australian Securities and Investments Commission (ASIC), and the Financial Transactions and Reports Analysis Center of Canada (FINTRAC).
EzyRemit offers online remittance platforms such as money transfer, international education transfer, and EzyCash Passport for travelers. You may put your trust in us to transfer money for you with confidence.
