Money Transfers: Promoting Legal Channels – Opinion

International remittance channels like ACE Money Transfer and banks with an extensive network across Pakistan like Bank Al Habib are major contributors to a steadily increasing inflow of funds. In line with the vision of the Pakistan Remittance Initiative (PRI), the two partners have stepped up their efforts to promote legal remittance channels by offering free, easy, fast and secure transfers from the UK, Europe, Canada, Australia and Switzerland.

“A mega awareness campaign, including over 950 buses across the UK, over 100 roadside posters and 25 underground Tube stations across London, is underway, educating the expat community on the downsides of the sidewalk market (hawala/hundi) which lead to risky and undocumented transfers. This will help educate customers on the benefits of using a legal and trusted channel for money transfer. »

Pakistan is the 5th largest recipient of remittances in the world in the list of low to middle income countries. The country received more than $31 billion in FY22, which helped keep millions of households running and supporting its economy simultaneously. Undoubtedly, remittances prove to be a lifeline for the 9 million Pakistani overseas workers spread across the world who work hard, earn and send money from foreign countries, keeping a glimmer of hope for their loved ones back home.

Generally, international money transfer is a time-consuming process, a pressing concern for expats around the world. An extensive network of over 1050 Bank Al Habib branches across Pakistan, combined with ACE Money Transfer’s advanced technology, has solved this problem effectively, making transfers to Pakistan possible in as fast as 7 seconds.

Moreover, the solution is developed to provide an immersive and user-friendly digital platform that provides convenience to customers. People can send money home from anywhere in the world as a bank deposit or cash pickup, and recipients can withdraw funds 24 hours a day, on weekends and even days. holidays.

Apart from the hidden fees, the high transfer fees impose an additional financial burden on expats. With this campaign, FREE money transfers on cross-border transactions are offered regardless of the amount of money sent to the country.

A customer usually turns to the curbside market (hawala/hundi), considering that regulated channels would involve high taxes and unusual costs. However, they end up losing huge amounts of money due to hidden fees, low exchange rates, and various other fees that unauthorized services usually charge. On top of that, this practice puts their hard-earned money at risk of being lost without any liability.

On the other hand, regulatory bodies like FCA-UK, AUSTRAC-Australia and FINTRAC-Canada, and the State Bank of Pakistan ensure the implementation of strict compliance policies; creating a secure remittance ecosystem for over 4 million Pakistani expats living in the UK, Europe, Canada and Australia.

Money transfer companies, banks and regulators are playing their part in combating the unregulated remittance market. The continuous development of remittance technology and the incentives offered by the State Bank of Pakistan are facilitating increased remittances to banks in Pakistan.

Copyright Business Recorder, 2022

About Charles D. Goolsby

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