International money transfer is a key component of global finance. By giving immigrants and expatriates a channel through which to send money home, it is a key source of income for most developing nations. The sector has however suffered greatly worldwide; due to stringent measures and controls introduced by banks globally (‘de-risking’) to combat money laundering and terrorist financing. This ‘de-risking’ or closure of remittance business bank accounts in Australia has left the hitherto robust and vibrant sector reeling and fighting for its very survival. According to industry sources, many hundreds of small remittance businesses have had to close since 2014
The role played by banks
In conclusion, if a cash remittance service provider observes these guidelines, they should be compliant and not have any issues with regulators or banks. The barriers and difficulties are not only limited to Australia, and we note similar issues arising worldwide.