Remittance companies form industry body
Companies operating in the Australian remittance industry have sought to counter the influence of the major banks by establishing their own industry organisation – the Australian Remittance and Currency Providers Association.
Announcing the establishment of the new body this week, Director and spokesperson, Dianne Nguyen, described it as having been formed to combat changes that could spell an end to the industry.
She said the industry had been fighting moves by Australian banks to shut down from 24 November 2014 all bank accounts used by MTOs to facilitate money transfers, because of the perceived risks associated with terrorism financing and money laundering.
Nguyen, said that the threat to the companies’ survival had been the catalyst for the traditionally fragmented industry to present a united voice and, if necessary, introduce stringent new compliance standards to apply across the industry.
“Today the money transfer industry is well regulated. Our members have close and co-operative relationships with the regulator and law enforcement agencies, which value the financial intelligence and data that our members provide as a matter of course,” she said.
“If the regulated industry is forced to shut down, money transfer activity will go underground and law enforcement agencies authorities lose any ability to track the money trail offshore. That presents a national security risk,” Nguyen claimed.
She said that while the industry understood the banks’ desire to mitigate risk, it believed terminating money transfer operators was an over-reaction.
“We are calling on the banks to suspend their decision and enter into a collaborative engagement with the money transfer industry, AUSTRAC and law enforcement agencies. We want to work together toward a new regulatory framework that meets the needs of all stakeholders,” Nguyen said
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