Remittance companies form industry body

director/

20 November 2014
| By Mike |
image
image image
expand image

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

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 1 week ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 2 weeks ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

3 days 7 hours ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

2 weeks 4 days ago

ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager. ...

4 weeks ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5