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Migrant Remittance Flows
Findings from a Global Survey of Central Banks

Jacqueline Irving Sanket Mohapatra Dilip Ratha

THE WORLD BANK

W O R L D

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MigrantȱRemittanceȱFlowsȱ
FindingsȱfromȱaȱGlobalȱSurveyȱofȱCentralȱBanksȱ
JacquelineȱIrvingȱ SanketȱMohapatraȱ DilipȱRathaȱ
ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ

Copyrightȱ©ȱ2010ȱ TheȱInternationalȱBankȱforȱReconstructionȱandȱDevelopment/TheȱWorldȱBankȱ 1818ȱHȱStreet,ȱN.W.ȱ Washington,ȱD.C.ȱ20433,ȱU.S.A.ȱ Allȱrightsȱreservedȱ ManufacturedȱinȱtheȱUnitedȱStatesȱofȱAmericaȱ FirstȱPrinting:ȱAprilȱ2010ȱ Printedȱonȱrecycledȱpaperȱ ȱ 1ȱ2ȱ3ȱ4ȱ ȱ ȱ 13ȱ12ȱ11ȱ10ȱȱ ȱ Worldȱ Bankȱ Workingȱ Papersȱ areȱ publishedȱ toȱ communicateȱ theȱ resultsȱ ofȱ theȱ Bank’sȱ workȱ toȱ theȱ developmentȱcommunityȱwithȱtheȱleastȱpossibleȱdelay.ȱTheȱmanuscriptȱofȱthisȱpaperȱthereforeȱhasȱnotȱ beenȱ preparedȱ inȱ accordanceȱ withȱ theȱ proceduresȱ appropriateȱ toȱ formallyȬeditedȱ texts.ȱ Someȱ sourcesȱ citedȱinȱthisȱpaperȱmayȱbeȱinformalȱdocumentsȱthatȱareȱnotȱreadilyȱavailable.ȱȱ Theȱfindings,ȱinterpretations,ȱandȱconclusionsȱexpressedȱhereinȱareȱthoseȱofȱtheȱauthor(s)ȱandȱdoȱ notȱ necessarilyȱ reflectȱ theȱ viewsȱ ofȱ theȱ Internationalȱ Bankȱ forȱ Reconstructionȱ andȱ Development/Theȱ WorldȱBankȱandȱitsȱaffiliatedȱorganizations,ȱorȱthoseȱofȱtheȱExecutiveȱDirectorsȱofȱTheȱWorldȱBankȱorȱ theȱgovernmentsȱtheyȱrepresent.ȱȱ Theȱ Worldȱ Bankȱ doesȱ notȱ guaranteeȱ theȱ accuracyȱ ofȱ theȱ dataȱ includedȱ inȱ thisȱ work.ȱ Theȱ boundaries,ȱcolors,ȱdenominations,ȱandȱotherȱinformationȱshownȱonȱanyȱmapȱinȱthisȱworkȱdoȱnotȱimplyȱ anyȱ judgmentȱ onȱ theȱ partȱ ofȱ Theȱ Worldȱ Bankȱ ofȱ theȱ legalȱ statusȱ ofȱ anyȱ territoryȱ orȱ theȱ endorsementȱ orȱ acceptanceȱofȱsuchȱboundaries.ȱ Theȱmaterialȱinȱthisȱpublicationȱisȱcopyrighted.ȱCopyingȱand/orȱtransmittingȱportionsȱorȱallȱofȱthisȱ workȱ withoutȱ permissionȱ mayȱ beȱ aȱ violationȱ ofȱ applicableȱ law.ȱ Theȱ Internationalȱ Bankȱ forȱ Reconstructionȱ andȱ Development/Theȱ Worldȱ Bankȱ encouragesȱ disseminationȱ ofȱ itsȱ workȱ andȱ willȱ normallyȱgrantȱpermissionȱpromptlyȱtoȱreproduceȱportionsȱofȱtheȱwork.ȱ Forȱpermissionȱtoȱphotocopyȱorȱreprintȱanyȱpartȱofȱthisȱwork,ȱpleaseȱsendȱaȱrequestȱwithȱcompleteȱ informationȱ toȱ theȱ Copyrightȱ Clearanceȱ Center,ȱ Inc.,ȱ 222ȱ Rosewoodȱ Drive,ȱ Danvers,ȱ MAȱ 01923,ȱ USA,ȱ Tel:ȱ978Ȭ750Ȭ8400,ȱFax:ȱ978Ȭ750Ȭ4470,ȱwww.copyright.com.ȱ Allȱ otherȱ queriesȱ onȱ rightsȱ andȱ licenses,ȱ includingȱ subsidiaryȱ rights,ȱ shouldȱ beȱ addressedȱ toȱ theȱ OfficeȱofȱtheȱPublisher,ȱTheȱWorldȱBank,ȱ1818ȱHȱStreetȱNW,ȱWashington,ȱDCȱ20433,ȱUSA,ȱFax:ȱ202Ȭ522Ȭ 2422,ȱemail:ȱpubrights@worldbank.org.ȱ ȱ ISBN:ȱ978Ȭ0Ȭ8213Ȭ8360Ȭ5ȱ eISBN:ȱ978Ȭ0Ȭ8213Ȭ8362Ȭ9ȱ ISSN:ȱ1726Ȭ5878ȱ DOI:ȱ10.1596/978Ȭ0Ȭ8213Ȭ8360Ȭ5ȱ ȱ LibraryȱofȱCongressȱCatalogingȬinȬPublicationȱDataȱhasȱbeenȱrequested.ȱ
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Contentsȱ
Abstractȱ.......................................................................................................................................ȱv Forewordȱ..................................................................................................................................ȱvii Acknowledgmentsȱ................................................................................................................ȱviii AcronymsȱandȱAbbreviationsȱ................................................................................................ȱix 1.ȱIntroductionȱandȱMainȱFindingsȱ........................................................................................ȱ1 PolicyȱImplicationsȱ.............................................................................................................ȱ3 2.ȱFindingsȱfromȱtheȱSurveyȱ....................................................................................................ȱ5 DataȱCollectionȱandȱRecordingȱofȱMigrantȱRemittancesȱ...............................................ȱ5 RegulationȱandȱSupervisionȱofȱRemittanceȱTransfersȱ ..................................................ȱ11 RemittanceȱCostsȱ...............................................................................................................ȱ13 PoliciesȱtoȱImproveȱRemittanceȱTransfersȱ.....................................................................ȱ16 3.ȱPolicyȱImplicationsȱ.............................................................................................................ȱ21 Referencesȱ.................................................................................................................................ȱ24 Appendixesȱ...............................................................................................................................ȱ25 Appendixȱ1.ȱSurveyȱQuestionnaire:ȱFocusȱonȱRemittanceȱInflowsȱ ............................ȱ26 Appendixȱ2.ȱSurveyȱQuestionnaire:ȱFocusȱOnȱRemittanceȱOutflowsȱ ........................ȱ49 Appendixȱ3.ȱGeographicalȱDistributionȱofȱResponsesȱtoȱSurveyȱofȱCentralȱBanksȱ.ȱ72
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Tablesȱ Tableȱ2.1.ȱMigrantȱRemittanceȱInflowsȱAreȱBetterȱMonitoredȱthanȱOutflowsȱ..................ȱ6 Tableȱ2.2.ȱCentralȱBanksȱAreȱStartingȱtoȱRecordȱTransfersȱthroughȱNewȱ RemittanceȱTechnologiesȱandȱChannelsȱ.......................................................................ȱ10 Tableȱ2.3.ȱManyȱRemittanceȱServicesȱProvidersȱ(ParticularlyȱNewerȱEntrants)ȱ AreȱNotȱSupervisedȱ.........................................................................................................ȱ11
ȱ

Figuresȱ Figureȱ2.1.ȱDataȱandȱInformationȱCollectedȱfromȱHouseholdȱand/orȱOverseasȱ MigrantȱSurveysȱisȱtheȱTopȬCitedȱMethodȱforȱEstimatingȱRemittanceȱ TransfersȱthroughȱInformalȱChannelsȱ .............................................................................ȱ8 Figureȱ2.2.ȱThereȱIsȱaȱLargeȱDiscrepancyȱbetweenȱRemittanceȱDataȱReportedȱinȱ SurveysȱandȱThoseȱCompiledȱfromȱIMFȱBalanceȱofȱPaymentsȱStatisticsȱforȱ SomeȱCountriesȱ..................................................................................................................ȱ9 Figureȱ2.3.ȱHighȱCostȱwasȱCitedȱasȱtheȱTopȱSingleȱFactorȱInhibitingȱUseȱofȱ FormalȱChannelsȱforȱRemittanceȱTransfersȱ..................................................................ȱ14 Figureȱ2.4.ȱHighȱCostȱWasȱStronglyȱCitedȱasȱtheȱTopȱFactorȱInhibitingȱUseȱofȱ FormalȱChannelsȱinȱSubȬSaharanȱAfricaȱ .......................................................................ȱ14 Figureȱ2.5.ȱRequiringȱMTOsȱtoȱPartnerȱwithȱBanksȱtoȱReceiveȱRemittanceȱ InflowsȱIsȱAssociatedȱwithȱPerceptionȱofȱHighȱCostsȱ.................................................ȱ15
iii

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Contents

Figureȱ2.6.ȱCompulsoryȱConversionȱofȱRemittanceȱInflowsȱintoȱLocalȱCurrencyȱ IsȱAssociatedȱwithȱPerceptionȱofȱHighȱCostsȱ...............................................................ȱ16 Figureȱ2.7.ȱBetterȱStatisticsȱandȱStudiesȱWereȱTopȬCitedȱAreasȱNeedingȱ AttentionȱforȱImprovedȱEfficiencyȱandȱSecurityȱofȱTransfersȱ ....................................ȱ17 Figureȱ8.ȱBetterȱStatisticsȱandȱStudiesȱonȱMigrationȱWasȱCitedȱbyȱNearlyȱ80ȱ PercentȱofȱSubȬSaharanȱAfricanȱRespondentsȱasȱNeedingȱAttentionȱforȱ ImprovedȱEfficiencyȱandȱDeliveryȱofȱRemittancesȱ ......................................................ȱ17
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Boxesȱ Boxȱ2.1.ȱDataȱCollectionȱPracticesȱofȱCountriesȱthatȱareȱBothȱRemittanceȬsourceȱ andȱRemittanceȬreceiving:ȱSomeȱExamples....................................................................ȱ7 ȱ ȱ ȱ

Abstractȱ

rawingȱonȱtheȱfindingsȱfromȱresponsesȱtoȱaȱsurveyȱconductedȱinȱ2008–09ȱfromȱ114ȱ centralȱ banksȱ worldwideȱ (ofȱ whichȱ 33ȱ areȱ inȱ Africa),ȱ thisȱ paperȱ aimsȱ toȱ betterȱ understandȱhowȱcentralȱbanksȱandȱotherȱnationalȱinstitutionsȱregulateȱandȱcollectȱdataȱ andȱ otherȱ informationȱ onȱ crossȬborderȱ remittanceȱ flows.ȱ Findingsȱ indicateȱ that,ȱ althoughȱtheȱvastȱmajorityȱofȱcountries,ȱinȱbothȱsendingȱandȱreceivingȱcountries,ȱcollectȱ dataȱ onȱ remittances,ȱ andȱ 43ȱ percentȱ ofȱ receivingȱ countriesȱ estimateȱ informalȱ remittances,ȱ thereȱ isȱ aȱ needȱ forȱ moreȱ frequentȱ andȱ betterȱ coordinatedȱ dataȱ collection,ȱ bothȱ acrossȱ nationalȱ institutionsȱ andȱ amongȱ differentȱ divisionsȱ withinȱ theȱ sameȱ nationalȱ institution,ȱ asȱ wellȱ asȱ betweenȱ countries.ȱ Surveyȱ resultsȱ alsoȱ indicateȱ thatȱ manyȱ newȱ marketȱ entrants’ȱ transferȱ activitiesȱ areȱ unregulated.ȱ Countriesȱ mustȱ takeȱ intoȱaccountȱnewȱchannelsȱandȱtechnologies,ȱsuchȱasȱmobileȱphoneȱserviceȱproviders,ȱ inȱmonitoringȱremittanceȱflows.ȱItȱwillȱbeȱimportantȱforȱnationalȱregulatoryȱauthoritiesȱ toȱworkȱcloselyȱwithȱmobileȱtelecomsȱnetworkȱoperatorsȱtoȱstrikeȱtheȱrightȱregulatoryȱ balance,ȱ toȱ betterȱ understandȱ theseȱ newȱ channels’ȱ associatedȱ risksȱ andȱ fullyȱ tapȱ theirȱ potentialȱforȱfosteringȱinexpensive,ȱefficientȱremittanceȱtransferȱservices.ȱTheȱhighȱcostȱ ofȱ transfersȱ wasȱ citedȱ inȱ theȱ surveyȱ asȱ theȱ topȱ factorȱ inhibitingȱ migrantsȱ fromȱ usingȱ formalȱ channels.ȱ Manyȱ countries,ȱ particularlyȱ inȱ Africa,ȱ haveȱ madeȱ progressȱ inȱ renderingȱ exclusivityȱ contractsȱ illegal,ȱ whichȱ canȱ helpȱ increaseȱ competitivenessȱ andȱ reduceȱtransferȱcosts.ȱFurtherȱpolicyȱreformsȱandȱinitiativesȱareȱneededȱtoȱaddressȱtheȱ highȱcostsȱofȱremittances.ȱ ȱ ȱ ȱ

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Forewordȱ
igrantȱ remittancesȱ provideȱ theȱ mostȱ tangibleȱ linkȱ betweenȱ migrationȱ andȱ development,ȱhavingȱsignificantȱpotentialȱtoȱreduceȱpovertyȱandȱpositivelyȱaffectȱ socioeconomicȱ development.ȱ Drawingȱ onȱ theȱ findingsȱ fromȱ aȱ worldwideȱ surveyȱ ofȱ centralȱbanksȱconductedȱinȱ2008–09,ȱthisȱpaperȱaimsȱtoȱgainȱaȱbetterȱunderstandingȱofȱ nationalȱ regulatoryȱ environmentsȱ forȱ crossȬborderȱ remittanceȱ flowsȱ andȱ howȱ centralȱ banksȱcollectȱdataȱandȱotherȱinformationȱonȱremittances.ȱȱ Surveyȱ findingsȱ drawȱ attentionȱ toȱ theȱ needȱ forȱ betterȱ coordinationȱ inȱ dataȱ collection,ȱ bothȱ acrossȱ nationalȱ institutionsȱ andȱ amongȱ differentȱ divisionsȱ withinȱ theȱ sameȱ institutionȱ inȱ aȱ numberȱ ofȱ countries.ȱ Moreȱ systematicȱ andȱ frequentȱ dataȱ monitoringȱ willȱ allowȱ policyȱ makersȱ toȱ makeȱ betterȱ informedȱ andȱ moreȱ appropriateȱ policyȱresponses.ȱȱ Asȱnewȱagents,ȱsuchȱasȱmobileȱphoneȱserviceȱproviders,ȱenterȱremittanceȱmarkets,ȱ countriesȱwillȱhaveȱtoȱstartȱmonitoringȱnewȱchannelsȱforȱremittanceȱflows.ȱTheȱsurveyȱ findingsȱ alsoȱ underscoreȱ theȱ needȱ toȱ reduceȱ theȱ stillȬhighȱ costȱ ofȱ transfersȱ inȱ manyȱ remittanceȱcorridors,ȱparticularlyȱforȱremittancesȱsentȱtoȱAfrica,ȱincludingȱbyȱpursuingȱ policyȱreformsȱandȱinitiativesȱthatȱencourageȱmoreȱentrantsȱtoȱremittanceȱmarketsȱandȱ moreȱcompetitiveȱmarketȱconditions.ȱ ThisȱpaperȱisȱpartȱofȱaȱbroaderȱeffortȱofȱtheȱDevelopmentȱProspectsȱGroupȱofȱtheȱ Worldȱ Bankȱ toȱ monitorȱ andȱ analyzeȱ migrationȱ andȱ remittancesȱ fromȱ aȱ developmentȱ perspective.ȱ ȱ HansȱTimmerȱ Directorȱ DevelopmentȱProspectsȱGroupȱ TheȱWorldȱBankȱ ȱ ȱ ȱ

vii

Acknowledgmentsȱ
eȱ likeȱ toȱ extendȱ ourȱ gratitudeȱ toȱ theȱ centralȱ bankȱ officialsȱ inȱ theȱ countriesȱ thatȱ participatedȱinȱtheȱsurveyȱforȱtheirȱvaluableȱinputȱandȱhelpȱwithȱthisȱproject.ȱWeȱ wouldȱ alsoȱ likeȱ toȱ thankȱ ourȱ Worldȱ Bankȱ colleaguesȱ inȱ overȱ 70ȱ countriesȱ forȱ theirȱ collaborationȱ inȱ implementingȱ theȱ survey.ȱ Hansȱ Timmer,ȱ Shantaȱ Devarajan,ȱ Louisȱ Kasekende,ȱ andȱ Sudhirȱ Shettyȱ providedȱ guidanceȱ andȱ encouragement.ȱ Massimoȱ Cirasino,ȱNeilȱFantom,ȱMichaelȱFuchs,ȱAngelieȱKumar,ȱLatifahȱMerican,ȱJayaȱMohanty,ȱ Joanaȱ Pascual,ȱ Ritaȱ Ramalho,ȱ Jensȱ Reinke,ȱ andȱ Gregoryȱ Watsonȱ providedȱ usefulȱ commentsȱonȱearlyȱversionsȱofȱtheȱsurveyȱquestionnaireȱandȱadviceȱonȱimplementingȱ theȱsurvey.ȱColleaguesȱatȱtheȱIMFȱAfricanȱDepartmentȱwereȱhelpfulȱinȱdirectingȱusȱtoȱ theȱ appropriateȱ contactsȱ atȱ Africanȱ centralȱ banks.ȱ Thanksȱ toȱ ourȱ colleaguesȱ inȱ theȱ MigrationȱandȱRemittancesȱTeam,ȱAniȱRudraȱSilwal,ȱFaraiȱJena,ȱHazelȱMacadangdang,ȱ Georgeȱ Joseph,ȱ Neilȱ Ruiz,ȱ Rebeccaȱ Russ,ȱ Soniaȱ Plaza,ȱ andȱ Zhimeiȱ Xu,ȱ forȱ helpȱ inȱ preparingȱ dataȱ forȱ analysis,ȱ forȱ helpȱ inȱ organizingȱ aȱ consultationȱ meetingȱ onȱ theȱ sidelinesȱofȱtheȱIMFȬWorldȱ BankȱAnnualȱ MeetingȱinȱOctoberȱ2008,ȱandȱforȱreviewingȱ completedȱsurveys.ȱWeȱwouldȱalsoȱlikeȱtoȱgratefullyȱacknowledgeȱfinancialȱsupportȱforȱ thisȱ studyȱ fromȱ theȱ jointȱ Africanȱ Developmentȱ BankȬWorldȱ Bankȱ Africaȱ Migrationȱ ProjectȱandȱGȬ8ȱGlobalȱRemittancesȱWorkingȱGroup.ȱ ȱ ȱ

viii

AcronymsȱandȱAbbreviationsȱ
ȱ AMLȬCFTȱ BPM5ȱ BPM6ȱ EUȱ GDPȱ IMFȱ MTOȱ RSPȱ ȱ ȱ ȱ AntiȬmoneyȱlaunderingȬcounteringȱtheȱfinancingȱofȱterrorismȱ IMF’sȱBalanceȱofȱPaymentsȱandȱInternationalȱInvestmentȱPositionȱ Manual,ȱfifthȱeditionȱ IMF’sȱBalanceȱofȱPaymentsȱandȱInternationalȱInvestmentȱPositionȱ Manual,ȱsixthȱeditionȱ EuropeanȱUnionȱ Grossȱdomesticȱproductȱ InternationalȱMonetaryȱFundȱ Moneyȱtransferȱoperatorȱ Remittanceȱserviceȱproviderȱ

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CHAPTERȱ1ȱ

IntroductionȱandȱMainȱFindingsȱ

igrantȱremittancesȱprovideȱtheȱmostȱtangibleȱandȱperhapsȱtheȱleastȱcontroversialȱ linkȱ betweenȱ migrationȱ andȱ development,ȱ havingȱ theȱ potentialȱ toȱ contributeȱ significantlyȱ toȱ povertyȱ reductionȱ andȱ achievementȱ ofȱ otherȱ UNȱ Millenniumȱ Developmentȱ Goals.ȱ Recordedȱ migrantȱ remittancesȱ receivedȱ byȱ developingȱ countriesȱ reachedȱ anȱ estimatedȱ $338ȱ billionȱ inȱ 2008,ȱ upȱ nearlyȱ 17ȱ percentȱ fromȱ $289ȱ billionȱ inȱ 2007.1ȱTheȱtrueȱsizeȱofȱmigrantȱremittancesȱincludingȱunrecordedȱflowsȱthroughȱformalȱ andȱinformalȱchannelsȱisȱevenȱhigher,ȱmakingȱremittancesȱtheȱlargestȱsourceȱofȱexternalȱ financeȱ forȱ manyȱ developingȱ countries,ȱ especiallyȱ poorȱ countries.ȱ Maximizingȱ theȱ developmentȱ impactȱ ofȱ remittancesȱ hasȱ beenȱ recognizedȱ atȱ theȱ highestȱ internationalȱ policyȱlevels,ȱwithȱtheȱfinalȱdeclarationȱofȱtheȱJulyȱ2009ȱGroupȱofȱEightȱSummitȱstatingȱ anȱaimȱtoȱmakeȱremittanceȱservicesȱcheaperȱandȱmoreȱaccessibleȱtoȱmigrantsȱandȱtheirȱ families.ȱ ThisȱpaperȱpresentsȱfindingsȱfromȱaȱworldwideȱsurveyȱofȱcentralȱbanksȱonȱcrossȬ borderȱ migrantȱ remittanceȱ flows.ȱ Theȱ mainȱ aimsȱ ofȱ theȱ surveyȱ wereȱ toȱ gainȱ aȱ betterȱ understandingȱ ofȱ theȱ regulatoryȱ environmentȱ forȱ crossȬborderȱ remittanceȱ flowsȱ andȱ howȱcentralȱbanksȱcollectȱdataȱandȱotherȱinformationȱonȱmigrantȱremittances.ȱȱ Surveyȱ questionnairesȱ wereȱ eȬmailedȱ toȱ centralȱ banksȱ andȱ otherȱ nationalȱ institutionsȱinȱ176ȱcountriesȱworldwide.ȱTwoȱmainȱversionsȱofȱtheȱquestionnaireȱwereȱ developedȱ (seeȱ appendicesȱ 1ȱ andȱ 2).ȱ Versionȱ 1ȱ ofȱ theȱ surveyȱ focusesȱ onȱ remittanceȱ inflowsȱ andȱ wasȱ sentȱ toȱ 126ȱ countriesȱ consideredȱ netȱ remittanceȬreceivingȱ countries;ȱ versionȱ2ȱfocusesȱonȱremittanceȱoutflowsȱandȱwasȱsentȱtoȱ50ȱcountriesȱconsideredȱnetȱ remittanceȬsendingȱ countriesȱ (seeȱ appendixȱ 3).ȱ Aȱ versionȱ 3ȱ surveyȱ (containingȱ additionalȱquestionsȱonȱremittanceȱoutflows)ȱwasȱalsoȱsentȱalongȱwithȱversionȱ1ȱofȱtheȱ surveyȱ toȱ severalȱ countriesȱ thatȱ sendȱ asȱ wellȱ asȱ receiveȱ significantȱ amountsȱ ofȱ remittances.2ȱ Theȱ surveyȱ questionnairesȱ wereȱ anȱ adaptationȱ andȱ significantȱ extensionȱ ofȱ aȱ Worldȱ Bankȱ surveyȱ conductedȱ withȱ centralȱ banksȱ inȱ 40ȱ countriesȱ inȱ 2004.3ȱ Theȱ surveyȱ wasȱ distributedȱ betweenȱ Marchȱ andȱ Mayȱ 2008,ȱ initiallyȱ toȱ centralȱ banksȱ inȱ 52ȱ Africanȱcountries.ȱByȱDecemberȱ2009,ȱsurveyȱsubmissionsȱhadȱbeenȱreceivedȱfromȱ114ȱ countriesȱ(33ȱofȱwhichȱareȱAfricanȱcountries),ȱforȱaȱresponseȱrateȱofȱ65ȱpercentȱoverallȱ andȱ63ȱpercentȱforȱAfrica.ȱTheȱ112ȱsurveysȱsubmittedȱinȱsufficientlyȱcompleteȱformȱareȱ analyzedȱ inȱ thisȱ paperȱ (ofȱ whichȱ 77ȱ surveysȱ areȱ fromȱ remittanceȬreceivingȱ countriesȱ andȱ35ȱsurveysȱareȱfromȱremittanceȬsourceȱcountries).ȱ Theȱmainȱfindingsȱofȱtheȱsurveyȱareȱasȱfollows:ȱ

ɶ

Thereȱisȱanȱapparentȱlackȱofȱcoordinationȱonȱdataȱcollectionȱandȱinȱotherȱareasȱ amongȱ variousȱ divisionsȱ withinȱ manyȱ individualȱ centralȱ banks,ȱ amongȱ
1

2

World Bank Working Paper

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ɶ

nationalȱinstitutionsȱwithinȱaȱgivenȱcountry,ȱandȱamongȱcounterpartȱnationalȱ institutions,ȱincludingȱforȱsomeȱmajorȱremittanceȱcorridors.ȱ Asȱ manyȱ asȱ 43ȱ percentȱ ofȱ theȱ remittanceȬreceivingȱ countriesȱ collectȱ dataȱ orȱ informationȱ onȱ crossȬborderȱ migrantȱ remittanceȱ flowsȱ transferredȱ throughȱ informalȱchannels.ȱButȱonlyȱ17ȱpercentȱofȱcentralȱbanksȱinȱremittanceȬreceivingȱ countriesȱprovidedȱestimatesȱofȱinformalȱflowsȱinȱtheirȱsurveyȱresponses.ȱUseȱ ofȱ householdȱ and/orȱ migrantȱ surveysȱ wasȱ theȱ mostȱ citedȱ methodȱ forȱ estimatingȱinformalȱflows.ȱȱ Highȱcostȱisȱperceivedȱasȱtheȱtopȱsingleȱfactorȱinhibitingȱmigrantsȱfromȱusingȱ formalȱ channelsȱ forȱ remittanceȱ transfers.ȱ Aȱ largeȱ majorityȱ ofȱ surveyȱ respondentsȱalsoȱcitedȱfactorsȱthat,ȱtakenȱtogether,ȱindicateȱmistrustȱofȱorȱlackȱ ofȱinformationȱaboutȱfinancialȱsystems,ȱproducts,ȱandȱchannels.ȱ Aȱmajorityȱofȱcentralȱbanksȱciteȱbetterȱstatisticsȱandȱstudiesȱonȱmigrationȱandȱ remittancesȱ asȱ theȱ mostȱ importantȱ areasȱ inȱ needȱ ofȱ attentionȱ toȱ improveȱ theȱ efficiencyȱ andȱ securityȱ ofȱ remittanceȱ transfers.ȱ Inȱ SubȬSaharanȱ Africa,ȱ nearlyȱ 80ȱpercentȱofȱcentralȱbanksȱcitedȱbetterȱstatisticsȱandȱstudiesȱonȱmigrationȱandȱ remittancesȱasȱtheȱmostȱimportantȱareasȱneedingȱattention.ȱ AntiȬmoneyȱlaunderingȱandȱcombatingȱtheȱfinancingȱofȱterrorismȱ(AMLȬCFT)ȱ appearsȱtoȱbeȱaȱhighȱpriorityȱforȱcountriesȱparticipatingȱinȱtheȱsurvey,ȱmanyȱofȱ whichȱhaveȱrecentlyȱorȱareȱcurrentlyȱputtingȱinȱplaceȱinstitutionalȱframeworksȱ andȱ regulationsȱ intendedȱ toȱ betterȱ monitorȱ suspiciousȱ crossȬborderȱ transactions.ȱ Despiteȱ this,ȱ thereȱ seemsȱ toȱ beȱ aȱ lackȱ ofȱ clarityȱ inȱ theȱ actualȱ applicationȱ andȱ enforcementȱ ofȱ AMLȬCFTȱ regulationsȱ forȱ remittanceȱ serviceȱ providersȱ(RSPs).ȱ

Theȱsurveyȱalsoȱrevealedȱthatȱmigrantȱremittanceȱinflowsȱhaveȱbeenȱmonitoredȱforȱ aȱlongerȱtime,ȱandȱinȱgeneralȱareȱbetterȱmonitored,ȱthanȱremittanceȱoutflows.ȱInȱseveralȱ countries,ȱ thereȱ areȱ largeȱ discrepanciesȱ inȱ dataȱ reportingȱ byȱ differentȱ agencies.ȱ Althoughȱ centralȱ banksȱ areȱ beginningȱ toȱ payȱ attentionȱ toȱ newȱ technologiesȱ andȱ alternativeȱchannelsȱinȱrecordingȱremittanceȱtransactions,ȱnewȱentrantsȱtoȱtheȱmarket,ȱ suchȱ asȱ mobileȱ phoneȱ serviceȱ providers,ȱ areȱ notȱ yetȱ veryȱ activeȱ inȱ crossȬborderȱ remittanceȱ transfers.ȱ Onlyȱ fourȱ remittanceȬreceivingȱ countriesȱ reportedȱ theȱ useȱ ofȱ mobileȱphonesȱinȱcrossȬborderȱremittanceȱtransfersȱatȱtheȱtimeȱofȱtheȱsurvey.ȱ Remittanceȱ servicesȱ providedȱ byȱ manyȱ ofȱ theȱ newerȱ marketȱ entrantsȱ tendȱ toȱ beȱ unregulated.ȱ However,ȱ evenȱ remittanceȱ transferȱ activitiesȱ ofȱ asȱ manyȱ asȱ 6ȱ percentȱ ofȱ theȱ commercialȱ banksȱ providingȱ theseȱ servicesȱ inȱ remittanceȬreceivingȱ countriesȱ andȱ 11ȱ percentȱ ofȱ theȱ commercialȱ banksȱ providingȱ theseȱ servicesȱ inȱ remittanceȬsendingȱ countriesȱareȱnotȱsubjectȱtoȱanyȱsupervisoryȱauthority.ȱȱ Theȱexistenceȱofȱaȱlegalȱrequirementȱthatȱmoneyȱtransferȱoperatorsȱ(MTOs)ȱpartnerȱ withȱbanksȱisȱ associatedȱwithȱhighȱ remittanceȱcostsȱinȱ remittanceȬreceivingȱcountries.ȱ Thisȱ relationshipȱ isȱ moreȱ pronouncedȱ inȱ SubȬSaharanȱ Africa.ȱ Remittanceȱ costsȱ alsoȱ tendȱ toȱ beȱ higherȱ inȱ countriesȱ whereȱ itȱ isȱ compulsoryȱ toȱ convertȱ remittanceȱ proceedsȱ intoȱlocalȱcurrency.ȱ

Migrant Remittance Flows: Findings from a Global Survey of Central Banks

3

Policy Implications
Theȱ resultsȱ ofȱ theȱ surveyȱ suggestȱ thatȱ centralȱ banksȱ andȱ otherȱ nationalȱ institutionsȱ responsibleȱ forȱ dataȱ collectionȱ needȱ toȱ improveȱ coordinationȱ inȱ thisȱ area,ȱ withȱ moreȱ systematicȱ dataȱ andȱ informationȱ exchange,ȱ betterȱ communication,ȱ andȱ moreȱ effectiveȱ divisionȱofȱlaborȱtoȱavoidȱduplicationȱofȱefforts.ȱBetterȱcoordinationȱinȱdataȱcollectionȱ needsȱtoȱoccurȱbothȱacrossȱinstitutionsȱandȱamongȱdifferentȱdivisionsȱwithinȱtheȱsameȱ institutionȱinȱaȱnumberȱofȱcountries.ȱȱ Itȱwillȱbeȱimportantȱforȱcentralȱbanksȱandȱotherȱnationalȱauthoritiesȱresponsibleȱforȱ remittancesȱ dataȱ collectionȱ andȱ monitoringȱ toȱ giveȱ moreȱ attentionȱ toȱ theseȱ activities,ȱ includingȱbyȱmonitoringȱcrossȬborderȱremittanceȱflowsȱdataȱatȱhigherȱfrequenciesȱandȱ disaggregatingȱ byȱ sourceȱ country,ȱ whereȱ possible.ȱ Forȱ manyȱ remittanceȬreceivingȱ countries,ȱ itȱ willȱ alsoȱ beȱ importantȱ toȱ reviseȱ dataȱ compilationȱ methodsȱ toȱ betterȱ distinguishȱ remittanceȱ inflowsȱ fromȱ otherȱ capitalȱ inflowsȱ andȱ toȱ disaggregateȱ byȱ remittanceȱcategory.ȱSuchȱimprovementsȱtoȱdataȱcollectionȱpracticesȱcouldȱbeȱcriticalȱtoȱ effectivelyȱmonitoringȱtheseȱcrossȬborderȱflows,ȱinȱtheȱfaceȱofȱheightenedȱconcernsȱthatȱ theȱ globalȱ financialȱ crisisȱ isȱ negativelyȱ affectingȱ theȱ amountȱ ofȱ crossȬborderȱ migrantȱ remittanceȱflowsȱtoȱmanyȱremittanceȬreceivingȱcountries.ȱȱ Asȱ newȱ RSPȱ entrantsȱ toȱ theȱ marketȱ emergeȱ (forȱ example,ȱ mobileȱ phoneȱ serviceȱ providers),ȱitȱwillȱbecomeȱincreasinglyȱimportantȱforȱcountriesȱtoȱtakeȱintoȱaccountȱnewȱ channelsȱandȱtechnologiesȱinȱcollectingȱdataȱonȱandȱmonitoringȱremittances.ȱGivenȱthatȱ theȱ remittanceȱ transferȱ activitiesȱ ofȱ manyȱ ofȱ theȱ newerȱ marketȱ entrantsȱ areȱ notȱ yetȱ regulatedȱ inȱ aȱ numberȱ ofȱ countries,4ȱ nationalȱ financialȱ marketȱ regulatoryȱ authoritiesȱ andȱ mobileȱ phoneȱ serviceȱ networkȱ operatorsȱ needȱ toȱ coordinateȱ toȱ strikeȱ theȱ rightȱ balanceȱinȱregulatingȱtheseȱnewȱtechnologiesȱforȱmoneyȱtransfers.ȱȱ Forȱ manyȱ remittanceȱ corridorsȱ worldwide,ȱ appropriateȱ nationalȱ policiesȱ andȱ initiativesȱ shouldȱ beȱ implementedȱ toȱ addressȱ theȱ highȱ costȱ ofȱ remittanceȱ transfers.ȱ Policiesȱthatȱpromoteȱcompetitionȱinȱtheȱremittancesȱmarketȱcanȱreduceȱtransferȱcostsȱ andȱ improveȱ serviceȱ quality.5ȱ Discouragingȱ exclusivityȱ contractsȱ betweenȱ RSPsȱ andȱ nationalȱ postȱ officesȱ orȱ banksȱ willȱ beȱ importantȱ forȱ increasingȱ competitionȱ andȱ reducingȱ transferȱ costs.ȱ Anotherȱ keyȱ stepȱ towardȱ reducingȱ theȱ costȱ ofȱ remittanceȱ transfersȱwillȱbeȱfinancialȱliteracyȱcampaigns,ȱwhichȱcanȱincreaseȱpublicȱawarenessȱofȱ remittanceȱmethodsȱandȱtheȱassociatedȱprices,ȱputtingȱpressureȱonȱprovidersȱtoȱreduceȱ costs.ȱ Promotionalȱ effortsȱ thatȱ increaseȱ theȱ public’sȱ trustȱ inȱ banksȱ andȱ otherȱ RSPs,ȱ backed,ȱ ofȱ course,ȱ byȱ nationalȱ policiesȱ andȱ regulatoryȱ frameworksȱ thatȱ promoteȱ aȱ healthy,ȱ wellȬfunctioning,ȱ andȱ efficientȱ bankingȱ andȱ financialȱ sector,ȱ couldȱ alsoȱ promoteȱcompetitionȱinȱtheȱremittancesȱmarketȱandȱultimatelyȱreduceȱcosts.ȱ

Notes
ȱ
1 ȱ Forȱ informationȱ onȱ andȱ analysisȱ ofȱ theȱ magnitudeȱ andȱ characteristicsȱ ofȱ migrantȱ remittanceȱ flowsȱbyȱregion,ȱseeȱRatha,ȱMohapatra,ȱandȱSilwalȱ(Novemberȱ2009).ȱ 2 ȱThreeȱcountries’ȱcentralȱbanksȱcompletedȱtheȱversionȱ3ȱappendixȱquestionnaire:ȱcentralȱbanksȱinȱ Cyprus,ȱTheȱCzechȱRepublic,ȱandȱLebanon.ȱ 3 ȱSeeȱdeȱLunaȱMartinezȱ(2005).ȱȱ 4 ȱAlthoughȱmobileȱphoneȱserviceȱproviders,ȱinȱparticular,ȱwereȱreportedlyȱprovidingȱcrossȬborderȱ remittanceȱ transferȱ servicesȱ forȱ onlyȱ fourȱ remittanceȬreceivingȱ countriesȱ (Brazil,ȱ Indonesia,ȱ

ȱ

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ȱ
Mexico,ȱandȱtheȱPhilippines)ȱatȱtheȱtimeȱofȱtheȱsurvey,ȱthereȱisȱgrowingȱanecdotalȱevidenceȱthatȱ mobileȱ phoneȱ serviceȱ providersȱ areȱ becomingȱ increasinglyȱ activeȱ inȱ transmittingȱ remittancesȱ domesticallyȱinȱmanyȱdevelopingȱcountries.ȱ 5 ȱSee,ȱforȱexample,ȱRathaȱandȱRiedbergȱ(2005).ȱ

CHAPTERȱ2ȱ

FindingsȱfromȱtheȱSurveyȱ
Data Collection and Recording of Migrant Remittances
Migrantȱremittanceȱinflowsȱareȱbetterȱmonitoredȱthanȱmigrantȱremittanceȱoutflowsȱandȱ recordingȱofȱinflowsȱhasȱoccurredȱforȱaȱlongerȱtime.1ȱȱ Thereȱ isȱ noȱ regularȱ dataȱ collectionȱ onȱ migrantȱ remittanceȱ inflowsȱ inȱ onlyȱ oneȱ surveyedȱ remittanceȬreceivingȱ countryȱ (tableȱ 2.1).2ȱ Thisȱ standsȱ inȱ markedȱ contrastȱ toȱ remittanceȬsendingȱcountries,ȱwhereȱ11ȱpercentȱofȱtheȱcentralȱbanksȱandȱotherȱnationalȱ institutionsȱ surveyedȱ indicatedȱ thatȱ thereȱ isȱ noȱ regularȱ collectionȱ ofȱ dataȱ onȱ migrantȱ remittanceȱoutflows.3ȱȱ Thereȱareȱaȱfewȱprobableȱexplanationsȱforȱtheȱdifferingȱpriorityȱgivenȱtoȱcollectionȱ ofȱ dataȱ onȱ migrantȱ crossȬborderȱ remittanceȱ flowsȱ inȱ remittanceȬsendingȱ versusȱ remittanceȬreceivingȱcountries.ȱBecauseȱremittanceȱoutflowsȱtendȱtoȱbeȱsmallȱrelativeȱtoȱ grossȱ domesticȱ productȱ (GDP)ȱ inȱ remittanceȬsendingȱ countriesȱ andȱ compriseȱ aȱ relativelyȱ smallȱ proportionȱ ofȱ theseȱ countries’ȱ balanceȱ ofȱ paymentsȱ statistics,ȱ monitoringȱ remittanceȱ outflowsȱ dataȱ alsoȱ tendsȱ toȱ beȱ aȱ relativelyȱ lowȱ priority.ȱ Thisȱ couldȱalsoȱreflectȱtheȱfactȱthatȱbanksȱinȱEuropeanȱUnionȱ(EU)ȱmemberȱcountriesȱ(whichȱ compriseȱ16ȱoutȱofȱtheȱ35ȱremittanceȬsourceȱcountriesȱthatȱrespondedȱtoȱtheȱsurvey)ȱareȱ notȱ obligedȱ toȱ reportȱ crossȬborderȱ transactionsȱ belowȱ €12,500—aȱ thresholdȱ farȱ higherȱ thanȱtheȱamountsȱtypicallyȱsentȱbyȱmigrants.4ȱOnȱtheȱotherȱhand,ȱtheȱeffectsȱofȱtheȱEUȱ thresholdsȱ haveȱ reportedlyȱ beenȱ somewhatȱ mixedȱ acrossȱ memberȱ countries,ȱ withȱ atȱ leastȱ oneȱ participatingȱ EUȱ countryȱ havingȱ foundȱ thatȱ theseȱ highȱ reportingȱ thresholdsȱ haveȱ hadȱ theȱ oppositeȱ effect—motivatingȱ recentȱ steppedȱ upȱ effortsȱ toȱ improveȱ methodsȱforȱcompilingȱdataȱonȱremittances.5ȱȱ Notably,ȱinȱaȱnumberȱofȱremittanceȬreceivingȱcountries,ȱincludingȱtheȱPhilippinesȱ andȱRwanda,ȱMTOsȱdoȱnotȱreportȱdataȱandȱotherȱinformationȱonȱremittanceȱtransfersȱ directlyȱ toȱ theȱ centralȱ bankȱ orȱ anyȱ otherȱ nationalȱ institution.ȱ Theȱ mainȱ sourceȱ ofȱ remittancesȱ dataȱ inȱ mostȱ countriesȱ isȱ theȱ periodicȱ (rangingȱ fromȱ dailyȱ toȱ quarterly)ȱ reportsȱsubmittedȱbyȱcommercialȱbanks.ȱInȱaȱnumberȱofȱcases,ȱcentralȱbanksȱindicatedȱ thatȱ MTOs’ȱ remittancesȱ dataȱ areȱ capturedȱ indirectly,ȱ inȱ theȱ reportingȱ byȱ banksȱ withȱ whichȱ theyȱ operateȱ inȱ partnership.ȱ Thus,ȱ itȱ isȱ likelyȱ thatȱ dataȱ andȱ informationȱ specificallyȱ onȱ MTOs’ȱ crossȬborderȱ remittanceȱ transfersȱ mayȱ beȱ collectedȱ moreȱ extensivelyȱ(albeitȱindirectly)ȱthanȱwasȱindicatedȱinȱtheȱsurvey.ȱȱ ȱ ȱ

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Table 2.1. Migrant Remittance Inflows Are Better Monitored than Outflows
Remittance-receiving countries (%) No regular data collection Not indicated Central banks of which: Central bank only Central bank and finance ministry Central bank and national statistical office Central bank and other national institution National statistical office onlya Other national institutions 74 1 17 3 0 1 51 3 9 3 17 3 1 3 95 Remittance-sending countries (%) 11 3 66

Source:ȱAuthors’ȱcalculationsȱbaseȱonȱsurveyȱresponses.ȱ Note:ȱ Tableȱ dataȱ coverȱ theȱ 77ȱ remittanceȬreceivingȱ countriesȱ thatȱ hadȱ respondedȱ toȱ versionȱ 1ȱ ofȱ theȱ surveyȱ andȱ theȱ 35ȱ remittanceȬsendingȱ countriesȱ thatȱ hadȱ respondedȱ toȱ versionȱ 2ȱ ofȱ theȱ surveyȱ asȱ ofȱ Decemberȱ2009.ȱ a.ȱ Inȱ 17ȱ percentȱ ofȱ remittanceȬreceivingȱ countriesȱ andȱ 9ȱ percentȱ ofȱ remittanceȬsendingȱ countries,ȱ bothȱ nationalȱstatisticalȱofficesȱandȱcentralȱbanksȱcollectȱtheseȱdata.ȱȱ

ȱ Dataȱ collectionȱ byȱ remittanceȬreceivingȱ countriesȱ hasȱ beenȱ occurringȱ forȱ longerȱ thanȱ byȱ remittanceȬsendingȱ countries.ȱ Nearlyȱ threeȬquartersȱ ofȱ remittanceȬreceivingȱ countriesȱ reportedȱ thatȱ collectionȱ ofȱ migrantȱ remittancesȱ dataȱ beganȱ moreȱ thanȱ fiveȱ yearsȱago,ȱwithȱ56ȱpercentȱofȱtheȱcountriesȱbeginningȱcollectionȱofȱtheseȱdataȱmoreȱthanȱ 11ȱ yearsȱ ago.ȱ Inȱ contrast,ȱ forȱ remittanceȬsendingȱ countries,ȱ theȱ correspondingȱ figuresȱ areȱlower:ȱ60ȱpercentȱandȱ51ȱpercent,ȱrespectively.ȱ Asȱmanyȱasȱ43ȱpercentȱofȱrespondentsȱinȱremittanceȬreceivingȱcountriesȱindicatedȱ thatȱ theyȱ collectȱ informationȱ onȱ crossȬborderȱ migrantȱ remittanceȱ flowsȱ transferredȱ throughȱ informalȱ channels.6ȱ Seventyȱ percentȱ ofȱ theseȱ countriesȱ collectȱ suchȱ dataȱ withȱ someȱ regularity,ȱ withȱ theȱ mostȱ commonȱ frequenciesȱ forȱ collectingȱ dataȱ andȱ informationȱ onȱ remittancesȱ sentȱ throughȱ informalȱ channelsȱ beingȱ atȱ leastȱ quarterlyȱ (citedȱ byȱ 24ȱ percent;ȱ withȱ 18ȱ percentȱ eachȱ citingȱ atȱ leastȱ monthlyȱ andȱ atȱ leastȱ annually).7ȱ Fewerȱ thanȱ 17ȱ percentȱ ofȱ centralȱ banksȱ inȱ remittanceȬreceivingȱ countriesȱ providedȱestimatesȱofȱinformalȱflowsȱinȱtheȱsurveyȱresponses,ȱhowever.ȱAndȱonlyȱtwoȱ countriesȱ completingȱ versionȱ 2ȱ ofȱ theȱ questionnaireȱ focusingȱ onȱ remittanceȱ outflowsȱ (GermanyȱandȱtheȱRussianȱFederation)ȱindicatedȱthatȱtheyȱcollectȱinformationȱonȱcrossȬ borderȱmigrantȱremittanceȱflowsȱtransferredȱthroughȱinformalȱchannels.ȱAmongȱthoseȱ countriesȱ thatȱ sendȱ asȱ wellȱ asȱ receiveȱ significantȱ amountsȱ ofȱ remittancesȱ (andȱ thusȱ completedȱ versionsȱ 1ȱ andȱ 3ȱ ofȱ theȱ questionnaire),ȱ theȱ Czechȱ Nationalȱ Bankȱ indicatedȱ thatȱitȱestimatesȱdataȱonȱremittancesȱtransferredȱthroughȱinformalȱchannelsȱ(boxȱ2.1).ȱȱ ȱ ȱ ȱ ȱ

Migrant Remittance Flows: Findings from a Global Survey of Central Banks

7

ȱ
Box 2.1. Data Collection Practices of Countries that are Both Remittance-source and Remittance-receiving: Some Examples
Among the central bank respondents in countries that send as well as receive significant amounts of remittances, three central banks, in Cyprus, The Czech Republic and Lebanon, completed both a version 1 survey questionnaire (focus on remittance inflows) and a version 3 survey questionnaire (short supplement with focus on remittance outflows). The submissions indicate that, for Cyprus and Lebanon, a relatively high priority has been given, for at least the past several years, to regular, periodic data collection by national central banks and other institutions of both remittance inflows and outflows through formal channels in these countries. These countries’ central banks reported that they collect data and other information on remittance inflows and outflows regularly (monthly). This is similar to the overall results of this study, whereby the vast majority of participating countries reported that they provide for some means of regular data collection on cross-border remittance flows. The Czech National Bank also indicated that frequent, periodic remittance data reporting had been undertaken in 2005-07, based on the use of tracking codes by banks and other RSPs for cross-border payments. As an EU member country, however, The Czech Republic has since adopted the high threshold for reporting cross-border transactions (raised from €12,500 to €50,000 with effect from 2008), which has meant that since 2008 banks are no longer obliged to use these codes and report small cross-border transactions. Data collecting and estimating responsibilities have since undergone a transition in The Czech Republic, coinciding with adoption of the EU reporting thresholds. In 2007, the Czech National Statistical Office (CZSO) assumed responsibility from the Czech National Bank for estimating cross-border remittance flows and the CZSO introduced a new methodology for preparing these estimates by working closely with the Ministry of Labour and Social Affairs and the Research Institute of Labour and Social Affairs, which compile demographic and other data on foreigners resident in The Czech Republic and Czechs employed overseas. Only one of these three countries (Czech Republic) collects data or estimates remittances transferred through informal channels, and there were no estimates of informal flows provided in these countries’ survey submissions. The Czech National Bank indicated that it does not currently have enough information to determine the main factors that lead to transfers of remittance outflows through informal channels. Although the Bank of Lebanon does not collect data on cross-border remittance flows through informal channels, it did cite a number of factors that are likely inhibiting more transfers through formal channels, including high cost (the top factor cited overall by all participants in this study), as well as lack of bank branches located near intended remittance beneficiaries overseas, remittance senders’ lack of access to bank accounts, mistrust or lack of information about electronic transfers, and remittance recipient countries’ tax policies on inflows.

ȱ TheȱmostȱcommonlyȱcitedȱmethodȱinȱremittanceȬreceivingȱcountriesȱforȱestimatingȱ informalȱ remittancesȱ wasȱ propensityȱ toȱ remitȱ andȱ estimatesȱ basedȱ onȱ dataȱ andȱ informationȱ collectedȱ fromȱ householdȱ and/orȱ overseasȱ migrantȱ surveys.ȱ Thisȱ methodȱ wasȱcitedȱbyȱ42ȱpercentȱofȱthoseȱcentralȱbanksȱinȱcountriesȱwhereȱremittancesȱthroughȱ informalȱ channelsȱ areȱ estimatedȱ (figureȱ 2.1).8ȱ Estimatingȱ theȱ shareȱ ofȱ remittancesȱ inȱ overallȱforeignȱexchangeȱtransactionȱvolumes,ȱincludingȱthroughȱsurveys,ȱwasȱtheȱnextȱ mostȱcommonlyȱcitedȱmethodȱinȱremittanceȬreceivingȱcountriesȱforȱestimatingȱinformalȱ remittancesȱ (24ȱ percent).ȱ Inȱ Rwanda,ȱ forȱ example,ȱ remittanceȱ transfersȱ throughȱ informalȱchannelsȱ(handȬcarriedȱandȱotherȱmeansȱnotȱreportedȱbyȱtheȱbanksȱorȱmoneyȱ transferȱoperators)ȱhaveȱbeenȱestimatedȱbasedȱonȱinformationȱgeneratedȱfromȱsurveysȱ thatȱ tryȱ toȱ determineȱ theȱ originȱ ofȱ currencyȱ soldȱ atȱ exchangeȱ bureausȱ byȱ Rwandanȱ residentsȱ(thatȱis,ȱtheȱshareȱ ofȱcurrencyȱexchangedȱthatȱoriginatesȱfromȱtheȱdiaspora),ȱ

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whichȱ isȱ thenȱ multipliedȱ byȱ theȱ volumeȱ ofȱ monthlyȱ purchasesȱ byȱ theȱ exchangeȱ bureaus.ȱ Variousȱ otherȱ methodsȱ reportedlyȱ areȱ usedȱ inȱ theseȱ countriesȱ toȱ estimateȱ remittancesȱ transferredȱ throughȱ informalȱ channels,ȱ withȱ sourcesȱ includingȱ foreignȱ exchangeȱ bureaus,ȱ laborȱ ministries,ȱ foreignȱ embassies,ȱ and,ȱ inȱ oneȱ country’sȱ case,ȱ informationȱpublishedȱinȱnewspapers.ȱ ȱ
Figure 2.1. Data and Information Collected from Household and/or Overseas Migrant Surveys is the Top-Cited Method for Estimating Remittance Transfers through Informal Channels
Propensity to remit & other estimates based on households & overseas migrant surveys Estimating remittances' share in total foreign exchange transaction volumes Estimates of cash carried across borders by visiting nationals at entry points Estimates of cash carried across borders by courier/transport companies, collected via surveys by national statistics agency Information provided by foreign embassies on labor permits issued to nationals abroad Estimates based on number of workers abroad including via data provided by Department of Labor “Expert estimates” Information from newspapers Estimates based on errors & omissions in the balance of payments

42%

0

5

10

15

20

25

30

35

40

45

50
ȱ

% of CBs that collect data on remittances via informal channels and cite this method

Source:ȱAuthors’ȱcalculationsȱbasedȱonȱsurveyȱresponses.ȱ Note:ȱFigureȱdataȱcoverȱtheȱ33ȱremittanceȬreceivingȱcountriesȱthatȱrespondedȱpositivelyȱtoȱquestionȱ24ȱ thatȱdataȱandȱotherȱinformationȱonȱremittancesȱtransferredȱthroughȱinformalȱchannelsȱareȱcollected.ȱ

ȱ Thereȱ canȱ beȱ aȱ largeȱ discrepancyȱ betweenȱ whatȱ centralȱ banksȱ reportedȱ inȱ theȱ surveyȱ andȱ whatȱ theyȱ reportedȱ inȱ theirȱ balanceȱ ofȱ paymentsȱ statisticsȱ toȱ theȱ InternationalȱMonetaryȱFund.9ȱAȱcomparisonȱofȱremittanceȱdataȱreportedȱinȱtheȱsurveyȱ andȱ dataȱ reportedȱ inȱ theȱ Worldȱ Bank’sȱ Migrationȱ andȱ Remittancesȱ Factbookȱ 2008,ȱ whichȱ areȱ compiledȱ fromȱ variousȱ issuesȱ ofȱ theȱ IMFȱ Balanceȱ ofȱ Paymentsȱ Statisticsȱ Yearbook,ȱ revealȱ sizeableȱ discrepanciesȱ forȱ bothȱ remittanceȱ inflowsȱ andȱ outflowsȱ forȱ severalȱ countriesȱ (figureȱ 2.2).ȱ Forȱ example,ȱ inȱ theȱ caseȱ ofȱ Ghana,ȱ remittanceȱ inflowsȱ reportedȱtoȱtheȱIMFȱforȱ2007ȱwereȱ$105ȱmillion,ȱwhileȱtheȱfigureȱreportedȱinȱtheȱsurveyȱ wasȱ $1.8ȱ billion—someȱ 18ȱ timesȱ asȱ large.ȱ Figuresȱ reportedȱ inȱ theȱ surveyȱ forȱ Madagascarȱ wereȱ 15ȱ timesȱ asȱ largeȱ asȱ thoseȱ reportedȱ inȱ theȱ IMFȱ statisticsȱ andȱ forȱ Rwanda,ȱ double.10ȱ Similarlyȱ largeȱ discrepanciesȱ betweenȱ dataȱ reportedȱ inȱ theȱ surveyȱ andȱ dataȱ reportedȱ inȱ theȱ IMFȱ statisticsȱ wereȱ seenȱ forȱ Ethiopia,ȱ Lithuania,ȱ andȱ Sierraȱ Leone.ȱOfficialȱfiguresȱforȱtheȱlatterȱcountries,ȱhowever,ȱhaveȱbeenȱrevisedȱupwardȱinȱ

Migrant Remittance Flows: Findings from a Global Survey of Central Banks

9

theȱ pastȱ severalȱ months,ȱ andȱ areȱ nowȱ broadlyȱ consistentȱ withȱ thoseȱ reportedȱ inȱ theȱ survey.11ȱ Similar,ȱbutȱsmaller,ȱdiscrepanciesȱwereȱobservedȱforȱtheȱcountriesȱthatȱrespondedȱ toȱ theȱ versionȱ 2ȱ ofȱ theȱ questionnaireȱ (focusȱ onȱ remittanceȱ outflows),ȱ exceptȱ forȱ theȱ UnitedȱKingdom.12ȱTheȱfigureȱreportedȱbyȱtheȱUnitedȱKingdomȱforȱremittanceȱoutflowsȱ inȱtheȱsurveyȱwasȱthreeȱtimesȱthatȱreportedȱinȱtheȱIMF’sȱbalanceȱofȱpaymentsȱstatistics.ȱ Someȱmajorȱsourceȱcountriesȱforȱremittances,ȱsuchȱasȱSaudiȱArabia,ȱdoȱnotȱreportȱanyȱ remittanceȱdataȱinȱtheirȱbalanceȱofȱpaymentsȱreportingȱtoȱtheȱIMF.ȱ ȱ ȱ
Figure 2.2. There Is a Large Discrepancy between Remittance Data Reported in Surveys and Those Compiled from IMF Balance of Payments Statistics for Some Countries
US$ bns. 20ȱ Survey dataȱ 15ȱ 14.8

10ȱ IMF data 5.0 5ȱ 1.8 0.1 0ȱ Ghana Remittance inflows UK Remittance outflows
ȱ

Source:ȱAuthors’ȱcalculationsȱbasedȱonȱsurveyȱresponses.ȱ Note:ȱMigrants’ȱremittancesȱwereȱdefinedȱinȱ2008ȱforȱtheȱpurposeȱofȱtheȱsurvey,ȱinȱlineȱwithȱtheȱIMF’sȱ Balanceȱ ofȱ Paymentsȱ andȱ Internationalȱ Investmentȱ Positionȱ Manualȱ fifthȱ editionȱ (BPM5),ȱ asȱ theȱ sumȱ ofȱ workers’ȱremittances,ȱcompensationȱofȱemployees,ȱandȱmigrants’ȱtransfers.13ȱUnderȱtheȱsixthȱeditionȱofȱ theȱ Balanceȱ ofȱ Paymentsȱ andȱ Internationalȱ Investmentȱ Positionȱ Manualȱ (BPM6),ȱ releasedȱ inȱ midȱ 2009,ȱ definitionsȱ andȱ conceptsȱ relatedȱ toȱ remittancesȱ inȱ theȱ balanceȱ ofȱ paymentsȱ frameworkȱ haveȱ beenȱ revised.14ȱOneȱofȱtheȱmainȱchangesȱintroducedȱbyȱBPM6ȱisȱtheȱreplacementȱofȱtheȱworkers’ȱremittancesȱ standardȱcomponentȱwithȱpersonalȱtransfers,ȱwhichȱcoversȱallȱcurrentȱtransfersȱsentȱbyȱindividualsȱtoȱ individualsȱandȱthusȱisȱdefinedȱindependentlyȱofȱtheȱsourceȱofȱincomeȱofȱtheȱsenderȱandȱpurposeȱofȱtheȱ transfer.ȱ BPM6ȱ alsoȱ includesȱ asȱ remittancesȱ inȱ cashȱ andȱ inȱ kindȱ philanthropicȱ contributionsȱ fromȱ nonprofitȱinstitutionsȱsentȱfromȱoneȱeconomyȱtoȱanother.ȱ

ȱ ȱ Aȱpossibleȱreasonȱforȱtheseȱdiscrepanciesȱisȱthatȱtheȱdataȱcollectedȱbyȱcentralȱbanksȱ sometimesȱ doȱ notȱ allowȱ themȱ toȱ distinguishȱ migrantȱ remittancesȱ fromȱ otherȱ smallȬ valueȱ payments,ȱ suchȱ asȱ crossȬborderȱ tradeȱ orȱ investmentȱ flowsȱ byȱ nonresidents.ȱ Anotherȱ reasonȱ isȱ thatȱ centralȱ banksȱ earlierȱ reliedȱ onȱ dataȱ reportedȱ solelyȱ byȱ

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commercialȱ banks,ȱ whileȱ theyȱ areȱ nowȱ makingȱ effortsȱ toȱ includeȱ transfersȱ throughȱ moneyȱtransferȱagenciesȱandȱotherȱprovidersȱofȱremittanceȱservices.ȱMoreover,ȱseveralȱ centralȱbanksȱareȱnowȱstartingȱtoȱuseȱsurveysȱofȱmigrantsȱinȱtheȱdestinationȱcountriesȱ andȱmigrantȱhouseholdȱsurveysȱinȱtheȱoriginȱcountriesȱtoȱsupplementȱtheȱdataȱreportedȱ byȱprovidersȱofȱremittanceȱservices.ȱ Centralȱbanksȱareȱbeginningȱtoȱpayȱattentionȱtoȱnewȱtechnologiesȱandȱalternativeȱ channelsȱwhenȱrecordingȱremittanceȱtransactionsȱ(tableȱ2.2).15ȱTransactionsȱrecordedȱasȱ migrantȱ remittanceȱ inflowsȱ areȱ typicallyȱ thoseȱ throughȱ banks,ȱ moneyȱ transferȱ operators,ȱ andȱ postȱ offices.ȱ However,ȱ someȱ centralȱ banksȱ areȱ beginningȱ toȱ recordȱ transactionsȱ throughȱ newȱ technologiesȱ suchȱ asȱ debitȱ orȱ prepaidȱ cardsȱ usedȱ atȱ retailȱ storesȱ (Belarus,ȱ Cyprus,ȱ Elȱ Salvador,ȱ Guatemala,ȱ Indonesia,ȱ Morocco,ȱ Nicaragua,ȱ Poland,ȱ andȱ Uganda),ȱ transfersȱ throughȱ mobileȱ phoneȱ (Indonesia,ȱ Mexico,ȱ andȱ theȱ Philippines),ȱ andȱ evenȱ purchasesȱ ofȱ homesȱ byȱ migrantsȱ forȱ beneficiariesȱ (Belarus,ȱ Burkinaȱ Faso,ȱ Colombia,ȱ Cyprus,ȱ Indonesia,ȱ Moldova,ȱ Niger,ȱ theȱ Philippines,ȱ andȱ Tunisia).ȱȱ ȱ ȱ
Table 2.2. Central Banks Are Starting to Record Transfers through New Remittance Technologies and Channels
Percent of central banks recording data as remittance transfers

Remittances through money transfer companies* Electronic fund transfers through correspondent banks* International money orders through post offices International money orders sent electronically* Bank drafts* Checks issued by banks abroad* Prepaid and debit cards** Electronic transfer of remittances to the mobile phone**

70 69 47 45 42 30 29 5

Source:ȱAuthors’ȱcalculationsȱbasedȱonȱsurveyȱresponses.ȱ Note:ȱTableȱdataȱcoverȱtheȱ77ȱremittanceȬreceivingȱcountriesȱthatȱrespondedȱtoȱversionȱ1ȱofȱtheȱsurveyȱ byȱDecemberȱ2009.ȱ *ȱBanksȱinvolved.ȱ**ȱNewȱtechnologies.ȱ

ȱ ȱ Someȱcentralȱbanksȱalsoȱrecordȱtransactionsȱotherȱthanȱtheȱcategoriesȱinȱtableȱ2.2ȱasȱ migrantȱ remittances.ȱ Forȱ example,ȱ India’sȱ centralȱ bankȱ recordsȱ localȱ withdrawalsȱ orȱ redemptionsȱ fromȱ nonresidentȱ deposits,ȱ goldȱ andȱ silverȱ broughtȱ throughȱ passengers’ȱ baggage,ȱ andȱ personalȱ giftsȱ orȱ donationsȱ toȱ charitableȱ andȱ religiousȱ institutions.ȱ Theȱ JamaicanȱandȱSamoanȱcentralȱbanksȱrecordȱsomeȱportionȱofȱforeignȱcurrencyȱreceivedȱ fromȱ nonresidentsȱ andȱ convertedȱ intoȱ localȱ currencyȱ atȱ commercialȱ banks,ȱ andȱ theȱ Moroccanȱcentralȱbankȱrecordsȱtravelers’ȱchecks.ȱȱ ȱ ȱ

Migrant Remittance Flows: Findings from a Global Survey of Central Banks

11

Regulation and Supervision of Remittance Transfers
SupervisionȱofȱcrossȬborderȱremittancesȱvariesȱconsiderablyȱacrossȱremittanceȱservicesȱ providers.16ȱ Newȱ entrantsȱ toȱ theȱ market,ȱ suchȱ asȱ mobileȱ moneyȱ transferȱ serviceȱ providers,ȱ areȱ reportedlyȱ notȱ yetȱ veryȱ activeȱ inȱ transferringȱ crossȬborderȱ remittanceȱ flows.ȱMobileȱphoneȱserviceȱprovidersȱhandledȱcrossȬborderȱtransactionsȱinȱonlyȱfourȱ remittanceȬreceivingȱ countriesȱ (Brazil,ȱ Indonesia,ȱ Mexico,ȱ andȱ theȱ Philippines)ȱ atȱ theȱ timeȱofȱtheȱsurveyȱandȱinȱfourȱ(11ȱpercentȱof)ȱremittanceȬsendingȱcountries.ȱAnecdotalȱ evidenceȱ suggests,ȱ however,ȱ thatȱ theseȱ newȱ typesȱ ofȱ RSPsȱ areȱ becomingȱ increasinglyȱ activeȱ inȱ domesticȱ remittanceȱ transfersȱ inȱ manyȱ developingȱ countries.ȱ Inȱ remittanceȬ receivingȱcountries,ȱbanksȱareȱtheȱmostȱcommonȱtypeȱofȱRSPȱinvolvedȱinȱtransferringȱ crossȬborderȱ remittances,ȱ followedȱ byȱ moneyȱ transferȱ operators,ȱ postȱ offices,ȱ andȱ exchangeȱbureausȱ(tableȱ2.3).ȱInȱremittanceȬsendingȱcountries,ȱbanksȱareȱalsoȱtheȱmostȱ commonȱ providersȱ ofȱ crossȬborderȱ remittanceȱ services,ȱ closelyȱ followedȱ byȱ moneyȱ transferȱoperators,ȱwithȱexchangeȱbureausȱrankingȱthird.ȱȱ ȱ
Table 2.3. Many Remittance Services Providers (Particularly Newer Entrants) Are Not Supervised
Remittance-receiving countries
Number of countries where these RSPs are supervised (b) Percent of countries (in column a) where these RSPs are supervised (c)=(b)÷(a)

Remittance-sending countries
Number of countries where these RSPs are supervised (e) Percent of countries (in column d) where these RSPs are supervised (f)=(e)÷(d)

Number of countries where these RSPs operate (a)

Number of countries where these RSPs operate (d)

Commercial banks Money transfer operators Post offices Exchange bureaus Credit unions, savings cooperatives, and savings and loan institutions Microfinance institutions Mobile phone service providers Other financial institutions Other nonfinancial institutions

62 51 35 14

58 39 22 13

94 76 63 93

18 17 9 11

16 16 8 10

89 94 89 91

13 9 4 8 9

11 6 3 8 7

85 67 75 100 78

9 0 4 3 3

8 0 3 2 3

89 0 75 67 100

Source:ȱAuthors’ȱcalculationsȱbasedȱonȱsurveyȱresponses.ȱ Note:ȱ Tableȱ dataȱ coverȱ theȱ 77ȱ remittanceȬreceivingȱ countriesȱ thatȱ hadȱ respondedȱ toȱ versionȱ 1ȱ ofȱ theȱ surveyȱ andȱ theȱ 35ȱ remittanceȬsendingȱ countriesȱ thatȱ hadȱ respondedȱ toȱ versionȱ 2ȱ ofȱ theȱ surveyȱ byȱ Decemberȱ2009.ȱ

ȱ Notȱ surprisingly,ȱ manyȱ ofȱ theȱ newerȱ marketȱ entrants’ȱ remittanceȱ servicesȱ areȱ unregulated.ȱ Inȱ 33ȱ percentȱ ofȱ theȱ remittanceȬreceivingȱ countriesȱ whereȱ microfinanceȱ institutionsȱ operateȱ andȱ inȱ oneȱ outȱ ofȱ theȱ fourȱ remittanceȬreceivingȱ countriesȱ whereȱ mobileȱphoneȱserviceȱprovidersȱoperate,ȱremittanceȱservicesȱprovidedȱbyȱtheseȱtypesȱofȱ

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institutionsȱ areȱ notȱ subjectȱ toȱ anyȱ supervisoryȱ authority.ȱ Thereȱ wasȱ noȱ supervisoryȱ institutionȱforȱpostȱofficesȱundertakingȱtheseȱactivitiesȱinȱ37ȱpercentȱofȱtheȱremittanceȬ receivingȱ countriesȱ whereȱ theyȱ operate.ȱ Evenȱ theȱ remittanceȱ servicesȱ providedȱ byȱ commercialȱbanksȱinȱ6ȱpercentȱofȱremittanceȬreceivingȱcountriesȱareȱnotȱsubjectȱtoȱanyȱ supervisoryȱ authority.ȱ Moneyȱ transferȱ operators’ȱ remittanceȱ servicesȱ areȱ reportedlyȱ overseenȱ byȱ supervisoryȱ authoritiesȱ inȱ justȱ overȱ threeȬquartersȱ ofȱ theȱ remittanceȬ receivingȱcountriesȱinȱwhichȱtheyȱoperate.ȱInȱanȱevenȱhigherȱproportionȱofȱremittanceȬ sendingȱ countries,ȱ remittanceȱ outflowsȱ byȱ banksȱ andȱ exchangeȱ bureausȱ areȱ notȱ supervisedȱbyȱanyȱnationalȱentity.ȱȱ DataȱcollectionȱfromȱnonȬbankȱRSPsȱappearsȱtoȱbeȱinfluencedȱbyȱtheȱrequirementȱ forȱ partnershipsȱ withȱ banks.ȱ Centralȱ banksȱ areȱ moreȱ likelyȱ toȱ collectȱ dataȱ fromȱ nonȬ bankȱ RSPsȱ inȱ countriesȱ thatȱ doȱ notȱ requireȱ aȱ nonȬbankȱ RSPȱ toȱ partnerȱ withȱ aȱ bank.ȱ MTOsȱandȱpostȱofficesȱinȱdevelopingȱcountriesȱareȱmoreȱlikelyȱtoȱreportȱinflowsȱtoȱtheȱ centralȱbankȱinȱcountriesȱthatȱdoȱnotȱrequireȱnonȬbankȱRSPsȱtoȱoperateȱinȱpartnershipsȱ withȱbanks.ȱȱ AntiȬmoneyȱ launderingȱ andȱ combatingȱ theȱ financingȱ ofȱ terrorismȱ (AMLȬCFT)ȱ appearsȱtoȱbeȱaȱhighȱpriorityȱforȱcountriesȱparticipatingȱinȱtheȱsurvey.ȱInȱspiteȱofȱthis,ȱ thereȱseemsȱtoȱbeȱaȱlackȱofȱclarityȱinȱtheȱapplicationȱofȱAMLȬCFTȱregulationsȱforȱRSPsȱ inȱremittanceȬreceivingȱandȱsendingȱcountries.ȱManyȱcentralȱbanksȱhaveȱrecentlyȱorȱareȱ currentlyȱ puttingȱ inȱ placeȱ institutionalȱ frameworksȱ andȱ regulationsȱ toȱ betterȱ monitorȱ suspiciousȱ crossȬborderȱ transactions.ȱ ThreeȬquartersȱ ofȱ centralȱ banksȱ inȱ remittanceȬ receivingȱ countriesȱ reportedȱ beingȱ involvedȱ inȱ developingȱ orȱ implementingȱ nationalȱ policiesȱ relatedȱ toȱ AMLȬCFT.ȱ However,ȱ theȱ centralȱ bankȱ enforcesȱ sanctionsȱ inȱ justȱ underȱ oneȬthirdȱ ofȱ theȱ remittanceȬreceivingȱ countries,ȱ whileȱ aȱ separateȱ nationalȱ authorityȱspecificallyȱchargedȱwithȱpreventingȱmoneyȱlaunderingȱenforcesȱsanctionsȱinȱ 34ȱpercentȱofȱ theseȱcountries,ȱandȱtheȱministryȱofȱfinanceȱisȱinvolvedȱinȱ19ȱpercentȱofȱ theseȱ countries.ȱ Inȱ nineȱ (12ȱ percentȱ of)ȱ remittanceȬreceivingȱ countries,ȱ theȱ firstȱ twoȱ institutionsȱ workȱ togetherȱ toȱ enforceȱ sanctions;ȱ inȱ threeȱ ofȱ theseȱ countries,ȱ theȱ twoȱ institutionsȱ alsoȱ workȱ togetherȱ withȱ theȱ financeȱ ministry.ȱ Theȱ ministryȱ ofȱ financeȱ isȱ involvedȱ inȱ enforcingȱ antiȬmoneyȬlaunderingȱ sanctionsȱ inȱ nearlyȱ oneȬfifthȱ ofȱ remittanceȬreceivingȱ countries.ȱ Otherȱ nationalȱ orȱ regionalȱ entitiesȱ involvedȱ inȱ enforcingȱ antiȬmoneyȬlaunderingȱ sanctionsȱ includeȱ theȱ financialȱ intelligenceȱ unit,ȱ theȱ financialȱsystemȱsuperintendency,ȱtheȱcriminalȱ prosecutor,ȱtheȱministryȱofȱjusticeȱandȱ anticorruptionȱ commission,ȱ andȱ variousȱ otherȱ judicial,ȱ anticorruption,ȱ andȱ financialȱ intelligenceȱunits.ȱȱ Inȱ remittanceȬsendingȱ countries,ȱ justȱ overȱ halfȱ ofȱ centralȱ banksȱ (19ȱ outȱ ofȱ 35)ȱ surveyedȱindicatedȱthatȱtheyȱwereȱinvolvedȱinȱdevelopingȱorȱimplementingȱAMLȬCFTȱ regulations.ȱ Centralȱ banksȱ inȱ considerablyȱ fewerȱ (justȱ overȱ oneȬfifthȱ of)ȱ remittanceȬ sendingȱcountriesȱreportedȱbeingȱinvolvedȱinȱenforcingȱAMLȬCFTȱsanctions.17ȱȱ Inȱ68ȱpercentȱofȱremittanceȬreceivingȱcountries,ȱcommercialȱbanksȱareȱrequiredȱtoȱ fileȱsuspiciousȱactivityȱ reportsȱwithȱvariousȱnationalȱauthorities,ȱincludingȱtheȱcentralȱ bank,ȱ financeȱ ministry,ȱ financialȱ intelligenceȱ units,ȱ andȱ otherȱ nationalȱ agenciesȱ withȱ responsibilityȱ forȱ financialȱ crimesȱ andȱ antiȬmoneyȱ laundering.ȱ Commercialȱ banksȱ areȱ requiredȱ toȱ fileȱ currencyȱ transactionȱ reportsȱ inȱ 70ȱ percentȱ ofȱ remittanceȬreceivingȱ countries.ȱHowever,ȱonlyȱ34ȱpercentȱofȱremittanceȬreceivingȱcountriesȱreportȱrequiringȱ MTOsȱ toȱ fileȱ suspiciousȱ activityȱ reportsȱ directlyȱ withȱ nationalȱ authorities.ȱ MTOsȱ areȱ

Migrant Remittance Flows: Findings from a Global Survey of Central Banks

13

requiredȱ toȱ fileȱ currencyȱ transactionȱ reportsȱ inȱ 35ȱ percentȱ ofȱ remittanceȬreceivingȱ countries.ȱ Inȱ Algeria,ȱ Rwanda,ȱ andȱ Uganda,ȱ currencyȱ transactionȱ reportsȱ andȱ suspiciousȱ activityȱ reportsȱ areȱ filedȱ byȱ partnerȱ banksȱ orȱ banksȱ whereȱ MTOsȱ haveȱ accounts.ȱ Byȱ comparison,ȱ aȱ smallerȱ fractionȱ (40ȱ percent)ȱ ofȱ surveyedȱ remittanceȬsendingȱ countriesȱ reportȱ requiringȱ commercialȱ banksȱ toȱ fileȱ suspiciousȱ activityȱ reportsȱ withȱ nationalȱ authorities,ȱ andȱ 17ȱ percentȱ reportȱ requiringȱ currencyȱ transactionȱ reports.ȱ ThirtyȬfourȱ percentȱ ofȱ remittanceȬsendingȱ countriesȱ requireȱ MTOsȱ toȱ fileȱ suspiciousȱ activityȱreports,ȱaccordingȱtoȱtheȱsurveyȱresults,ȱwhileȱ14ȱpercentȱrequireȱMTOsȱtoȱfileȱ currencyȱ transactionȱ reports.ȱ Italyȱ requiresȱ currencyȱ transactionȱ reportsȱ fromȱ commercialȱbanksȱandȱMTOsȱonlyȱwhenȱaȱtransactionȱisȱconsideredȱsuspicious.ȱ TheseȱreportingȱrequirementsȱareȱlessȱwidelyȱenforcedȱforȱotherȱtypesȱofȱRSPsȱ(forȱ example,ȱ postȱ officesȱ andȱ microfinanceȱ institutions).ȱ Justȱ underȱ oneȬquarterȱ ofȱ surveyedȱ remittanceȬreceivingȱ countriesȱ requireȱ postȱ officesȱ toȱ fileȱ suspiciousȱ activityȱ reports,ȱ andȱ onlyȱ fiveȱ countriesȱ requireȱ suchȱ reportsȱ fromȱ MFIs.ȱ Forȱ remittanceȬ sendingȱcountries,ȱjustȱ overȱ oneȬquarterȱ requireȱpostȱofficesȱtoȱfileȱsuspiciousȱactivityȱ reports,ȱandȱonlyȱthreeȱcountriesȱrequireȱsuchȱreportsȱfromȱMFIs.ȱ Theseȱ responsesȱ suggestȱ aȱ lackȱ ofȱ clarityȱ onȱ howȱ broaderȱ regulationsȱ relatedȱ toȱ antiȬmoneyȱ launderingȱ andȱ combatingȱ theȱ financingȱ ofȱ terrorismȱ (AMLȬCFT)ȱ areȱ appliedȱtoȱspecificȱtypesȱofȱremittanceȱserviceȱproviders.ȱȱ

Remittance Costs
Theȱ majorityȱ ofȱ centralȱ bankȱ respondentsȱ inȱ bothȱ remittanceȬreceivingȱ andȱ Ȭsendingȱ countriesȱcitedȱhighȱcostȱasȱtheȱtopȱsingleȱfactorȱinhibitingȱmigrantsȱfromȱusingȱformalȱ channelsȱ forȱ remittanceȱ transfersȱ (figureȱ 2.3).18ȱ Afterȱ highȱ cost,ȱ lackȱ ofȱ aȱ bankȱ branchȱ nearȱ theȱ intendedȱ recipient,ȱ andȱ recipients’/senders’ȱ lackȱ ofȱ accessȱ toȱ bankȱ accounts,ȱ rankedȱ asȱ theȱ secondȱ mostȱ citedȱ impedimentsȱ overall,ȱ althoughȱ forȱ remittanceȬ receivingȱ countriesȱ recipients’ȱ mistrustȱ ofȱ and/orȱ lackȱ ofȱ informationȱ onȱ electronicȱ transfersȱrankedȱnearlyȱasȱhighly.ȱForȱremittanceȬsourceȱcountries,ȱsendersȇ/recipientsȇȱ lackȱ ofȱ validȱ IDȱ rankedȱ asȱ highly.ȱ Notably,ȱ twoȬthirdsȱ ofȱ theȱ remittanceȬreceivingȱ countries’ȱcentralȱbanksȱandȱ46ȱpercentȱofȱremittanceȬsendingȱcountries’ȱcentralȱbanksȱ citedȱfactorsȱthat,ȱtakenȱtogether,ȱindicateȱmistrustȱofȱand/orȱlackȱofȱinformationȱonȱandȱ accessȱ toȱ financialȱ systems,ȱ products,ȱ andȱ institutionsȱ areȱ majorȱ factorsȱ inhibitingȱ greaterȱaccessȱtoȱformalȱchannels.ȱȱ Forȱ theȱ SubȬSaharanȱ Africanȱ countries’ȱ centralȱ banksȱ thatȱ participatedȱ inȱ theȱ survey,19ȱ highȱ costȱ wasȱ mostȱ oftenȱ citedȱ asȱ theȱ topȱ factorȱ inhibitingȱ migrantsȱ fromȱ usingȱ formalȱ channelsȱ forȱ remittanceȱ transfers.ȱ SixtyȬeightȱ percentȱ ofȱ SubȬSaharanȱ Africanȱ countries’ȱ centralȱ banksȱ citedȱ highȱ costȱ aȱ majorȱ inhibitingȱ factorȱ (figureȱ 2.4),ȱ whileȱ absenceȱ ofȱ aȱ bankȱ branchȱ nearȱ theȱ beneficiaryȱ andȱ recipients’ȱ lackȱ ofȱ accessȱ toȱ bankȱaccountsȱwereȱtheȱsecondȬȱandȱthirdȬhighestȱrankingȱfactorsȱ(citedȱbyȱ64ȱpercentȱ andȱ 61ȱ percent,ȱ respectively).ȱ Althoughȱ centralȱ banksȱ inȱ SubȬSaharanȱ Africaȱ reportedȱ theȱsameȱtopȱsevenȱfactorsȱasȱinhibitingȱtheȱuseȱofȱformalȱchannelsȱasȱdidȱallȱsurveyedȱ countries,ȱ aȱ correspondinglyȱ higherȱ shareȱ ofȱ SubȬSaharanȱ Africanȱ respondentsȱ citedȱ theseȱfactors,ȱwithȱtheȱexceptionȱofȱmistrustȱofȱand/orȱlackȱofȱinformationȱonȱelectronicȱ transfers.ȱ ȱ ȱ

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ȱ
Figure 2.3. High Cost was Cited as the Top Single Factor Inhibiting Use of Formal Channels for Remittance Transfers
High cost Sender's/recipient's lack of access to bank accounts No bank branch near beneficiary Mistrust/lack of information on electronic transfers Sender's/recipient's lack of valid ID Mistrust of formal financial institutions Exchange controls 0 10 20 30 40 Remittance-sending countries Remittance-receiving countries 50 60
ȱ

54% 56%

Percent of central banks citing factor as inhibiting use of formal channels

Source:ȱAuthors’ȱcalculationsȱbasedȱonȱsurveyȱresponses.ȱ Note:ȱFigureȱdataȱcoverȱtheȱ77ȱremittanceȬreceivingȱcountriesȱthatȱhadȱrespondedȱtoȱversionȱ1ȱofȱtheȱsurveyȱ andȱtheȱ35ȱremittanceȬsendingȱcountriesȱthatȱhadȱrespondedȱtoȱversionȱ2ȱofȱtheȱsurveyȱbyȱDecemberȱ2009.ȱ

ȱ
Figure 2.4. High Cost Was Strongly Cited as the Top Factor Inhibiting Use of Formal Channels in Sub-Saharan Africa
68% High cost 56% No bank branch near beneficiary Sender's/recipient's lack of access to bank accounts Sender's/recipient's lack of valid ID Mistrust/lack of information on electronic transfers Mistrust of formal financial institutions Exchange controls 0 10 20 30 40

Sub-Saharan African countries Remittance-receiving countries 50 60 70 80
ȱ

Percent of central banks citing factor as inhibiting use of formal channels

Source:ȱAuthors’ȱcalculationsȱbasedȱonȱsurveyȱresponses.ȱȱ Note:ȱ Figureȱ dataȱ coverȱ theȱ 28ȱ SubȬSaharanȱ Africanȱ remittanceȬreceivingȱ countriesȱ thatȱ respondedȱ toȱ versionȱ1ȱofȱtheȱsurvey.ȱ

ȱ

Migrant Remittance Flows: Findings from a Global Survey of Central Banks

15

Requiringȱ MTOsȱ andȱ postȱ officesȱ toȱ workȱ inȱ partnershipȱ withȱ banksȱ isȱ usuallyȱ associatedȱ withȱ aȱ perceptionȱ ofȱ highȱ remittanceȱ costs.20ȱ Aȱ highȱ costȱ ofȱ remittanceȱ services,ȱ citedȱasȱtheȱtopȱfactorȱinhibitingȱ theȱuseȱofȱformalȱ channelsȱ byȱaȱ majorityȱ ofȱ centralȱ banksȱ inȱ developingȱ countries,ȱ appearsȱ toȱ beȱ relatedȱ toȱ theȱ extentȱ toȱ whichȱ moneyȱtransferȱcompaniesȱandȱpostȱofficesȱareȱrequiredȱtoȱoperateȱinȱpartnershipȱwithȱ banksȱ inȱ orderȱ toȱ receiveȱ remittanceȱ inflows.21ȱ SixtyȬnineȱ percentȱ ofȱ remittanceȬ receivingȱ countriesȱ thatȱ requireȱ anȱ MTOȱ toȱ operateȱ inȱ partnershipȱ withȱ aȱ bankȱ citedȱ highȱcostȱasȱaȱfactorȱinhibitingȱtheȱuseȱofȱformalȱremittanceȱchannels,ȱcomparedȱwithȱ44ȱ percentȱ ofȱ countriesȱ thatȱ doȱ notȱ requireȱ suchȱ aȱ partnershipȱ (figureȱ 2.5).22ȱ Withȱ theȱ exceptionȱ ofȱ theȱ Bahamas,ȱ Oman,ȱ Portugal,ȱ Russia,ȱ andȱ Southȱ Africa,ȱ noȱ remittanceȬ sendingȱ countryȱ reportedȱ requiringȱ MTOsȱ toȱ operateȱ inȱ aȱ legalȱ partnershipȱ withȱ aȱ bank.23ȱ ȱ
Figure 2.5. Requiring MTOs to Partner with Banks to Receive Remittance Inflows Is Associated with Perception of High Costs

100 Percent of central banksȱ 80 60 40 20 0 Require partnershipȱ High cost a factorȱ Don't require High cost not a factorȱ
ȱ

31% 56%

69% 44%

Source:ȱAuthors’ȱcalculationsȱbasedȱonȱsurveyȱresponses.ȱ Note:ȱ Figureȱ dataȱ coverȱ theȱ 77ȱ remittanceȬreceivingȱ countriesȱ thatȱ hadȱ respondedȱ toȱ versionȱ 1ȱ ofȱ theȱ surveyȱasȱofȱDecemberȱ2009.ȱȱ

ȱ Tighterȱexchangeȱcontrolsȱareȱalsoȱassociatedȱwithȱtheȱperceptionȱofȱhighȱcostsȱasȱaȱ factorȱ inhibitingȱ theȱ useȱ ofȱ formalȱ remittanceȱ channels.ȱ Theȱ shareȱ ofȱ centralȱ banksȱ inȱ remittanceȬreceivingȱ countriesȱ citingȱ remittanceȱ costsȱ asȱ aȱ factorȱ inhibitingȱ theȱ useȱ ofȱ formalȱremittanceȱchannelsȱisȱ12ȱpercentageȱpointsȱhigherȱinȱthoseȱcountriesȱwhereȱtheȱ recipientsȱ areȱ requiredȱ toȱ convertȱ theȱ remittancesȱ intoȱ localȱ currencyȱ thanȱ itȱ isȱ inȱ countriesȱ thatȱ doȱ notȱ haveȱ aȱ similarȱ conversionȱ requirementȱ (figureȱ 2.6).24ȱ Notȱ surprisingly,ȱtheȱsurveyȱalsoȱfoundȱthatȱlegalȱrequirementsȱforȱnonȬbankȱprovidersȱofȱ remittanceȱ servicesȱ suchȱ asȱ moneyȱ transferȱ agencies,ȱ exchangeȱ bureaus,ȱ andȱ postȱ officesȱtoȱoperateȱonlyȱinȱpartnershipsȱwithȱbanksȱareȱmoreȱcommonȱinȱcountriesȱwithȱ tighterȱexchangeȱcontrols.ȱȱ

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Figure 2.6. Compulsory Conversion of Remittance Inflows into Local Currency Is Associated with Perception of High Costs

100ȱ Percent of central banksȱ 80ȱ 60ȱ 40ȱ 64% 52% 20ȱ 0ȱ Compulsory Conversion High cost a factorȱ No compulsory Conversionȱ High cost not a factorȱ
ȱ

36% 48%

Source:ȱAuthors’ȱcalculationsȱbasedȱonȱsurveyȱresponses.ȱ Note:ȱ Figureȱ dataȱ coverȱ theȱ 77ȱ remittanceȬreceivingȱ countriesȱ thatȱ hadȱ respondedȱ toȱ versionȱ 1ȱ ofȱ theȱ surveyȱasȱofȱDecemberȱ2009.ȱ

ȱ Greaterȱ freedomȱ ofȱ moneyȱ transferȱ agenciesȱ andȱ postȱ officesȱ toȱ operateȱ independentlyȱ ofȱ banksȱ canȱ increaseȱ theȱ degreeȱ ofȱ competitionȱ inȱ theȱ remittanceȱ marketȱ andȱ therebyȱ putȱ downwardȱ pressureȱ onȱ costs.ȱ Allowingȱ aȱ varietyȱ ofȱ wellȱ supervisedȱ andȱ appropriatelyȱ regulatedȱ RSPsȱ toȱ operate,ȱ andȱ liberalizingȱ exchangeȱ controlsȱ suchȱ asȱ requirementsȱ forȱ compulsoryȱ conversionȱ ofȱ remittanceȱ inflowsȱ intoȱ localȱ currencyȱ canȱ encourageȱ theȱ useȱ ofȱ formalȱ remittanceȱ channels,ȱ improveȱ competitionȱ inȱ theȱ remittanceȱ market,ȱ andȱ reduceȱ costs,ȱ ultimatelyȱ benefitingȱ theȱ remittanceȱreceivers.ȱ

Policies to Improve Remittance Transfers
SixtyȬfiveȱpercentȱofȱcentralȱbanksȱinȱremittanceȬreceivingȱcountriesȱandȱ31ȱpercentȱofȱ centralȱ banksȱ inȱ remittanceȬsendingȱ countriesȱ citedȱ betterȱ statisticsȱ andȱ studiesȱ onȱ migrationȱ asȱ theȱ areaȱ mostȱ inȱ needȱ ofȱ attentionȱ (figureȱ 2.7).ȱ Betterȱ statisticsȱ onȱ remittancesȱwasȱcitedȱbyȱaȱsimilarȱshareȱofȱrespondentsȱinȱbothȱgroupsȱ(61ȱpercentȱandȱ 29ȱ percent,ȱ respectively).25ȱ Newȱ technologiesȱ andȱ productsȱ forȱ theȱ provisionȱ ofȱ remittancesȱservicesȱrankedȱalongsideȱtheȱlatterȱfactorȱforȱremittanceȬsourceȱcountries,ȱ andȱ rankedȱ thirdȱ forȱ remittanceȬreceivingȱ countriesȱ (citedȱ byȱ 51ȱ percent).ȱ Deliveryȱ ofȱ remittancesȱ toȱ remoteȱ areasȱ wasȱ theȱ nextȬhighestȱ rankingȱ areaȱ citedȱ forȱ remittanceȬ receivingȱcountriesȱ(citedȱbyȱjustȱunderȱhalf).ȱ ȱ

Migrant Remittance Flows: Findings from a Global Survey of Central Banks

17

Figure 2.7. Better Statistics and Studies Were Top-Cited Areas Needing Attention for Improved Efficiency and Security of Transfers
31% Better statistics & studies on migrants Better statistics on remittances New technologies/ products for providing remittance servces Delivery of remittances to remote areas Increased competition among RSPs 0 Remittance-sending countries Remittance-receiving countries 20 40 60 Percent of central banks citing factor as inhibiting use of formal channels 80
ȱ

65%

Source:ȱAuthors’ȱcalculationsȱbasedȱonȱsurveyȱresponses.ȱ Note:ȱFigureȱdataȱcoverȱtheȱ77ȱremittanceȬreceivingȱcountriesȱthatȱhadȱrespondedȱtoȱversionȱ1ȱofȱtheȱsurveyȱ andȱtheȱ35ȱremittanceȬsendingȱcountriesȱthatȱhadȱrespondedȱtoȱversionȱ2ȱofȱtheȱsurveyȱasȱofȱDecemberȱ2009.ȱ

ȱ Aȱ significantlyȱ higherȱ shareȱ ofȱ centralȱ banksȱ inȱ SubȬSaharanȱ Africaȱ (79ȱ percent)ȱ thanȱinȱremittanceȬreceivingȱcountriesȱasȱaȱwholeȱ(65ȱpercent)ȱcitedȱbetterȱstatisticsȱandȱ studiesȱ onȱ migrationȱ andȱ betterȱ statisticsȱ onȱ remittancesȱ asȱ theȱ areasȱ mostȱ inȱ needȱ ofȱ attentionȱ forȱ moreȱ efficientȱ andȱ secureȱ transferȱ andȱ deliveryȱ ofȱ migrantȱ remittancesȱ (figureȱ2.8).ȱDeliveryȱofȱremittancesȱtoȱremoteȱareasȱwasȱtheȱnextȬhighestȱrankingȱareaȱ needingȱattention,ȱcitedȱbyȱ64ȱpercentȱofȱSubȬSaharanȱAfricanȱcentralȱbanks,ȱfollowedȱ byȱaȱneedȱforȱincreasedȱcompetitionȱamongȱRSPsȱ(citedȱbyȱhalf).ȱȱ ȱ
Figure 2.8. Better Statistics and Studies on Migration Was Cited by Nearly 80 Percent of Sub-Saharan African Respondents as Needing Attention for Improved Efficiency and Delivery of Remittances
Better statistics & studies on migrants Better statistics on remittances Delivery of remittances to remote areas Increased competition among RSPs New technologies/ products for providing remittance servces 0 Sub-Saharan African countries Remittance-receiving countries 20 40 60 80 100 Percent of central banks citing factor as inhibiting use of formal channels ȱ 79% 65%

Source:ȱAuthors’ȱcalculationsȱbasedȱonȱsurveyȱresponses.ȱ Note:ȱFigureȱdataȱcoverȱtheȱ28ȱSubȬSaharanȱAfricanȱremittanceȬreceivingȱcountriesȱthatȱhadȱrespondedȱ toȱversionȱ1ȱofȱtheȱsurvey.ȱ

ȱ

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Justȱ underȱ oneȬthirdȱ ofȱ remittanceȬreceivingȱ countriesȱ indicatedȱ thatȱ thereȱ areȱ policyȱinitiativesȱplannedȱorȱunderwayȱtoȱexpandȱtheȱoutreachȱofȱremittanceȱservicesȱtoȱ ruralȱ areas.26ȱ Developingȱ newȱ technologiesȱ forȱ remittanceȱ delivery—mobileȱ phone,ȱ Internet,ȱ cashȱ cards,ȱ ATMs—wasȱ citedȱ byȱ oneȬquarterȱ ofȱ thoseȱ indicatingȱ thatȱ theyȱ haveȱsuchȱinitiativesȱasȱtheȱmeansȱofȱdoingȱso.ȱ Amongȱ thoseȱ countriesȱ thatȱ haveȱ policyȱ initiativesȱ plannedȱ orȱ underwayȱ forȱ expandingȱ accessȱ toȱ remittanceȱ servicesȱ inȱ remoteȱ areas,ȱ 38ȱ percentȱ ofȱ respondentsȱ indicateȱ someȱ roleȱ forȱ banks,ȱ whetherȱ aloneȱ orȱ inȱ partnershipȱ withȱ otherȱ RSPs.ȱ Encouragingȱ banksȱ toȱ expandȱ branchȱ networksȱ toȱ ruralȱ areasȱ andȱ plansȱ toȱ “bankȱ theȱ unbanked”ȱ togetherȱ wereȱ citedȱ byȱ oneȬquarterȱ ofȱ theseȱ respondents,ȱ whileȱ 8ȱ percentȱ indicatedȱ plansȱ toȱ encourageȱ partnershipsȱ betweenȱ banksȱ andȱ MTOsȱ orȱ nonȬ governmentalȱorganizationsȱtoȱbetterȱserveȱruralȱlocations.ȱ Inȱ manyȱ remittanceȬreceivingȱ countries,ȱ thereȱ areȱ alsoȱ initiativesȱ underwayȱ thatȱ provideȱ forȱ aȱ largerȱ roleȱ forȱ nonȬbankȱ RSPs.ȱ Thirteenȱ percentȱ ofȱ respondentsȱ inȱ remittanceȬreceivingȱ countriesȱ thatȱ indicatedȱ thatȱ theyȱ haveȱ policyȱ initiativesȱ forȱ expandingȱ accessȱ toȱ remittanceȱ servicesȱ inȱ remoteȱ areasȱ specificallyȱ citedȱ plansȱ toȱ newlyȱ allowȱ orȱ furtherȱ encourageȱ microfinanceȱ institutionsȱ toȱ deliverȱ remittancesȱ toȱ beneficiaries.ȱ Fortyȱ percentȱ ofȱ centralȱ banksȱ inȱ remittanceȬreceivingȱ countriesȱ reportedȱ providingȱ someȱ typeȱ ofȱ incentiveȱ forȱ migrantsȱ toȱ transferȱ theirȱ moneyȱ backȱ home.27ȱ ThirtyȬsixȱ percentȱ ofȱ centralȱ banksȱ reportȱ providingȱ attractiveȱ investmentȱ options,ȱ 14ȱ percentȱ provideȱ taxȱ breaks,ȱ andȱ 10ȱ percent28ȱ provideȱ matchingȱ fundsȱ forȱ investmentȱ projects.ȱ Aȱ fewȱ provideȱ otherȱ typesȱ ofȱ incentivesȱ forȱ migrants.ȱ Forȱ example,ȱ theȱ authoritiesȱandȱbanksȱinȱBurkinaȱFasoȱhaveȱundertakenȱinformationȱcampaignsȱtoȱtapȱ intoȱ theȱ savingsȱ ofȱ migrantsȱ livingȱ inȱ Côteȱ d’Ivoireȱ andȱ Italyȱ andȱ toȱ encourageȱ investmentȱ inȱ land,ȱ especiallyȱ inȱ ruralȱ andȱ underdevelopedȱ areas.ȱ Peruȱ recentlyȱ introducedȱaȱgovernmentȱfinancingȱprogramȱforȱrealȱestateȱinvestmentȱbyȱmigrantsȱforȱ lowȬincomeȱhousing.ȱȱ TwentyȬthreeȱ percentȱ ofȱ centralȱ banksȱ inȱ remittanceȬreceivingȱ countriesȱ reportedȱ havingȱ initiativesȱ toȱ reduceȱ costs,ȱ increaseȱ competition,ȱ andȱ fosterȱ theȱ useȱ ofȱ formalȱ channels.ȱBangladeshȱallowsȱMFIsȱtoȱdeliverȱremittancesȱinȱruralȱareasȱinȱpartnershipȱ withȱbanks.ȱItȱhasȱalsoȱintroducedȱanȱAutomatedȱClearingȱandȱSettlementȱSystemȱforȱ faster,ȱ secure,ȱ andȱ lowȬcostȱ deliveryȱ ofȱ remittances.ȱ Ethiopiaȱ reportedȱ plansȱ toȱ allowȱ institutionsȱ suchȱ asȱ postȱ officesȱ andȱ MFIsȱ toȱ offerȱ remittanceȱ services.ȱ Sierraȱ Leone,ȱ Uganda,ȱandȱZambiaȱareȱencouragingȱmoreȱRSPsȱtoȱenterȱtheȱmarket.ȱȱ Theȱ Albanianȱ centralȱ bankȱ hasȱ introducedȱ anȱ arrayȱ ofȱ measures,ȱ includingȱ designingȱ aȱ communicationȱ strategyȱ toȱ increaseȱ migrants’ȱ awarenessȱ ofȱ bankingȱ productsȱ andȱ transferȱ services,ȱ institutingȱ bilateralȱ agreementsȱ betweenȱ domesticȱ banksȱ andȱ theirȱ counterpartsȱ inȱ importantȱ remittanceȱ sourceȱ countriesȱ (Greeceȱ andȱ Italy),ȱandȱencouragingȱtheȱAlbanianȱpostȱofficeȱtoȱestablishȱcooperationȱarrangementsȱ withȱpostȱofficesȱandȱpostalȱsavingsȱbanksȱinȱmigrantȱhostȱcountries.ȱTheȱPhilippines’ȱ centralȱ bankȱ hasȱ undertakenȱ measuresȱ toȱ increaseȱ theȱ financialȱ literacyȱ ofȱ overseasȱ Filipinoȱ workersȱ andȱ theirȱ beneficiaries,ȱ suchȱ asȱ holdingȱ seminarsȱ bothȱ locallyȱ inȱ theȱ Philippinesȱ andȱ overseas,ȱ whichȱ complementȱ theȱ predepartureȱ orientationȱ sessionsȱ givenȱ byȱ theȱ Philippineȱ Overseasȱ Employmentȱ Administrationȱ (POEA)ȱ thatȱ includeȱ providingȱ informationȱ onȱ availableȱ remittanceȱ channelsȱ asȱ wellȱ asȱ savingsȱ andȱ

Migrant Remittance Flows: Findings from a Global Survey of Central Banks

19

investmentȱopportunities.ȱInȱTajikistan,ȱwhereȱmigrantȱremittancesȱareȱaȱlargeȱshareȱofȱ GDP,ȱtheȱcentralȱbank’sȱeffortsȱareȱaimedȱatȱimprovingȱtheȱpublic’sȱtrustȱinȱtheȱbankingȱ systemȱ inȱ orderȱ toȱ increaseȱ theȱ useȱ ofȱ formalȱ channels.ȱ Fijiȱ andȱ Moldovaȱ alsoȱ haveȱ programsȱtoȱboostȱpublicȱawarenessȱandȱfinancialȱliteracyȱcampaigns.ȱ SeveralȱremittanceȬsourceȱcountriesȱ(26ȱpercent)ȱreportedȱthatȱtheyȱhaveȱinitiativesȱ toȱfosterȱtheȱuseȱofȱformalȱchannelsȱinȱremittanceȱtransfers.ȱGermanyȱandȱNewȱZealandȱ haveȱintroducedȱwebsitesȱthatȱprovideȱinformationȱonȱavailableȱchannelsȱandȱcostsȱforȱ selectedȱ remittanceȱ corridors,ȱ whichȱ canȱ fosterȱ transparencyȱ andȱ theȱ useȱ ofȱ formalȱ remittanceȱ channels.29ȱ Switzerlandȱ providesȱ aȱ brochureȱ withȱ similarȱ informationȱ toȱ migrants.ȱInȱSpain,ȱtheȱgovernmentȱisȱworkingȱtogetherȱwithȱassociationsȱofȱbanksȱandȱ savingȱinstitutionsȱtoȱimproveȱtransparencyȱandȱcompetitionȱinȱtheȱremittanceȱmarket,ȱ reduceȱ costs,ȱ andȱ makeȱ itȱ easierȱ andȱ cheaperȱ toȱ sendȱ remittances.ȱ Theȱ Norwegianȱ authoritiesȱ areȱ consideringȱ possibleȱ changesȱ inȱ regulationsȱ toȱ facilitateȱ remittances.ȱ Russiaȱhasȱaȱpublicȱcampaignȱunderwayȱtoȱincreaseȱfinancialȱliteracy.ȱ

Notes
ȱ

ȱResultsȱbasedȱonȱresponsesȱtoȱquestionsȱ1,ȱ13,ȱ27,ȱandȱ28ȱofȱtheȱsurveyȱquestionnaire.ȱ ȱThereȱisȱreportedlyȱnoȱregularȱdataȱcollectionȱonȱremittanceȱinflowsȱinȱonlyȱoneȱ(1ȱpercent)ȱofȱ theȱ remittanceȬreceivingȱ countriesȱ (Malawi),ȱ althoughȱ evenȱ inȱ thatȱ country,ȱ theȱ centralȱ bankȱ respondentsȱindicatedȱthatȱtheyȱconsideredȱcollectionȱofȱtheseȱdataȱimportantȱbutȱtheyȱlackedȱtheȱ resourcesȱandȱcapacityȱtoȱdoȱso.ȱȱ 3 ȱ Amongȱ remittanceȬsendingȱ countriesȱ whereȱ thereȱ isȱ noȱ regularȱ collectionȱ ofȱ dataȱ onȱ crossȬ borderȱ migrantȱ remittanceȱ flowsȱ areȱ Hongȱ Kong,ȱ China;ȱ Newȱ Zealand;ȱ andȱ Saudiȱ Arabiaȱ (theȱ latterȱcountryȱdidȱnotȱrespondȱtoȱtheȱsurvey).ȱ 4 ȱTheȱperȬtransactionȱreportingȱthresholdȱhasȱrecentlyȱbeenȱraisedȱevenȱhigher,ȱtoȱ€50,000,ȱinȱtheȱ nationalȱlegislationȱofȱmanyȱEuropeanȱcountriesȱforȱcrossȬborderȱtransactionsȱbetweenȱresidentsȱ inȱEUȱmembersȱand/orȱthoseȱofȱIceland,ȱLiechtenstein,ȱNorway,ȱandȱSwitzerland.ȱȱ 5 ȱ Theȱ Bankȱ ofȱ Spainȱ Balanceȱ ofȱ Paymentsȱ Divisionȱ specificallyȱ reportedȱ thatȱ theȱ higherȱ priorityȱ thatȱ itȱ hasȱ beenȱ accordingȱ toȱ remittanceȱ dataȱ compilationȱ effortsȱ hasȱ beenȱ promptedȱ atȱ leastȱ partlyȱbyȱtheȱhigherȱEUȱreportingȱthresholds.ȱ 6 ȱDrawsȱonȱtheȱresultsȱofȱresponsesȱtoȱquestionȱ24ȱofȱtheȱsurveyȱquestionnaire.ȱ 7ȱ Accordingȱ toȱ theȱ surveyȱ results,ȱ theȱ mostȱ commonlyȱ citedȱ frequencyȱ forȱ collectingȱ dataȱ andȱ otherȱ informationȱ onȱ remittanceȱ transfersȱ throughȱ formalȱ channelsȱ wasȱ monthlyȱ inȱ bothȱ remittanceȬreceivingȱ andȱ Ȭsourceȱ countriesȱ (citedȱ byȱ 64ȱ percentȱ andȱ 37ȱ percent,ȱ respectively,ȱ ofȱ thoseȱcentralȱbanksȱandȱotherȱinstitutionsȱindicatingȱthatȱtheyȱcollectȱdataȱwithȱsomeȱregularity),ȱ followedȱbyȱquarterlyȱ(20ȱpercentȱandȱ23ȱpercent,ȱrespectively).ȱȱ 8 ȱDrawsȱonȱtheȱresultsȱofȱresponsesȱtoȱquestionȱ25ȱofȱtheȱsurveyȱquestionnaire.ȱ 9 ȱDrawsȱonȱtheȱresultsȱofȱresponsesȱtoȱquestionȱ2ȱofȱtheȱsurveyȱquestionnaire.ȱ 10 ȱ Inȱ someȱ countries,ȱ figuresȱ citedȱ inȱ pressȱ reportsȱ areȱ significantlyȱ higherȱ thanȱ thatȱ reportedȱ eitherȱinȱtheȱbalanceȱofȱpaymentsȱstatisticsȱorȱinȱtheȱcentralȱbankȱsurvey.ȱForȱexample,ȱinȱtheȱcaseȱ ofȱ Tanzania,ȱ theȱ figureȱ forȱ remittanceȱ inflowsȱ citedȱ inȱ theȱ pressȱ isȱ inȱ theȱ rangeȱ ofȱ $300ȱ million,ȱ whileȱthatȱreportedȱtoȱtheȱIMFȱandȱtheȱcentralȱbankȱsurveyȱwasȱ$15ȱmillion.ȱȱ 11 ȱ Remittanceȱ inflowȱ figuresȱ reportedȱ toȱ theȱ IMFȱ asȱ ofȱ midȬ2008ȱ wereȱ $172ȱ millionȱ forȱ Ethiopiaȱ (subsequentlyȱ revisedȱ upȱ toȱ $359ȱ millionȱ atȱ theȱ timeȱ ofȱ writingȱ thisȱ paper);ȱ $994ȱ millionȱ forȱ Lithuaniaȱ(revisedȱtoȱ$1,427ȱmillion);ȱandȱ$38ȱmillionȱforȱSierraȱLeoneȱ(revisedȱtoȱ$148ȱmillion).ȱ 12 ȱTheȱdiscrepancyȱforȱDenmark,ȱFinland,ȱGermany,ȱGreece,ȱandȱJapanȱwasȱinȱtheȱrangeȱofȱ8–18ȱ percent,ȱlikelyȱexplainedȱbyȱreportingȱlags.ȱ 13 ȱSeeȱIMFȱ(1993)ȱandȱWorldȱBankȱ(2005),ȱrespectively.ȱ
1 2

ȱ

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ȱ
ȱSeeȱIMFȱ(2009a).ȱ ȱDrawsȱonȱtheȱresultsȱofȱresponsesȱtoȱquestionȱ20ȱofȱtheȱsurveyȱquestionnaire.ȱ 16 ȱDrawsȱonȱtheȱresultsȱofȱresponsesȱtoȱquestionȱ33ȱofȱtheȱsurveyȱquestionnaire.ȱ 17 ȱOtherȱinstitutionsȱ(forȱexample,ȱtheȱFinancialȱRegulatorȱinȱIreland,ȱHerȱMajesty’sȱRevenueȱandȱ CustomsȱinȱtheȱUnitedȱKingdom,ȱandȱtheȱMinistryȱofȱFinanceȱinȱItaly)ȱworkȱinȱcooperationȱwithȱ lawȱ enforcementȱ authoritiesȱ toȱ enforceȱ sanctionsȱ rangingȱ fromȱ fines,ȱ freezingȱ ofȱ funds,ȱ withdrawalȱofȱbankingȱlicense,ȱandȱevenȱimprisonment.ȱ 18 Drawsȱonȱtheȱresultsȱofȱresponsesȱtoȱquestionȱ103ȱofȱtheȱsurveyȱquestionnaire.ȱ 19 ȱRefersȱtoȱtheȱ28ȱSubȬSaharanȱAfricanȱcountries,ȱexcludingȱSouthȱAfrica,ȱwhichȱhadȱcompletedȱ theȱsurveyȱasȱofȱDecemberȱ2009.ȱ 20 ȱDrawsȱonȱtheȱresultsȱofȱresponsesȱtoȱquestionsȱ34ȱandȱ103ȱofȱtheȱsurveyȱquestionnaire.ȱ 21 ȱ Theȱ remittanceȬreceivingȱ countriesȱ thatȱ reportedȱ requiringȱ firmsȱ specializingȱ inȱ moneyȱ transfersȱ (suchȱ asȱ Westernȱ Unionȱ andȱ Moneygram)ȱ toȱ operateȱ inȱ partnershipȱ withȱ banksȱ toȱ receiveȱ remittanceȱ inflowsȱ areȱ Albania,ȱ Algeria,ȱ Armenia,ȱ Azerbaijan,ȱ Bangladesh,ȱ Belarus,ȱ Brazil,ȱ Burkinaȱ Faso,ȱ Burundi,ȱ Eritrea,ȱ Ethiopia,ȱ GuineaȬBissau,ȱ Haiti,ȱ India,ȱ Lithuania,ȱ Mali,ȱ Morocco,ȱ Mozambique,ȱ Niger,ȱ Nigeria,ȱ Romania,ȱ Rwanda,ȱ Senegal,ȱ Sierraȱ Leone,ȱ Tajikistan,ȱ Tanzania,ȱTunisia,ȱTurkey,ȱandȱUganda.ȱ 22 ȱ Thatȱ is,ȱ 20ȱ centralȱ banks—orȱ 69ȱ percentȱ ofȱ theȱ totalȱ 29ȱ centralȱ banksȱ inȱ remittanceȬreceivingȱ countriesȱ respondingȱ toȱ thisȱ questionȱ thatȱ doȱ requireȱ anȱ MTOȱ toȱ operateȱ inȱ partnershipȱ withȱ aȱ bank—citedȱhighȱcostȱasȱaȱfactorȱinhibitingȱtheȱuseȱofȱformalȱremittanceȱchannels.ȱThisȱcomparesȱ withȱ 11ȱ centralȱ banks—orȱ 44ȱ percentȱ ofȱ theȱ totalȱ 25ȱ centralȱ banksȱ inȱ remittanceȬreceivingȱ countriesȱrespondingȱtoȱthisȱquestionȱthatȱdoȱnotȱrequireȱanȱMTOȱtoȱoperateȱinȱpartnershipȱwithȱaȱ bank—thatȱcitedȱhighȱcostȱasȱaȱfactorȱinhibitingȱtheȱuseȱofȱformalȱremittanceȱchannels.ȱ 23 ȱDrawsȱonȱtheȱresultsȱofȱresponsesȱtoȱquestionȱ34ȱofȱtheȱsurveyȱquestionnaire.ȱ 24 ȱDrawsȱonȱtheȱresultsȱofȱresponsesȱtoȱquestionsȱ78ȱandȱ103ȱofȱtheȱsurveyȱquestionnaire.ȱSixteenȱ centralȱbanks—orȱsixtyȬfourȱpercentȱofȱtheȱtotalȱ25ȱcentralȱbanksȱinȱremittanceȬreceivingȱcountriesȱ respondingȱ toȱ thisȱ questionȱ thatȱ doȱ requireȱ recipientsȱ toȱ convertȱ theirȱ remittancesȱ intoȱ localȱ currency—citedȱremittanceȱcostsȱasȱaȱfactorȱinhibitingȱtheȱuseȱofȱformalȱremittanceȱchannels.ȱThisȱ comparesȱwithȱ27ȱcentralȱbanks—orȱfiftyȬtwoȱpercentȱofȱtheȱtotalȱ52ȱcentralȱbanksȱinȱremittanceȬ receivingȱ countriesȱ respondingȱ toȱ thisȱ questionȱ thatȱ doȱ notȱ requireȱ recipientsȱ toȱ convertȱ theirȱ remittancesȱintoȱlocalȱcurrency—thatȱcitedȱremittanceȱcostsȱasȱaȱfactorȱinhibitingȱtheȱuseȱofȱformalȱ remittanceȱchannels.ȱ 25 ȱDrawsȱonȱtheȱresultsȱofȱresponsesȱtoȱquestionȱ89ȱofȱtheȱsurveyȱquestionnaire.ȱ 26 ȱDrawsȱonȱtheȱresultsȱofȱresponsesȱtoȱquestionsȱ86ȱandȱ87ȱofȱtheȱsurveyȱquestionnaire.ȱ 27 ȱDrawsȱonȱtheȱresultsȱofȱresponsesȱtoȱquestionȱ105ȱofȱtheȱsurveyȱquestionnaire.ȱ 28 ȱ Theseȱ countriesȱ includeȱ Belarus,ȱ Capeȱ Verde,ȱ Elȱ Salvador,ȱ Haiti,ȱ Honduras,ȱ Mexico,ȱ Sierraȱ Leone,ȱandȱTunisia.ȱ 29 ȱ Theȱ objectivesȱ areȱ similarȱ toȱ thoseȱ ofȱ theȱ Unitedȱ Kingdomȱ Departmentȱ forȱ Internationalȱ Development’sȱ sendmoneyhome.orgȱ website.ȱ Newȱ Zealand’sȱ effortsȱ areȱ partȱ ofȱ aȱ broaderȱ Newȱ ZealandȬPacificȱRemittanceȱProjectȱtoȱreduceȱtheȱaverageȱtotalȱtransactionalȱcostȱofȱremittancesȱtoȱ lessȱ thanȱ 5ȱ percentȱ byȱ increasingȱ accessȱ toȱ bankingȱ servicesȱ andȱ products,ȱ promotingȱ competition,ȱ andȱ disseminatingȱ financialȱ capabilityȱ informationȱ andȱ educationȱ aboutȱ availableȱ moneyȱtransferȱmethodsȱandȱassociatedȱcosts.ȱ
14 15

CHAPTERȱ3ȱ

PolicyȱImplicationsȱ

urveyȱfindingsȱdrawȱattentionȱtoȱaȱsignificantȱlackȱofȱcoordinationȱbyȱmanyȱcentralȱ banksȱinȱdataȱcollection,ȱatȱaȱfewȱdifferentȱlevels.ȱCentralȱbanksȱandȱotherȱnationalȱ institutionsȱ responsibleȱ forȱ dataȱ collectionȱ needȱ toȱ improveȱ coordinationȱ inȱ thisȱ area,ȱ withȱmoreȱsystematicȱdataȱandȱinformationȱexchange,ȱbetterȱcommunication,ȱandȱmoreȱ effectiveȱ divisionȱ ofȱ laborȱ toȱ avoidȱ duplicationȱ ofȱ efforts.ȱ Betterȱ coordinationȱ inȱ dataȱ collectionȱneedsȱtoȱoccurȱbothȱacrossȱinstitutionsȱandȱamongȱdifferentȱdivisionsȱwithinȱ theȱsameȱinstitutionȱinȱaȱnumberȱofȱcountries.ȱȱ Forȱ majorȱ remittanceȱ corridors,ȱ developingȱ someȱ meansȱ ofȱ regular,ȱ moreȱ systematicȱ sharingȱ ofȱ dataȱ andȱ informationȱ onȱ migrantȱ remittanceȱ flowsȱ betweenȱ counterpartȱnationalȱinstitutionsȱisȱalsoȱimportant,ȱinȱ orderȱtoȱensureȱtheȱformulationȱ ofȱ appropriateȱ nationalȱ policies,ȱ particularlyȱ inȱ responseȱ toȱ suddenȱ andȱ emergingȱ changesȱinȱtheȱsize,ȱcomposition,ȱandȱchannelsȱforȱremittanceȱtransfers.ȱ Althoughȱ96ȱpercentȱofȱremittanceȬreceivingȱcountriesȱhaveȱsomeȱregularȱmeansȱofȱ dataȱ collection,ȱ aȱ majorityȱ ofȱ centralȱ banksȱ inȱ theȱ countriesȱ surveyed,ȱ andȱ nearlyȱ 80ȱ percentȱinȱSubȬSaharanȱAfrica,ȱciteȱaȱneedȱforȱbetterȱstatisticsȱandȱstudiesȱonȱmigrationȱ andȱ remittancesȱ asȱ theȱ mostȱ importantȱ policyȱ areaȱ forȱ improvingȱ theȱ efficiencyȱ andȱ securityȱ ofȱ remittanceȱ transfers.ȱ Itȱ willȱ beȱ importantȱ forȱ centralȱ banksȱ andȱ otherȱ nationalȱ authoritiesȱ responsibleȱ forȱ dataȱ collectionȱ toȱ giveȱ furtherȱ attentionȱ toȱ improvingȱ proceduresȱ forȱ dataȱ collection,ȱ includingȱ byȱ monitoringȱ crossȬborderȱ remittanceȱ flowsȱ dataȱ atȱ higherȱ frequenciesȱ andȱ disaggregatingȱ byȱ sourceȱ countryȱ whereȱ possible.ȱ Forȱ manyȱ remittanceȬreceivingȱ countries,ȱ itȱ willȱ alsoȱ beȱ importantȱ toȱ reviseȱ dataȱ compilationȱ methodsȱ toȱ betterȱ distinguishȱ remittanceȱ inflowsȱ fromȱ otherȱ typesȱ ofȱ inflowsȱ andȱ toȱ disaggregateȱ byȱ remittanceȱ category.ȱ Suchȱ improvementsȱ toȱ dataȱ collectionȱ practicesȱ willȱ beȱ criticalȱ toȱ effectivelyȱ monitoringȱ theseȱ crossȬborderȱ flows,ȱparticularlyȱinȱtheȱfaceȱofȱheightenedȱconcernsȱthatȱtheȱglobalȱfinancialȱcrisis— andȱtheȱensuingȱeconomicȱdownturnsȱinȱaȱnumberȱofȱmigrantȱdestinationȱcountries— haveȱbeenȱnegativelyȱaffectingȱtheȱamountȱofȱcrossȬborderȱmigrantȱremittanceȱflowsȱtoȱ manyȱ remittanceȬreceivingȱ countries.ȱ Moreȱ systematicȱ andȱ frequentȱ dataȱ monitoringȱ andȱevaluation—backedȱbyȱreportingȱregulationsȱtoȱensureȱthatȱtheȱremittanceȱtransferȱ transactionsȱ ofȱ asȱ manyȱ remittanceȱ serviceȱ providersȱ asȱ possibleȱ areȱ captured—couldȱ improveȱtheȱabilityȱofȱpolicyȱmakersȱtoȱdevelopȱbetterȱinformedȱandȱmoreȱappropriateȱ policyȱ responsesȱ toȱ changesȱ inȱ crossȬborderȱ flowsȱ thatȱ couldȱ impactȱ macroeconomicȱ stabilityȱandȱpovertyȱlevels.1ȱItȱwillȱbeȱimportantȱforȱcountriesȱtoȱcontinueȱtoȱbuildȱonȱ theȱ workȱ ofȱ developingȱ standardȱ remittancesȱ conceptsȱ andȱ statisticalȱ definitionsȱ thatȱ ledȱ inȱ 2009ȱ toȱ theȱ sixthȱ editionȱ ofȱ theȱ IMF’sȱ Balanceȱ ofȱ Paymentsȱ andȱ Internationalȱ Investmentȱ Positionȱ Manualȱ (BPM6)ȱ andȱ theȱ IMFȇsȱ Internationalȱ Transactionsȱ inȱ
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Remittances:ȱGuideȱforȱ CompilersȱandȱUsers,ȱbyȱcontinuingȱtoȱexchangeȱinformationȱandȱ conferȱonȱdevelopingȱmoreȱharmonizedȱapproachesȱtoȱdataȱreportingȱandȱcompilationȱ including,ȱ forȱ example,ȱ thresholdsȱ forȱ reportingȱ remittancesȱ sentȱ throughȱ electronicȱ fundȱtransfers.2ȱȱ AsȱnewȱtypesȱofȱRSPȱemerge,ȱitȱwillȱbecomeȱincreasinglyȱimportantȱforȱcountriesȱtoȱ takeȱ intoȱ accountȱ newȱ channelsȱ andȱ technologiesȱ inȱ collectingȱ dataȱ andȱ monitoringȱ remittancesȱ transferredȱ throughȱ theseȱ newȱ channels.ȱ Theseȱ dataȱ andȱ informationȱ willȱ beȱkeyȱtoȱdevelopingȱappropriateȱnationalȱpolicyȱresponses,ȱparticularlyȱforȱcountriesȱ whereȱremittanceȱinflowsȱareȱsignificantȱrelativeȱtoȱtheȱsizeȱofȱtheȱeconomy.ȱ Althoughȱ manyȱ ofȱ theȱ newȱ entrantsȱ toȱ theȱ RSPȱ marketȱ areȱ notȱ yetȱ veryȱ activeȱ inȱ transferringȱcrossȬborderȱremittances,ȱthereȱisȱsignificantȱpotentialȱforȱnewlyȱemergingȱ technologiesȱ andȱ channels,ȱ suchȱ asȱ mobileȱ phoneȱ serviceȱ providers,ȱ toȱ becomeȱ moreȱ significantȱ inȱ futureȱ inȱ crossȬborderȱ remittanceȱ transfers,ȱ particularlyȱ asȱ theyȱ areȱ alreadyȱ presentȱ inȱ someȱ domesticȱ remittanceȱ transferȱ markets.ȱ Givenȱ thatȱ theȱ remittanceȱtransferȱactivitiesȱofȱmanyȱofȱtheȱnewerȱmarketȱentrantsȱareȱnotȱregulatedȱatȱ allȱ inȱ aȱ numberȱ ofȱ countries,ȱ nationalȱ financialȱ marketȱ regulatoryȱ authoritiesȱ andȱ mobileȱphoneȱserviceȱnetworkȱoperatorsȱshouldȱworkȱcloselyȱtoȱstrikeȱtheȱrightȱbalanceȱ inȱregulatingȱtheseȱnewȱtechnologiesȱforȱmoneyȱtransfer.3ȱThisȱwouldȱallowȱforȱbetterȱ monitoringȱandȱunderstandingȱofȱtheȱrisksȱassociatedȱwithȱtheseȱnewȱchannels,ȱasȱwellȱ asȱ reachingȱ theȱ fullȱ potentialȱ ofȱ theseȱ newȱ technologiesȱ inȱ fosteringȱ inexpensiveȱ andȱ efficientȱremittanceȱtransferȱservicesȱtoȱtheȱpoor.ȱ Developingȱnewȱdeliveryȱtechnologies—mobileȱphone,ȱInternet,ȱcashȱcards—isȱoneȱ ofȱ theȱ waysȱ countriesȱ areȱ expandingȱ theȱ reachȱ ofȱ remittancesȱ servicesȱ toȱ ruralȱ areas,ȱ accordingȱtoȱtheȱsurveyȱresults.ȱItȱwouldȱbeȱusefulȱforȱcountriesȱwithȱaȱlargeȱnumberȱofȱ recipientsȱofȱremittancesȱinȱruralȱareasȱtoȱexchangeȱinformationȱandȱlessonsȱlearnedȱonȱ bestȱpractices,ȱandȱshareȱnewȱtechnologiesȱinȱthisȱarea.ȱȱ Thereȱ mayȱ beȱ potentialȱ forȱ certainȱ nonȬbankȱ RSPsȱ toȱ playȱ aȱ greaterȱ roleȱ inȱ provisionȱ ofȱ remittanceȱ servicesȱ toȱ recipientsȱ inȱ ruralȱ areas.ȱ Forȱ example,ȱ forȱ someȱ countries,ȱ itȱ mayȱ makeȱ senseȱ forȱ nationalȱ postalȱ systems,ȱ whereȱ theyȱ haveȱ extensiveȱ ruralȱ branchȱ networks,ȱ toȱ adoptȱ newȱ technologiesȱ forȱ remittanceȱ transfersȱ orȱ formȱ partnershipsȱwithȱMTOsȱorȱotherȱRSPsȱthatȱhaveȱaccessȱtoȱgoodȱtelecomsȱinfrastructureȱ andȱ clearingȱ systems.ȱ Inȱ remittanceȬreceivingȱ countriesȱ whereȱ microfinanceȱ institutionsȱ haveȱ aȱ knownȱ andȱ trustedȱ presenceȱ inȱ ruralȱ areas,ȱ theyȱ mayȱ alsoȱ playȱ aȱ potentiallyȱusefulȱroleȱinȱexpandingȱtheȱoutreachȱofȱremittanceȱdeliveryȱthroughȱformalȱ channelsȱtoȱruralȱareasȱandȱpossiblyȱalsoȱincreaseȱtheȱaccessȱofȱruralȱpopulationsȱthatȱ areȱcurrentlyȱunbankedȱtoȱremittanceȬlinkedȱsavingsȱandȱotherȱfinancialȱproducts.ȱȱ Forȱ manyȱ remittanceȱ corridorsȱ worldwide,ȱ appropriateȱ nationalȱ policiesȱ andȱ initiativesȱ shouldȱ beȱ implementedȱ toȱ addressȱ theȱ highȱ costȱ ofȱ remittanceȱ transfers— citedȱ inȱ theȱ surveyȱ resultsȱ asȱ theȱ topȱ singleȱ factorȱ inhibitingȱ migrantsȱ fromȱ usingȱ formalȱ channels.ȱ Policiesȱ andȱ operatingȱ environmentsȱ thatȱ facilitateȱ theȱ entranceȱ ofȱ newȱ RSPsȱ inȱ theȱ marketȱ tendȱ toȱ leadȱ toȱ aȱ reductionȱ inȱ transferȱ costsȱ andȱ anȱ improvementȱinȱserviceȱquality.4ȱComparedȱwithȱotherȱregions,ȱtheȱcostȱofȱremittanceȱ transfersȱ throughȱ formalȱ channelsȱ toȱ andȱ withinȱ SubȬSaharanȱ Africaȱ stillȱ tendsȱ toȱ beȱ quiteȱhighȱdueȱlargelyȱtoȱnationalȱregulatoryȱframeworksȱthatȱoftenȱdoȱnotȱencourageȱaȱ competitiveȱoperatingȱenvironmentȱforȱRSPs.5ȱRenderingȱitȱillegalȱforȱMTOsȱtoȱrequireȱ exclusivityȱcontractsȱisȱoneȱimportantȱstepȱthatȱhasȱbeenȱtakenȱrecentlyȱbyȱaȱnumberȱofȱ

Migrant Remittance Flows: Findings from a Global Survey of Central Banks

23

nationalȱregulatoryȱauthoritiesȱinȱAfricaȱandȱelsewhere.ȱMakingȱfurtherȱprogressȱtoȱthisȱ endȱ inȱ countriesȱ whereȱ exclusivityȱ contractsȱ remainȱ inȱ effectȱ willȱ beȱ importantȱ toȱ increasingȱcompetitivenessȱandȱreducingȱtransferȱcosts.ȱ Theȱcostȱofȱremittanceȱservicesȱisȱdeterminedȱbyȱpotentialȱcustomers’ȱawarenessȱofȱ choices,ȱasȱwellȱasȱtheȱnumberȱofȱalternativeȱchannelsȱandȱmarketȱcompetitors,ȱamongȱ otherȱfactorsȱ(seeȱRathaȱandȱRiedberg,ȱ2005).ȱThus,ȱanotherȱstepȱtowardȱreducingȱcostsȱ ofȱ remittanceȱ transferȱ wouldȱ beȱ expandingȱ financialȱ literacyȱ campaignsȱ andȱ promotionalȱ effortsȱ thatȱ increaseȱ theȱ public’sȱ trustȱ inȱ banksȱ andȱ otherȱ RSPsȱ andȱ addressȱ theȱ lackȱ ofȱ informationȱ onȱ remittanceȱ productsȱ andȱ channels.ȱ Theseȱ stepsȱ couldȱalsoȱgoȱsomeȱwayȱtowardȱaddressingȱfactorsȱcitedȱbyȱaȱlargeȱmajorityȱofȱsurveyȱ respondentsȱasȱinhibitingȱmigrantsȱfromȱusingȱformalȱtransferȱchannels.ȱ Furtherȱ empiricalȱ research,ȱ takingȱ thisȱ workȱ forward,ȱ couldȱ focusȱ onȱ examiningȱ whetherȱremittanceȬreceivingȱcountriesȱareȱimplementingȱpoliciesȱthatȱenableȱthemȱtoȱ maximizeȱtheȱdevelopmentalȱbenefitsȱassociatedȱwithȱremittanceȱinflows.ȱFurtherȱworkȱ inȱthisȱareaȱcouldȱalsoȱusefullyȱcontributeȱbyȱadvisingȱonȱhowȱcountriesȱmightȱdevelopȱ policiesȱ toȱ maximizeȱ theȱ developmentȱ benefitsȱ thatȱ potentiallyȱ couldȱ accrueȱ fromȱ remittanceȱ inflows,ȱ particularlyȱ inȱ theȱ contextȱ ofȱ theȱ rapidlyȱ changingȱ channelsȱ andȱ technologiesȱforȱremittanceȱtransfer.6ȱȱ

Notes
ȱ

ȱEvenȱwhereȱrevisionsȱtoȱdataȱcompilationȱmethodsȱimproveȱtheȱaccuracyȱofȱremittanceȱinflowsȱ and/orȱ outflowsȱ forȱ moreȱ recentȱ periodsȱ inȱ aȱ timeȱ series,ȱ however,ȱ theȱ comparabilityȱ ofȱ remittancesȱdataȱacrossȱaȱtimeȱseriesȱmayȱbeȱimpeded,ȱatȱleastȱforȱaȱtransitionȱperiod,ȱfollowingȱ revisionȱofȱcompilationȱmethods,ȱwhereȱitȱisȱnotȱpossibleȱtoȱreviseȱtheȱdataȱforȱearlierȱperiodsȱinȱ theȱtimeȱseriesȱinȱlineȱwithȱtheȱnewȱcompilationȱmethods.ȱȱ 2 ȱSeeȱIMFȱ(2009a)ȱandȱIMFȱ(2009b).ȱ 3 ȱOneȱforumȱthatȱisȱworkingȱwithȱgovernmentsȱandȱdevelopmentȱagenciesȱtoȱidentifyȱtheȱoptimumȱ regulatoryȱ frameworkȱ andȱ toȱ developȱ aȱ commercialȱ andȱ technicalȱ frameworkȱ toȱ enableȱ mobileȱ phoneȱservicesȱprovidersȱtoȱsetȱupȱmobileȱmoneyȱtransferȱservicesȱisȱtheȱMobileȱMoneyȱTransferȱ programȱ underȱ theȱ Groupeȱ Specialeȱ Mobileȱ Associationȱ (GSMA).ȱ Furtherȱ informationȱ onȱ theȱ workȱandȱaimsȱofȱthisȱprogramȱisȱavailableȱatȱitsȱwebsite:ȱhttp://216.239.213.7/mmt/index.asp.ȱ 4 ȱSee,ȱforȱexample,ȱOrozcoȱ(2002)ȱandȱRathaȱandȱRiedbergȱ(2005).ȱ 5 ȱSeeȱalsoȱIFADȱ(2007).ȱȱ 6 ȱ Theseȱ recommendationsȱ onȱ howȱ thisȱ workȱ couldȱ beȱ takenȱ forwardȱ wereȱ basedȱ onȱ commentsȱ providedȱbyȱtheȱCentralȱBankȱofȱtheȱRepublicȱofȱTurkey,ȱwhichȱprovidedȱinputȱforȱthisȱpaper’sȱ surveyȱonȱdataȱcollectionȱandȱregulationȱofȱcrossȬborderȱremittanceȱflows.ȱ
1

ȱ

Referencesȱ

Bankȱ forȱ Internationalȱ Settlementsȱ andȱ Worldȱ Bank,ȱ Generalȱ Principlesȱ forȱ Internationalȱ RemittanceȱServices,ȱBasel,ȱSwitzerland:ȱBankȱforȱInternationalȱSettlements,ȱ2007.ȱ Deȱ Lunaȱ Martinez,ȱ José.ȱ 2005.ȱ Workers’ȱ Remittancesȱ toȱ Developingȱ Countries:ȱ Aȱ Surveyȱ withȱ Centralȱ Banksȱ onȱ Selectedȱ Publicȱ Policyȱ Issues.ȱ Worldȱ Bankȱ Policyȱ Researchȱ WorkingȱPaperȱNo.ȱ3638.ȱWashington,ȱDC:ȱWorldȱBank.ȱ Internationalȱ Fundȱ forȱ Agriculturalȱ Development.ȱ 2007.ȱ Sendingȱ Moneyȱ Home:ȱ WorldwideȱRemittanceȱFlowsȱtoȱDevelopingȱandȱTransitionȱCountries.ȱRome:ȱIFAD.ȱ Internationalȱ Monetaryȱ Fund.ȱ 1993.ȱ Balanceȱ ofȱ Paymentsȱ andȱ Internationalȱ Investmentȱ PositionȱManual,ȱFifthȱEditionȱ(BPM5).ȱWashington,ȱDC:ȱIMF.ȱ ———.ȱ 2009a.ȱ Balanceȱ ofȱ Paymentsȱ andȱ Internationalȱ Investmentȱ Positionȱ Manual,ȱ Sixthȱ Editionȱ(BPM6).ȱWashington,ȱDC:ȱIMF.ȱ ———.ȱ 2009b.ȱ Internationalȱ Transactionsȱ inȱ Remittances:ȱ Guideȱ forȱ Compilersȱ andȱ Users.ȱ Washington,ȱDC:ȱIMFȱ Orozco,ȱ Manuel.ȱ 2002.ȱ Attractingȱ Remittances:ȱ Market,ȱ Moneyȱ andȱ Reducedȱ Costs.ȱ Washington,ȱDC:ȱInterȬAmericanȱDevelopmentȱBank.ȱ Ratha,ȱ Dilip.ȱ 2007.ȱ “Leveragingȱ Remittancesȱ forȱ Development.”ȱ Migrationȱ Policyȱ InstituteȱPolicyȱBrief.ȱȱ ———,ȱ andȱ J.ȱ Riedberg.ȱ 2005.ȱ “Onȱ Reducingȱ Remittanceȱ Costs.”ȱ Washington,ȱ DC:ȱ WorldȱBank.ȱ ———, Sanketȱ Mohapatra,ȱ andȱ Aniȱ Silwal.ȱ 2009.ȱ “Migrationȱ andȱ Developmentȱ Briefȱ 11.”ȱWashington,ȱDC:ȱWorldȱBank.ȱ Worldȱ Bank.ȱ 2005.ȱ “Economicȱ Implicationsȱ ofȱ Remittancesȱ andȱ Migration,”ȱ Globalȱ EconomicȱProspects.ȱWashington,ȱDC:ȱWorldȱBank.ȱ ȱ ȱ

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Appendixesȱ
ȱ ȱ ȱ ȱ ȱ

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Appendix 1. Survey Questionnaire: Focus on Remittance Inflows
Introduction and Outline
Thankȱ youȱ forȱ takingȱ theȱ timeȱ toȱ completeȱ ourȱ surveyȱ onȱ theȱ nationalȱ regulatoryȱ environmentȱ forȱ migrants’ȱ crossȬborderȱ remittanceȱ flows,ȱ monitoringȱ practices,ȱ andȱ migrantȱ crossȬborderȱ remittancesȱ data.ȱ Thisȱ surveyȱ isȱ partȱ ofȱ aȱ largerȱ crossȬcountryȱ dataȱ andȱ informationȱ collectionȱ exerciseȱ intendedȱ toȱ fillȱ theȱ knowledgeȱ gapȱ onȱ theȱ impactȱofȱmigrantȱremittancesȱonȱdevelopment.ȱTheȱfindingsȱfromȱthisȱsurvey,ȱwhichȱisȱ beingȱ sentȱ toȱ centralȱ banksȱ andȱ otherȱ relevantȱ nationalȱ authoritiesȱ worldwide,ȱ areȱ intendedȱ toȱ helpȱ informȱ futureȱ effortsȱ toȱ strengthenȱ theȱ capacityȱ ofȱ nationalȱ policyȱ makersȱ andȱ institutionsȱ toȱ analyzeȱ relevantȱ trendsȱ andȱ determinantsȱ ofȱ theseȱ capitalȱ flowsȱinȱorderȱtoȱenhanceȱtheirȱdevelopmentȱimpact.ȱ Theȱsurveyȱquestionnaireȱthatȱfollowsȱisȱstructuredȱinȱfiveȱmainȱsections,ȱfollowingȱ theȱ outlineȱ below.ȱ Pleaseȱ completeȱ allȱ ofȱ theȱ questionsȱ thatȱ areȱ relevantȱ toȱ yourȱ country’sȱparticularȱsituationȱasȱaȱrecipientȱand/orȱsourceȱofȱremittanceȱflows.ȱȱ ȱ SectionȱI.ȱRecentȱdataȱcollectedȱonȱremittanceȱinflowsȱ SectionȱII.ȱDataȱcollectionȱpractices:ȱRemittanceȱinflowsȱ SectionȱIII.ȱNationalȱregulatoryȱenvironmentȱforȱmigrantȱremittanceȱflowsȱ SectionȱIV.ȱFinancialȱinfrastructureȱsupportingȱcrossȬborderȱremittanceȱflowsȱ Sectionȱ V.ȱ Bestȱ Practices,ȱ Publicȱ Policyȱ Issues,ȱ Bilateralȱ Agreementsȱ forȱ Dataȱ andȱ TechnologyȱSharingȱ ȱ
Please return the completed questionnaire to the World Bank Group, to the attention of Mr. Dilip Ratha, Manager, Migration & Remittances Team, World Bank Group, 1818 H Street, NW, Washington, DC 20433, USA, Fax +1-202-522-3564, Email: Dratha@worldbank.org

ȱ
Nameȱofȱperson(s)ȱrespondingȱtoȱthisȱquestionnaire:ȱȱ PositionȱandȱDepartment/Division:ȱȱ Institutionȱandȱlocationȱ(city,ȱcountry):ȱȱ Phoneȱnumber:ȱȱ Emailȱaddress:ȱȱ Dateȱquestionnaireȱcompletedȱ(dd/mm/yyyy):ȱȱ Areȱ youȱ completingȱ thisȱ questionnaireȱ onȱ theȱ behalfȱ ofȱ anotherȱ colleague(s)?ȱ Ifȱ yes,ȱ pleaseȱ provideȱ theȱ name(s),ȱ position(s),ȱ department(s)ȱ andȱ contactȱ detailsȱ forȱ thatȱ colleague(s)ȱbelow.ȱ ȱ

ȱ

Migrant Remittance Flows: Findings from a Global Survey of Central Banks

27

I. Recent Data Collected on Remittance Inflows
Byȱcompilingȱavailableȱnationalȱdataȱonȱmigrantȱremittanceȱflows,ȱresponsesȱtoȱthisȱsetȱofȱquestionsȱ willȱimproveȱtheȱunderstandingȱofȱtheȱmagnitudeȱandȱcharacteristicsȱofȱremittanceȱflows,ȱwithȱaȱviewȱ toȱ generatingȱ informedȱ policyȱ recommendationsȱ thatȱ wouldȱ maximizeȱ theirȱ positiveȱ developmentȱ impact.ȱ

ȱ 1.ȱDoesȱyourȱinstitutionȱcollectȱdataȱonȱcrossȬborderȱremittanceȱinflows?ȱȱ
a. Yes b. No, it is another institution(s): please specify: If you checked No at left, skip to Section III, Question 32

ȱ 2.ȱAccordingȱtoȱyourȱestimates,ȱwhatȱisȱtheȱannualȱvolumeȱofȱcrossȬborderȱremittanceȱ inflowsȱtoȱyourȱcountryȱsinceȱ2005?ȱȱ ȱ Tableȱ1ȱ
i. Workers’ remittance inflows (US$) a) 2007 (forecast) b) 2006 c) 2005 Please also provide these data for earlier years if available: d) 2004 e) 2003 f) 2002 ii. Compensation of employees (US$) iii. Migrants’ transfers (US$) iv. Total (US$) v. Informal remittance inflows (US$)

ȱ 3.ȱAccordingȱtoȱyourȱmostȱrecentlyȱavailableȱestimatesȱforȱannualȱremittanceȱ inflows,ȱ pleaseȱlistȱtheȱtopȱtenȱsourceȱcountriesȱforȱcrossȬborderȱremittanceȱflowsȱtoȱyourȱcountryȱ byȱrankingȱfromȱ1ȱtoȱ10ȱinȱTableȱ2ȱbelow,ȱwithȱaȱrankȱofȱ1ȱgoingȱtoȱtheȱtopȱsourceȱcountryȱ forȱ remittanceȱ inflows.ȱ Ifȱdataȱareȱ available,ȱpleaseȱprovideȱestimatesȱ ofȱtheȱ amountȱ ofȱ theseȱannualȱremittanceȱinflowsȱbyȱsourceȱcountryȱinȱtheȱtable’sȱsecondȱcolumn.ȱȱ ȱ Tableȱ2ȱ
i. Top source countries (List as many as possible) 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) ii. Estimated amount of annual remittance inflows for most recently available year (US$) Specify year:

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4.ȱ Forȱ theȱ topȱ 10ȱ sourceȱ countriesȱ thatȱ youȱ listedȱ inȱ Questionȱ 3,ȱ pleaseȱ brieflyȱ noteȱ belowȱ whatȱ youȱ believeȱ toȱ beȱ theȱ mainȱ factor(s)ȱ drivingȱ remittanceȱ inflowsȱ fromȱ thisȱ country.ȱȱ ȱ Tableȱ3ȱ
i. Top source countries (List as many as possible) 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) ii. What are the main factor(s) driving remittance inflows from this country?

ȱ 5.ȱ Wouldȱ youȱ pleaseȱ provideȱ asȱ muchȱ ofȱ theȱ followingȱ dataȱ asȱ areȱ availableȱ onȱ remittanceȱinflowsȱforȱeachȱapplicableȱtransferȱinstrumentȱforȱtheȱmostȱrecentȱtwoȬyearȱ periodȱ inȱ Tableȱ 4?ȱ Pleaseȱ beȱ sureȱ toȱ specifyȱ theȱ actualȱ yearȱ (indicatingȱ whetherȱ itȱ isȱ calendarȱorȱfiscalȱyear).ȱPleaseȱindicateȱtheȱcurrencyȱofȱdenominationȱifȱotherȱthanȱU.S.ȱ dollars.ȱȱ ȱ Tableȱ4ȱ
Year 1 (specify year: ) Instrument to transfer cross-border remittance inflows a) Bank drafts b) Checks issued by banks abroad c) International money orders sent by post d) International money orders sent electronically e) Electronic wire via money transfer operators (for example, Money Gram, Western Union) f) Electronic fund transfers through correspondent banks g) Debit cards h) Pre-paid cards i) Money reported at airports/borders carried by relatives traveling to home country j) Money transfer by mobile phone k) Other, please specify: l) Total i. Number of transactions ii. Volume of transactions (US$) Year 2 (specify year: ) iii. Number of transactions iv. Volume of transactions (US$)

ȱ ȱ

Migrant Remittance Flows: Findings from a Global Survey of Central Banks

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6.ȱ Areȱ thereȱ particularȱ periodsȱ ofȱ theȱ yearȱ whenȱ remittanceȱ inflowsȱ tendȱ toȱ beȱ muchȱ largerȱorȱmuchȱsmaller?ȱȱ
a. Yes b. No

ȱ 7.ȱDoesȱyourȱcountryȱhaveȱguestȬworkerȱprograms?ȱ
a. Yes b. No If you checked Yes at left, please go to Q. 8 If you checked No at left, go to Q. 9

ȱ 8.ȱ Pleaseȱ indicateȱ belowȱ withȱ whichȱ country(ies)ȱ andȱ sector(s)ȱ ofȱ theȱ economyȱ theseȱ guestȱworkerȱprogramsȱareȱinȱeffect?ȱȱ
i. Country a) b) c) d) ii. Sector

ȱ 9.ȱIfȱapplicable:ȱDuringȱwhichȱseasons/periodsȱofȱtheȱyearȱareȱremittanceȱinflowsȱlikelyȱ toȱbeȱlarger?ȱȱ 10.ȱ Ifȱ applicable:ȱ Duringȱ whichȱ seasons/periodsȱ ofȱ theȱ yearȱ areȱ remittanceȱ inflowsȱ likelyȱtoȱbeȱsmaller?ȱȱ 11.ȱ Pleaseȱ completeȱ Tableȱ 5ȱ forȱ eachȱ typeȱ ofȱ institutionȱ listedȱ belowȱ thatȱ deliversȱ remittanceȱinflowsȱtoȱrecipientsȱinȱyourȱcountryȱatȱpresent.ȱPleaseȱprovideȱestimates,ȱifȱ necessary.ȱ Tableȱ5ȱ
i. Number of institutions a) Firms specialized in money transfers (Western Union, Money Gram, etc.) b) Private commercial banks c) State-owned banks d) Exchange bureaus e) Microfinance institutions f) Savings and loan institutions g) Credit unions and savings cooperatives h) Other financial institutions that receive and/or send remittances: please specify i) Post offices j) Mobile phone/telecoms service providers k) Other non-financial institutions that deliver remittances: please specify ii. Total number of branches iii. Number of branches in rural areas

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II. Data Collection Practices: Remittance inflows
Effectiveȱnationalȱdataȱcollectionȱandȱotherȱsystemsȱandȱproceduresȱforȱmonitoringȱmigrantȱremittanceȱ flowsȱhelpȱenableȱnationalȱpolicyȱmakersȱtoȱdeviseȱappropriateȱpoliciesȱthatȱwouldȱpromoteȱtheȱ beneficialȱdevelopmentȱeffectsȱofȱremittances.ȱThisȱsetȱofȱquestionsȱaimsȱtoȱtakeȱanȱinventoryȱofȱ nationalȱdataȱcollectionȱpracticesȱtoȱassessȱnationalȱcapacityȱinȱthisȱareaȱonȱaȱcrossȬcountryȱbasis.ȱȱ

ȱ 12.ȱWhichȱdivision(s)ȱwithinȱyourȱinstitutionȱcurrentlyȱis(are)ȱresponsibleȱforȱcollectingȱ dataȱonȱremittanceȱinflows?ȱȱ ȱ 13.ȱ Howȱ longȱ agoȱ didȱ yourȱ institutionȱ firstȱ beginȱ collectingȱ dataȱ andȱ informationȱ onȱ remittanceȱinflows?ȱȱ
a. Over the past year b. 2-5 years ago c. 6-10 years ago d. 11-20 years ago e. More than 20 years ago f. Other: please specify

ȱ 14.ȱ Howȱ oftenȱ doesȱ yourȱ institutionȱ collectȱ dataȱ andȱ informationȱ onȱ remittanceȱ inflows?ȱȱ
a. Monthly b. Quarterly c. Semi-annually d. Annually e. Occasionally f. Other: please specify

ȱ 15.ȱOtherȱthanȱchangesȱinȱdataȱcollectionȱfrequency,ȱhaveȱyourȱdataȱcollectionȱpracticesȱ forȱremittanceȱinflowsȱchangedȱinȱotherȱwaysȱoverȱtheȱpastȱfiveȱyears?ȱȱ
a. Yes b. No If you checked No at left, skip to Q. 17

ȱ 16.ȱ Pleaseȱ indicateȱ theȱ waysȱ inȱ whichȱ theseȱ practicesȱ haveȱ changed.ȱ Checkȱ allȱ thatȱ apply.ȱȱ
a. In terms of types of data compiled b. In terms of changes in sources of data c. Other Please specify how: Please specify how: Please specify:

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17.ȱDoȱyouȱhaveȱanyȱplansȱtoȱchangeȱtheȱcoverageȱofȱyourȱdataȱonȱremittancesȱ inflowsȱ and/orȱtheȱmethodologyȱusedȱtoȱmeasureȱremittances?ȱ
a. Yes b. No If you checked No at left, skip to Q. 19

ȱ 18.ȱPleaseȱdescribeȱyourȱcurrentȱorȱfutureȱinitiativesȱonȱthisȱmatter.ȱȱ ȱ 19.ȱPleaseȱprovideȱtheȱfollowingȱinformationȱonȱtheȱsourcesȱ ofȱyourȱ institution’sȱdataȱ onȱremittanceȱinflowsȱbyȱansweringȱtheȱapplicableȱquestionsȱinȱTableȱ7ȱbelow.ȱȱ Tableȱ7ȱ
iii. If applicable: How often must this source submit remittances inflows data to the relevant authority? (for example monthly, quarterly, annually, etc.)

ȱ
a) Firms specialized in money transfers (Western Union, Money Gram, etc.) b) Private commercial banks c) State-owned banks d) Exchange bureaus e) Microfinance institutions f) Savings and loan institutions g) Credit unions and savings cooperatives h) Other financial institutions that receive and/or send remittances: please specify i) Post offices j) Mobile phone/telecoms service providers k) Other non-financial institutions that deliver remittances: please specify l) Settlement and clearance agencies m) Information reported by migrants entering the country (at airports and other points of entry) n) Surveys of households o) Surveys on spending by tourists/visitors to your country (which include data collection on visiting nationals of your country now residing overseas and carrying remittances by hand) p) Other; please specify:

i. Source of data on remittance inflows (Yes/No)? If yes, since what year?

ii. If applicable: Do national regulations require this source to submit remittances inflows data to the relevant authority? (Y/N)

iv. If applicable: How does this source provide remittances inflows data to the relevant authority: by post, fax, email, other (please specify)?

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20.ȱ Whatȱ typesȱ ofȱ transactionsȱ doȱ youȱ recordȱ asȱ migrantȱ remittanceȱ inflows?ȱ Pleaseȱ checkȱallȱthatȱapply.ȱ
a. Bank draft payments b. Checks issued by banks in foreign jurisdictions c. International money orders sent by post d. International money orders sent electronically e. Electronic fund transfers through correspondent banks f. Electronic fund transfers from remitter’s bank directly to debit or prepaid card held by remittance recipient g. Use of pre-paid and debit cards for remittances at retail stores in your country h. Electronic transfer of remittances to the mobile phone of a remittance recipient in your country i. Withdrawals at automated teller machines (ATMs) in your country by remittance recipients using cards issued by foreign financial institutions j. Remittance inflows received by firms specialized in cross-border money transfer operations (Money Gram, Western Union) k. Money reported at airports/other points of entry to your country by migrants returning for visits l. Purchase of a home or other real estate in your country by migrants from your country residing overseas for the use of beneficiaries in your country m. Other: please specify

ȱ 21.ȱ Whichȱ methodsȱ areȱ usedȱ byȱ yourȱ institutionȱ inȱ collectingȱ dataȱ andȱ otherȱ informationȱonȱmigrantȱremittanceȱinflows?ȱPleaseȱcheckȱallȱthatȱapply.ȱ
a. Data collected from the banking system b. Reporting of data on these flows by nonbanks that provide remittance services c. Estimates of these flows using surveys d. Calculating migrants “propensity to remit” estimates

ȱ 22.ȱ Doesȱ theȱ dataȱ youȱ collectȱ allowȱ youȱ toȱ identifyȱ theȱ sourceȱ countryȱ ofȱ remittanceȱ inflows?ȱȱ
a. Yes b. No

ȱ 23.ȱ Doesȱ theȱ dataȱ youȱ collectȱ allowȱ youȱ toȱ identifyȱ theȱ numberȱ ofȱ remittanceȱ inflowȱ transactions?ȱȱ
a. Yes b. No

ȱ 24.ȱ Isȱ thereȱ someȱ meansȱ throughȱ whichȱ theȱ centralȱ bankȱ and/orȱ someȱ otherȱ relevantȱ nationalȱinstitutionȱestimatesȱremittanceȱinflowsȱthroughȱinformalȱchannels?ȱ
a. Yes b. No If you checked No at left, skip to Q. 27

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25.ȱ Howȱ haveȱ remittanceȱ inflowsȱ throughȱ informalȱ channelsȱ beenȱ estimated?ȱ Pleaseȱ checkȱallȱthatȱapply.ȱ
a. Data collection at airports and other points of entry on cash carried across your borders to remittance recipients residing in your country by visiting nationals now residing overseas. b. Data collection on cash carried across your borders by courier transport companies that is delivered to remittance recipients residing in your country c. Other; please specify

ȱ 26.ȱHaveȱremittanceȱinflowsȱthroughȱinformalȱchannelsȱbeenȱestimatedȱon:ȱ
a. A one-off basis b. An ad hoc basis c. Periodic basis d. Other If you checked at left, when? If you checked at left, when? If you checked at left, how frequently? If you checked at left, please specify:

ȱ 27.ȱ Asideȱ fromȱ yourȱ institution,ȱ areȱ thereȱ otherȱ institutionsȱ and/orȱ governmentȱ agenciesȱinȱyourȱcountryȱcollectingȱandȱcompilingȱnationalȱdataȱandȱotherȱinformationȱ fromȱmultipleȱsourcesȱonȱremittanceȱinflows?ȱ
a. Yes b. No If you checked No at left, skip to Section III, question 32

ȱ 28.ȱPleaseȱindicateȱwhichȱinstitutionsȱcompileȱtheseȱdataȱinȱyourȱcountry.ȱ
a. National statistics office/agency b. Ministry of Finance c. Ministry of Tourism d. Labor Ministry e. Other; please specify:

ȱ 29.ȱHowȱdoesȱtheȱcollectionȱofȱdataȱonȱcrossȬborderȱremittanceȱinflowsȱbyȱtheȱ institution(s)ȱindicatedȱaboveȱdifferȱfromȱthatȱcompiledȱbyȱyourȱinstitution?ȱȱ ȱ 30.ȱ Doesȱ yourȱ institutionȱ and/orȱ theȱ institution(s)ȱ indicatedȱ inȱ Q.ȱ 28ȱ haveȱ anȱ arrangementȱ inȱ placeȱ toȱ exchangeȱ dataȱ andȱ informationȱ onȱ remittanceȱ inflowsȱ onȱ aȱ regularȱbasis?ȱ
a. Yes b. No If you checked No at left, skip to Section III, question 32

ȱ 31.ȱPleaseȱindicateȱbelowȱhowȱoftenȱtheseȱdataȱareȱexchanged?ȱ
a. Monthly b. Quarterly c. Annually d. Other; please specify:

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III. National Regulatory Environment for Migrant Remittance Flows
A. Registration, supervisory and other regulatory requirements

32.ȱ Isȱ yourȱ institution(s)ȱ responsibleȱ forȱ regulatingȱ crossȬborderȱ migrantȱ remittanceȱ flowsȱinȱyourȱcountry?ȱ
a. Yes b. No, it is another institution(s): please specify If you checked No at left, skip to Section IV, question 82

ȱ 33.ȱ Accordingȱ toȱ yourȱ laws,ȱ whichȱ ofȱ theȱ institutionsȱ belowȱ inȱ Tableȱ 8ȱ canȱ receiveȱ and/orȱsendȱcrossȬborderȱremittanceȱflows?ȱȱ Tableȱ8ȱ
i. Receives remittance inflows from foreign sources intended for beneficiaries in your country? Indicate Yes/No a) Firms specialized in money transfers (Western Union, Money Gram, etc.) b) Private commercial banks c) State-owned banks d) Exchange bureaus e) Microfinance institutions f) Savings and loan institutions g) Credit unions and savings cooperatives h) Other financial institutions that deliver remittances; please specify: i) Post offices j) Mobile phone/telecoms service providers k) Other non-financial institutions that deliver remittances: specify: ii. If yes to Question ii, what is the national supervisory authority for this institution’s remittance service activities? iii. Sends remittance outflows from migrants in your country to beneficiaries abroad? Indicate Yes/No

iv. If yes to Question iii, what is the national supervisory authority for this institution’s remittance service activities?

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34.ȱ Forȱ eachȱ ofȱ theȱ typesȱ ofȱ institutionsȱ listedȱ inȱ Tableȱ 9ȱ thatȱ canȱ receiveȱ and/orȱ sendȱ crossȬborderȱ remittanceȱ flowsȱ (remittanceȱ serviceȱ providers),ȱ pleaseȱ answerȱ theȱ followingȱquestionsȱonȱregulatoryȱrequirementsȱrelatedȱtoȱtheȱprovisionȱofȱremittanceȱ services.ȱȱ Tableȱ9ȱ
i. Are these institutions legally obligated to have a formal partnership with a bank in order to receive remittance inflows? Indicate Yes//No. (Please answer for all applicable.) a) Firms specialized in money transfers (Western Union, Money Gram, etc.) b) Exchange bureaus c) Microfinance institutions d) Savings and loan institutions e) Credit unions and savings cooperatives f) Other financial institutions that receive and/or send remittances: please specify g) Post offices h) Mobile phone/telecoms service providers i) Other non-financial institutions that deliver remittances: please specify ii. Are these institutions legally obligated to have a formal partnership with a bank in order to send remittance outflows? Indicate Yes/No. (Please answer for all applicable.) iii. If applicable, what are the obligations and/or restrictions to which these institutions are subject under these partnerships with banks?

ȱ
B. Reporting requirements for remittance inflows

35.ȱ Doesȱ yourȱ institution’sȱ statuteȱ orȱ charterȱ stateȱ explicitlyȱ thatȱ monitoringȱ ofȱ remittanceȱinflowsȱisȱamongȱyourȱinstitution’sȱfunctions?ȱȱ
a. Yes b. No

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36.ȱ Areȱ thereȱ reportingȱ requirementsȱ withȱ whichȱ institutionsȱ thatȱ receiveȱ andȱ deliverȱ crossȬborderȱremittanceȱinflowsȱmustȱcomply?ȱȱ
a. Yes b. No If you checked No at left, skip to Section III.C, Question 45

ȱ 37.ȱIfȱyes,ȱtoȱQ.ȱ36,ȱpleaseȱprovideȱtheȱfollowingȱrequestedȱinformationȱinȱTableȱ10ȱonȱ reportingȱ requirementsȱ forȱ eachȱ typeȱ ofȱ institutionȱ inȱ yourȱ countryȱ thatȱ receivesȱ andȱ deliversȱremittanceȱinflows.ȱȱ Tableȱ10ȱ
i. Please mark with an “X” below if the institution is required to report remittance inflows to your institution. a) Firms specialized in money transfers (Western Union, Money Gram, etc.) b) Private commercial banks c) State-owned banks d) Exchange bureaus e) Microfinance institutions f) Savings and loan institutions g) Credit unions and savings cooperatives h) Other financial institutions that deliver remittances: please specify i) Post offices j) Mobile phone/telecoms service providers k) Other non-financial institutions that deliver remittances: please specify ii. Please list if there is another institution to which remittance inflows must be reported.

ȱ 38.ȱ Pleaseȱ indicateȱ belowȱ theȱ specificȱ typesȱ ofȱ informationȱ thatȱ mustȱ beȱ reportedȱ byȱ eachȱtypeȱofȱinstitutionȱthatȱisȱrequiredȱtoȱreportȱremittanceȱinflowsȱtoȱyourȱinstitution.ȱ
a. Remittance inflows transaction amounts b. Remittances “sending country” (that is, the country in which the remittances sender is based) c. Specific instrument used to transmit remittances to recipients in your country d. The mandatory information to be reported depends on (varies by) the type of remittances service provider e. Other: please specify

ȱ 39.ȱ Ifȱ youȱ checkedȱ d.ȱ inȱ Q.ȱ 38ȱ above,ȱ wouldȱ youȱ pleaseȱ specifyȱ howȱ theȱ type(s)ȱ ofȱ mandatoryȱ informationȱ onȱ remittanceȱ inflowsȱ reportedȱ toȱ yourȱ institutionȱ variesȱ byȱ typeȱofȱremittancesȱservicesȱprovider.ȱȱ ȱ ȱ ȱ

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40.ȱPleaseȱindicateȱwhetherȱremittanceȱserviceȱprovidersȱinȱyourȱcountryȱare:ȱ
a. Required to report each separate cross-border remittance inflows transaction b. Able to report multiple cross-border remittance inflows transactions periodically c. The answer depends on (varies by) the type of remittances service provider

ȱ 41.ȱ Ifȱ youȱ checkedȱ c.ȱ inȱ Q.ȱ 40ȱ above,ȱ wouldȱ youȱ pleaseȱ listȱ theȱ type(s)ȱ ofȱ remittanceȱ serviceȱprovidersȱinȱyourȱcountryȱthatȱareȱrequiredȱtoȱreportȱeachȱseparateȱcrossȬborderȱ remittanceȱinflowsȱtransactionȱ ȱȱ 42.ȱ Ifȱ youȱ checkedȱ b.ȱ orȱ c.ȱ inȱ Q.ȱ 40,ȱ wouldȱ youȱ pleaseȱ indicateȱ howȱ oftenȱ remittanceȱ serviceȱprovidersȱinȱyourȱcountryȱareȱrequiredȱtoȱmakeȱreportsȱofȱmultipleȱcrossȬborderȱ remittanceȱinflowsȱtransactions:ȱ
a. Daily b. Weekly c. Monthly d. Quarterly e. Other: please specify

ȱ 43.ȱ Doȱ theȱ reportingȱ requirementsȱ forȱ crossȬborderȱ remittanceȱ inflowsȱ transactionsȱ applyȱ onlyȱ atȱ specificȱ remittanceȱ thresholdsȱ (thatȱ is,ȱ aboveȱ aȱ specifiedȱ remittanceȱ amount)?ȱȱ
a. Yes b. No

ȱ 44.ȱIfȱyesȱtoȱQ.ȱ43,ȱwhatȱisȱthisȱthreshold?ȱȱ ȱ
C. Reporting requirements for remittance outflows

45.ȱ Doesȱ yourȱ institution’sȱ statuteȱ orȱ charterȱ stateȱ explicitlyȱ thatȱ monitoringȱ ofȱ remittanceȱoutflowsȱisȱamongȱyourȱinstitution’sȱfunctions?ȱȱ
a. Yes b. No

ȱ 46.ȱ Areȱ thereȱ reportingȱ requirementsȱ withȱ whichȱ institutionsȱ thatȱ sendȱ crossȬborderȱ remittanceȱoutflowsȱmustȱcomply?ȱȱ
a. Yes b. No If you checked No at left, skip to Question 55

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47.ȱIfȱyes,ȱtoȱQ.ȱ46,ȱpleaseȱprovideȱtheȱfollowingȱrequestedȱinformationȱinȱTableȱ11ȱonȱ reportingȱ requirementsȱ forȱ eachȱ typeȱ ofȱ institutionȱ inȱ yourȱ countryȱ thatȱ acceptsȱ remittancesȱ fromȱ sendersȱ inȱ yourȱ countryȱ andȱ sendsȱ theseȱ crossȬborderȱ remittanceȱ outflowsȱtoȱbeneficiariesȱabroad.ȱȱ Tableȱ11ȱ
i. Please mark with an “X” if the institution is required to report remittance outflows to your institution a. Firms specialized in money transfers (Western Union, Money Gram, etc.) b. Private commercial banks c. State-owned banks d. Exchange bureaus e. Microfinance institutions f. Savings and loan institutions g. Credit unions and savings cooperatives h. Other financial institutions that deliver remittances: please specify i. Post offices j. Mobile phone/telecoms service providers k. Other non-financial institutions that deliver remittances: please specify ii. Please list if there is another institution(s)/ government agency(ies) to which remittance outflows must be reported

ȱ 48.ȱ Pleaseȱ indicateȱ belowȱ theȱ specificȱ typesȱ ofȱ informationȱ thatȱ mustȱ beȱ reportedȱ byȱ eachȱ typeȱ ofȱ institutionȱ thatȱ isȱ requiredȱ toȱ reportȱ remittanceȱ outflowsȱ toȱ yourȱ institution.ȱ
a. Remittance outflows transaction amounts b. Remittances “destination country” (that is, the country in which the remittances recipient is based) c. Specific instrument used to transmit remittances by senders in your country d. The mandatory information to be reported depends on (varies by) the type of remittances service provider e. Other: please specify

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49.ȱ Ifȱ youȱ checkedȱ d.ȱ inȱ Q.ȱ 48ȱ above,ȱ wouldȱ youȱ pleaseȱ specifyȱ howȱ theȱ type(s)ȱ ofȱ mandatoryȱinformationȱonȱremittanceȱ outflowsȱreportedȱtoȱyourȱinstitutionȱvariesȱbyȱ typeȱofȱremittancesȱservicesȱprovider.ȱȱ ȱ 50.ȱPleaseȱindicateȱwhetherȱremittanceȱserviceȱprovidersȱinȱyourȱcountryȱare:ȱ
a. Required to report each separate cross-border remittance outflows transaction b. Are able to report multiple cross-border remittance outflows transactions periodically c. Options a. and b.: Answer depends on/varies by type of remittances service provider

ȱ 51.ȱ Ifȱ youȱ checkedȱ c.ȱ inȱ Q.ȱ 50ȱ above,ȱ wouldȱ youȱ pleaseȱ listȱ theȱ type(s)ȱ ofȱ remittanceȱ serviceȱprovidersȱinȱyourȱcountryȱthatȱareȱrequiredȱtoȱreportȱeachȱseparateȱcrossȬborderȱ remittanceȱoutflowsȱtransaction.ȱ ȱ 52.ȱ Ifȱ youȱ checkedȱ b.ȱ orȱ c.ȱ inȱ Q.ȱ 50,ȱ wouldȱ youȱ pleaseȱ indicateȱ howȱ oftenȱ remittanceȱ serviceȱprovidersȱinȱyourȱcountryȱareȱrequiredȱtoȱmakeȱperiodicȱreportsȱtoȱtheȱrelevantȱ nationalȱauthoritiesȱofȱmultipleȱcrossȬborderȱremittanceȱoutflowsȱtransactions:ȱ
a. Daily b. Weekly c. Monthly d. Quarterly e. Other: please specify

ȱ 53.ȱ Doȱ theȱ reportingȱ requirementsȱ forȱ crossȬborderȱ remittanceȱ outflowsȱ transactionsȱ applyȱ onlyȱ atȱ specificȱ remittanceȱ thresholdsȱ (thatȱ is,ȱ aboveȱ aȱ specifiedȱ remittanceȱ amount)?ȱȱ
a. Yes b. No

ȱ 54.ȱIfȱyesȱtoȱQ.ȱ53,ȱwhatȱis(are)ȱtheȱthresholdȱamount(s)?ȱȱ ȱ 55.ȱHaveȱthereȱbeenȱanyȱrecentȱorȱplannedȱregulatoryȱinitiativesȱtoȱseekȱtoȱharmonizeȱ theȱ reportingȱ requirementsȱ withȱ whichȱ crossȬborderȱ remittanceȱ serviceȱ providersȱ inȱ yourȱcountryȱmustȱcomply?ȱȱ
a. Yes b. No

ȱ 56.ȱ Ifȱ yesȱ toȱ Q.ȱ 55,ȱ wouldȱ youȱ pleaseȱ brieflyȱ describeȱ thoseȱ initiatives,ȱ theȱ type(s)ȱ ofȱ remittanceȱ serviceȱ providersȱ toȱ whichȱ theseȱ wouldȱ apply,ȱ andȱ theȱ timingȱ ofȱ theseȱ initiativesȱ(thatȱis,ȱspecifyȱdatesȱofȱimplementationȱifȱpossible)?ȱ ȱ

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D. National policies for anti-money laundering and combating the financing of terrorism

57.ȱ Isȱ yourȱ institutionȱ involvedȱ inȱ developingȱ and/orȱ implementingȱ nationalȱ policiesȱ forȱantiȬmoneyȱlaunderingȱandȱcombatingȱtheȱfinancingȱofȱterrorism?ȱ
a. Yes b. No If you checked No at left, skip to Section III.E, Question 65

ȱ 58.ȱ Whatȱ areȱ theȱ specificȱ sanctionsȱ thatȱ areȱ imposedȱ inȱ yourȱ countryȱ withȱ regardsȱ toȱ violationsȱofȱregulationsȱtoȱpreventȱmoneyȱlaunderingȱandȱtoȱcombatȱtheȱfinancingȱofȱ terrorism?ȱPleaseȱcheckȱallȱthatȱapply.ȱ
a. Fines for institutions and/or individuals who facilitate money laundering or the funding of terrorism b. Court-ordered freezing of funds involved in the particular transaction(s) c. Imprisonment d. Other: please specify

ȱ 59.ȱWhichȱentity(ies)ȱinȱyourȱcountriesȱenforce(s)ȱtheseȱsanctions?ȱ
a. Central bank b. Ministry of finance c. A separate national (or regional) authority set up and specifically charged with preventing money laundering d. Other: please specify

ȱ 60.ȱ Isȱ thereȱ aȱ wingȱ forȱ antiȬmoneyȱ laundering/combatingȱ theȱ financingȱ ofȱ terrorismȱ withinȱ yourȱ country’sȱ generalȱ lawȱ enforcementȱ authorities,ȱ whichȱ cooperatesȱ withȱ yourȱorȱotherȱnationalȱauthoritiesȱonȱcompliance/enforcementȱmatters?ȱȱ
a. Yes b. No

ȱ 61.ȱAreȱthereȱplansȱtoȱenhanceȱnationalȱregulationsȱandȱmechanismsȱtoȱpreventȱmoneyȱ launderingȱandȱtoȱcombatȱtheȱfinancingȱofȱterrorismȱinȱyourȱcountry?ȱȱ
a. Yes b. No

ȱ 62.ȱ Ifȱ yes,ȱ toȱ Q.ȱ 61,ȱ pleaseȱ describeȱ theseȱ plansȱ andȱ envisagedȱ date(s)ȱ forȱ implementation.ȱȱ ȱ ȱ ȱ

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63.ȱ Pleaseȱ provideȱ theȱ followingȱ furtherȱ informationȱ inȱ Tableȱ 12ȱ onȱ reportingȱ requirementsȱ andȱ associatedȱ documentationȱ forȱ eachȱ typeȱ ofȱ institutionȱ inȱ yourȱ countryȱthatȱreceivesȱand/orȱsendsȱcrossȬborderȱremittanceȱflows.ȱȱ Tableȱ12ȱ
iv. Are these remittance service providers obliged to file suspicious activity reports? If yes, to which national authority?

i. Are these remittance service providers obliged to file currency transaction reports? If yes, to which national authority? a. Firms specialized in money transfers (Western Union, Money Gram, etc.) b. Private commercial banks c. State-owned banks d. Exchange bureaus e. Microfinance institutions f. Savings and loan institutions g. Credit unions and savings cooperatives h. Other financial institutions that deliver remittances: please specify i. Post offices j. Mobile phone/telecoms service providers k. Other non-financial institutions that deliver remittances: please specify

ii. If yes to Q.i., is there an amount threshold for filing currency transaction reports? Please specify threshold

iii. Are there limits imposed on daily transaction amounts per customer? Please specify these limits

v. If yes to Q.iv., is there an amount threshold for filing suspicious transaction reports? Please specify threshold

ȱ 64.ȱ Whatȱ additionalȱ regulationsȱ andȱ mechanismsȱ areȱ currentlyȱ inȱ placeȱ toȱ preventȱ moneyȱlaunderingȱandȱtoȱcombatȱtheȱfinancingȱofȱterrorismȱinȱyourȱcountry?ȱ ȱ
E. Foreign exchange regulations and related costs

65.ȱ Isȱ yourȱ institutionȱ involvedȱ inȱ developingȱ and/orȱ implementingȱ nationalȱ foreignȱ exchangeȱregulations?ȱȱ
a. Yes b. No If you checked No at left, skip to Section IV, Question 82

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66.ȱIsȱitȱcompulsoryȱforȱrecipientsȱofȱremittanceȱ inflowsȱinȱyourȱcountryȱtoȱconvertȱtheȱ remittancesȱintoȱlocalȱcurrency?ȱȱ
a. Yes b. No

ȱ 67.ȱ Isȱ thereȱ aȱ ceilingȱ thatȱ appliesȱ specificallyȱ forȱ remittanceȱ inflowsȱ thatȱ areȱ notȱ convertedȱintoȱlocalȱcurrency?ȱȱ
a. Yes b. No

ȱ 68.ȱIfȱyesȱtoȱQ.ȱ67,ȱwhatȱisȱthisȱceilingȱandȱtheȱcorrespondingȱtimeȱperiodȱtoȱwhichȱitȱ applies?ȱȱ ȱ 69.ȱ Canȱ peopleȱ residingȱ inȱ yourȱ countryȱ sendȱ crossȬborderȱ remittancesȱ (remittanceȱ outflows)ȱdenominatedȱinȱforeignȱcurrencyȱtoȱrecipientsȱresidingȱabroad?ȱȱ
a. Yes b. No

ȱ 70.ȱ Isȱ thereȱ aȱ remittanceȱ ceilingȱ thatȱ appliesȱ specificallyȱ forȱ remittanceȱ outflowsȱ thatȱ areȱdenominatedȱinȱforeignȱcurrency?ȱȱ
a. Yes b. No

ȱ 71.ȱIfȱyesȱtoȱQ.ȱ70,ȱwhatȱisȱthisȱceilingȱandȱtheȱcorrespondingȱtimeȱperiodȱtoȱwhichȱitȱ applies?ȱȱ ȱ 72.ȱ Canȱ peopleȱ residingȱ inȱ yourȱ countryȱ sendȱ crossȬborderȱ remittancesȱ (remittanceȱ outflows)ȱdenominatedȱinȱlocalȱcurrencyȱtoȱrecipientsȱresidingȱabroad?ȱȱ
a. Yes b. No

ȱ 73.ȱ Isȱ thereȱ aȱ remittanceȱ ceilingȱ thatȱ appliesȱ specificallyȱ forȱ remittanceȱ outflowsȱ thatȱ areȱdenominatedȱinȱlocalȱcurrency?ȱȱ
a. Yes b. No

ȱ 74.ȱIfȱyesȱtoȱQ.ȱ73,ȱwhatȱisȱthisȱceilingȱandȱtheȱcorrespondingȱtimeȱperiodȱtoȱwhichȱitȱ applies?ȱȱ ȱ 75.ȱDoesȱtheȱcentralȱbankȱhaveȱanyȱlegalȱpowersȱtoȱissueȱregulationsȱtoȱlimitȱtheȱcostsȱ relatedȱtoȱtheȱexchangeȱrateȱtoȱbeȱusedȱforȱremittanceȱtransactions?ȱȱ
a. Yes b. No

ȱ 76.ȱ Ifȱ yesȱ toȱ Q.ȱ 75,ȱ hasȱ theȱ centralȱ bankȱ usedȱ theseȱ legalȱ powersȱ inȱ orderȱ toȱ lowerȱ currencyȱconversionȱcostsȱforȱremittancesȱinȱtheȱpastȱfiveȱyears?ȱȱ
a. Yes b. No

ȱ 77.ȱIfȱyesȱtoȱQ.ȱ75,ȱhowȱandȱwhen?ȱȱ ȱ ȱ

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78.ȱ Doesȱ yourȱ countryȱ allowȱ theȱ generalȱ publicȱ toȱ haveȱ depositȱ accountsȱ inȱ foreignȱ currencies?ȱȱ
a. Yes b. No

ȱ 79.ȱHowȱdoȱforeignȱexchangeȱregulationsȱrelatedȱtoȱcrossȬborderȱremittanceȱflowsȱvaryȱ forȱdifferentȱremittanceȱserviceȱprovidersȱinȱyourȱcountry?ȱPleaseȱanswerȱbelowȱforȱallȱ applicableȱremittanceȱserviceȱprovidersȱinȱyourȱcountry.ȱȱ Tableȱ13ȱ
i. Is this institution prohibited from handling foreign exchange transactions independently? Y/N a. Firms specialized in money transfers (Western Union, Money Gram, etc.) b. Private commercial banks c. State-owned banks d. Exchange bureaus e. Microfinance institutions f. Savings and loan institutions g. Credit unions and savings cooperatives h. Other financial institutions that deliver remittances: please specify i. Post offices j. Mobile phone/telecoms service providers k. Other non-financial institutions that deliver remittances: please specify ii. Does the relevant regulatory authority place limits on this institution's amount of foreign exchange holdings or remittance inflows? Y/N iii. Does the relevant regulatory authority place limits on this institution’s remittance outflows? Y/N

iv. If yes to Q. ii and/or iii , what are these limits?

ȱ 80.ȱDoesȱtheȱcentralȱbankȱhaveȱanyȱlegalȱpowersȱtoȱissueȱregulationsȱtoȱlimitȱtheȱcostsȱ relatedȱtoȱtheȱtransferȱand/orȱsendingȱofȱcrossȬborderȱremittances?ȱȱ
a. Yes b. No

ȱ 81.ȱIfȱyesȱtoȱQ.ȱ80,ȱhasȱtheȱcentralȱbankȱusedȱtheseȱlegalȱpowersȱinȱorderȱtoȱlowerȱtheseȱ costsȱinȱtheȱpastȱfiveȱyears?ȱȱ
a. Yes b. No If you checked yes at left, how and when?

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IV. Financial Infrastructure Supporting Cross-border Remittance Flows
Thisȱsetȱofȱquestionsȱisȱintendedȱtoȱexamineȱtheȱextentȱtoȱwhichȱcurrentȱnationalȱfinancialȱ infrastructureȱsupportsȱandȱfacilitatesȱcrossȬborderȱremittanceȱflowsȱtransmittedȱbyȱallȱtypesȱofȱ remittanceȱserviceȱproviders.ȱThisȱsectionȱisȱintendedȱtoȱtakeȱstockȱofȱrecentȱandȱupcomingȱchangesȱinȱ nationalȱpolicyȱthatȱwouldȱexpandȱtheȱaccessȱofȱvariousȱRSPsȱtoȱfinancialȱinfrastructure/systemsȱ and/orȱexpandȱtheȱoutreachȱofȱremittanceȱservicesȱtoȱremoteȱlocations.ȱ

ȱ 82.ȱ Pleaseȱ answerȱ theȱ questionsȱ inȱ Tableȱ 14ȱ aboutȱ accessȱ toȱ clearingȱ andȱ settlementȱ systemsȱbyȱtheȱremittanceȱserviceȱprovidersȱinȱyourȱcountry.ȱȱ Tableȱ14ȱ
i. Has access to the central bank’s clearing and settlement systems? Yes/No a. Firms specialized in money transfers (Western Union, Money Gram, etc.) b. Private commercial banks c. State-owned banks d. Exchange bureaus e. Microfinance institutions f. Savings and loan institutions g. Credit unions and savings cooperatives h. Other financial institutions that deliver remittances: please specify i. Post offices j. Mobile phone/telecommunications service providers k. Other nonfinancial institutions that deliver remittances: please specify ii. If applicable, are there plans to expand these institutions’ access to these systems? Yes/No iii. If applicable, what clearing and settlement systems do these institutions use?

ȱ 83.ȱAreȱthereȱanyȱrecentȱmovesȱorȱplansȱtoȱimplementȱaȱcommonȱpaymentȱplatformȱinȱ yourȱcountryȱand/orȱregion,ȱwhichȱwouldȱfacilitateȱremittanceȱtransfers?ȱȱ
a. Yes b. No

ȱ 84.ȱIfȱyesȱtoȱQ.ȱ83,ȱpleaseȱdescribeȱtheseȱinitiativesȱindicatingȱimplementationȱdates.ȱȱ ȱ 85.ȱIfȱyesȱtoȱQ.ȱ83,ȱare/willȱallȱATMȱandȱpointȱofȱsaleȱdevicesȱbeȱlinked/compatibleȱwithȱ theȱcommonȱpaymentȱplatform?ȱȱ
a. Yes b. No

ȱ

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86.ȱ Haveȱ thereȱ beenȱ anyȱ initiativesȱ byȱ financialȱ authoritiesȱ toȱ expandȱ theȱ outreachȱ ofȱ remittancesȱservicesȱtoȱruralȱareas/remoteȱlocationsȱinȱyourȱcountry?ȱ
a. Yes b. No

ȱ 87.ȱ Ifȱ yesȱ toȱ Q.ȱ 86,ȱ pleaseȱ brieflyȱ describeȱ theseȱ initiatives,ȱ indicatingȱ implementationȱ dates.ȱȱ

V. Best Practices, Public Policy Issues, Agreements for Data, and Technology Sharing
ByȱtakingȱaȱcrossȬcountryȱinventoryȱofȱnationalȱauthorities’ȱviewsȱonȱbestȱpracticesȱandȱimportantȱ publicȱpolicyȱissues,ȱasȱwellȱasȱtheȱextentȱtoȱwhichȱcountriesȱhaveȱnegotiatedȱdataȱand/orȱtechnologyȱ sharingȱagreementsȱtoȱimproveȱinformationȱand/orȱefficiencyȱofȱsystems,ȱthisȱsetȱofȱquestionsȱseeksȱtoȱ gaugeȱemergingȱpriorityȱpolicyȱissuesȱandȱpracticesȱforȱtheȱregionȱandȱtheȱextentȱtoȱwhichȱcountriesȱ makeȱuseȱofȱandȱbenefitȱfromȱcollaborativeȱagreementsȱinȱthisȱarea.ȱ

ȱ 88.ȱFromȱyourȱperspective,ȱareȱanyȱofȱtheȱfollowingȱareasȱinȱneedȱofȱimprovedȱpolicyȱ coordinationȱwithinȱyourȱcountry?ȱPleaseȱcheckȱallȱthatȱapply.ȱ
a. Eliminating inconsistencies within national policy vis-à-vis remittance flows. Please specify b. Better management of the tension between improving financial access and avoiding financial crime. c. Other: please specify

ȱ 89.ȱ Fromȱ yourȱ perspective,ȱ whatȱ areȱ theȱareasȱ thatȱ requireȱ moreȱ attentionȱ inȱ orderȱ toȱ makeȱtheȱtransferȱandȱdeliveryȱofȱremittancesȱmoreȱefficientȱandȱsecure?ȱPleaseȱselectȱ allȱapplicableȱareas.ȱ
a. Better statistics on remittances b. Better statistics and studies on migrants c. Increased competition among remittance service providers d. Delivery of remittances to remote areas e. New technologies and products for the provision of remittance services f. Financial integrity issues g. Other: please specify

ȱ 90.ȱInȱyourȱopinion,ȱareȱthereȱanyȱpracticesȱthatȱshouldȱbeȱprohibitedȱinȱorderȱtoȱmakeȱ theȱtransferȱandȱdeliveryȱofȱcrossȬborderȱremittancesȱmoreȱsecure?ȱȱ ȱ 91.ȱDoesȱyourȱcountryȱrestrictȱtheȱsendingȱofȱremittancesȱtoȱcertainȱcountries?ȱȱ
a. Yes b. No

ȱ 92.ȱIfȱapplicableȱtoȱwhichȱcountriesȱisȱtheȱsendingȱofȱremittancesȱrestricted?ȱȱ ȱ

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93.ȱ Areȱ thereȱ anyȱ formalȱ orȱ informalȱ arrangementsȱ ofȱ whichȱ youȱ areȱ awareȱ forȱ dataȬ sharingȱ onȱ crossȬborderȱ remittanceȱ flowsȱ betweenȱ institutionsȱ inȱ yourȱ countryȱ andȱ counterpartȱauthoritiesȱinȱotherȱcountries?ȱ
a. Yes b. No If you checked no at left, please skip to Q. 97

ȱ 94.ȱ Wouldȱ youȱ pleaseȱ specifyȱ withȱ whichȱ countries’ȱ nationalȱ authoritiesȱ yourȱ institutionȱshares/exchangesȱdataȱonȱcrossȬborderȱremittanceȱflows?ȱȱ
a) b) c) d)

ȱ 95.ȱWouldȱyouȱpleaseȱspecifyȱtheȱtype(s)ȱofȱremittanceȱdataȱshared?ȱȱ ȱ 96.ȱPleaseȱindicateȱbelowȱhowȱoftenȱtheseȱdataȱareȱexchanged.ȱ
a. Monthly b. Quarterly c. Annually d. Other; Please specify

ȱ 97.ȱAreȱthereȱanyȱarrangementsȱofȱwhichȱyouȱareȱawareȱbetweenȱnationalȱinstitutionsȱ andȱ theirȱ counterpartsȱ inȱ otherȱ countriesȱ thatȱ aimȱ toȱ improveȱ theȱ efficiencyȱ ofȱ crossȬ borderȱremittanceȱtransmissions?ȱȱ
a. Yes b. No . If you checked no at left, please skip to Q. 100

ȱ 98.ȱ Wouldȱ youȱ pleaseȱ specifyȱ withȱ whichȱ countries’ȱ institutionsȱ theseȱ arrangementsȱ haveȱbeenȱmade?ȱȱ
a) b) c) d) e)

ȱ 99.ȱWouldȱyouȱpleaseȱspecifyȱhowȱtheseȱarrangementsȱaimȱtoȱimproveȱtheȱefficiencyȱofȱ crossȬborderȱremittanceȱtransmissions?ȱ ȱ ȱ ȱ

ȱ

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100.ȱ Isȱ thereȱ anyȱ officeȱ inȱ yourȱ countryȱ responsibleȱ forȱ handlingȱ andȱ resolvingȱ complaintsȱofȱtheȱclientsȱofȱremittanceȱserviceȱprovidersȱ(thatȱis,ȱremittanceȱrecipientsȱ and/orȱsenders)ȱonȱissuesȱrelatedȱtoȱtheȱprovisionȱofȱcrossȬborderȱremittanceȱservices?ȱȱ
a) Yes b) No

ȱ 101.ȱIfȱyesȱtoȱQ.ȱ100,ȱwhatȱisȱtheȱoffice?ȱȱ ȱ 102.ȱIfȱthereȱisȱnoȱsuchȱentity,ȱhowȱareȱthoseȱissuesȱnormallyȱresolved?ȱ ȱ 103.ȱ Whatȱ mayȱ be,ȱ inȱ yourȱ opinion,ȱ inhibitingȱ migrantsȱ residingȱ abroadȱ fromȱ usingȱ formalȱ channelsȱ toȱ transferȱ crossȬborderȱ remittanceȱ toȱ recipientsȱ inȱ yourȱ country?ȱ Pleaseȱcheckȱallȱthatȱapply.ȱ
a. Sender’s lack of valid identification in host country b. No bank branch near residence of beneficiary c. Remittances recipient’s lack of access to bank accounts d. Mistrust of formal financial institutions e. Mistrust or lack of information about electronic transfers f. National payments systems’ lack of capacity to transfer remittances quickly g. Foreign exchange controls h. High costs of services i. Sending country’s tax policies on remittance outflows j. Your country’s tax policies on remittance inflows k. Other: please specify

ȱ 104.ȱ Inȱ yourȱ opinion,ȱ whatȱ needsȱ toȱ beȱ doneȱ inȱ yourȱ ownȱ countryȱ toȱ encourageȱ immigrantsȱ toȱ transferȱ remittancesȱ toȱ recipientsȱ abroadȱ throughȱ formalȱ channels?ȱ Pleaseȱcheckȱallȱthatȱapply.ȱ
a. Lift foreign exchange restrictions b. Allow remittance outflows to be denominated in any international currency and not just in local currency. c. Improve access to banking services of senders living in remote areas. d. Change senders’/public perception of formal financial institutions. e. Improve public awareness of innovative technologies available for remittance transfer. f. Improve postal service infrastructure to be able to deliver remittances to more locations g. Eliminate exclusivity contracts between money transfer operators and other institutions delivering remittances. h. Revise tax policies affecting remittances i. Other: please specify

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105.ȱWhatȱincentivesȱdoȱyouȱgrantȱmigrantsȱlivingȱabroadȱtoȱtransferȱtheirȱmoneyȱbackȱ toȱyourȱcountry?ȱ
a. Attractive investment options b. Tax breaks c. Matching funds for remittance-backed projects d. Other: Please specify

ȱ 106.ȱAreȱthereȱanyȱplansȱtoȱfosterȱtheȱuseȱofȱformalȱmechanismsȱtoȱtransferȱremittances,ȱ insteadȱofȱinformalȱchannels?ȱȱ
a) Yes b) No

ȱ 107.ȱIfȱyesȱtoȱQ.ȱ106,ȱpleaseȱdescribeȱtheseȱinitiatives:ȱȱ ȱ 108.ȱDoȱyouȱhaveȱanyȱplansȱtoȱmakeȱuseȱofȱtheȱamountȱofȱfundsȱyourȱcountryȱreceivesȱ inȱ remittancesȱ eachȱ yearȱ toȱ obtainȱ additionalȱ financingȱ inȱ theȱ localȱ orȱ internationalȱ marketsȱ (forȱ exampleȱ securitizingȱ futureȱ flowsȱ ofȱ remittances)?ȱ Ifȱ so,ȱ pleaseȱ describeȱ theseȱinitiatives.ȱ ȱ ȱ Thankȱyouȱforȱcompletingȱtheȱsurveyȱandȱparticipatingȱinȱourȱstudy.ȱ ȱ ȱ

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Appendix 2. Survey Questionnaire: Focus On Remittance Outflows
Introduction and Outline
Thankȱ youȱ forȱ takingȱ theȱ timeȱ toȱ completeȱ ourȱ surveyȱ onȱ theȱ nationalȱ regulatoryȱ environmentȱ forȱ migrants’ȱ crossȬborderȱ remittanceȱ flows,ȱ monitoringȱ practices,ȱ andȱ migrantȱ crossȬborderȱ remittancesȱ data.ȱ Thisȱ surveyȱ isȱ partȱ ofȱ aȱ largerȱ crossȬcountryȱ dataȱ andȱ informationȱ collectionȱ exerciseȱ intendedȱ toȱ fillȱ theȱ knowledgeȱ gapȱ onȱ theȱ impactȱofȱmigrantȱremittancesȱonȱdevelopment.ȱTheȱfindingsȱfromȱthisȱsurvey,ȱwhichȱisȱ beingȱ sentȱ toȱ centralȱ banksȱ andȱ otherȱ relevantȱ nationalȱ authoritiesȱ worldwide,ȱ areȱ intendedȱ toȱ helpȱ informȱ futureȱ effortsȱ toȱ strengthenȱ theȱ capacityȱ ofȱ nationalȱ policyȱ makersȱ andȱ institutionsȱ toȱ analyzeȱ relevantȱ trendsȱ andȱ determinantsȱ ofȱ theseȱ capitalȱ flowsȱinȱorderȱtoȱenhanceȱtheirȱdevelopmentȱimpact.ȱ Theȱsurveyȱquestionnaireȱthatȱfollowsȱisȱstructuredȱinȱfiveȱmainȱsections,ȱfollowingȱ theȱ outlineȱ below.ȱ Pleaseȱ completeȱ allȱ ofȱ theȱ questionsȱ thatȱ areȱ relevantȱ toȱ yourȱ country’sȱparticularȱsituationȱasȱaȱrecipientȱand/orȱsourceȱofȱremittanceȱflows.ȱȱ ȱ SectionȱI.ȱRecentȱdataȱcollectedȱonȱremittanceȱoutflowsȱ ȱ SectionȱII.ȱDataȱcollectionȱpractices:ȱRemittanceȱoutflowsȱ ȱ SectionȱIII.ȱNationalȱregulatoryȱenvironmentȱforȱmigrantȱremittanceȱflowsȱ ȱ SectionȱIV.ȱFinancialȱinfrastructureȱsupportingȱcrossȬborderȱremittanceȱflowsȱ ȱ SectionȱV.ȱBestȱPractices,ȱPublicȱPolicyȱIssues,ȱBilateralȱAgreementsȱforȱDataȱandȱ TechnologyȱSharingȱ ȱ
Please return the completed questionnaire to the World Bank Group, to the attention of Mr. Dilip Ratha, Manager, Migration & Remittances Team, World Bank Group, 1818 H Street, NW, Washington, DC 20433, USA, Fax +1-202-522-3564, Email: Dratha@worldbank.org

ȱ Nameȱofȱperson(s)ȱrespondingȱtoȱthisȱquestionnaire:ȱ ȱ ȱ ȱ ȱ ȱ PositionȱandȱDepartment/Division:ȱ ȱ ȱ ȱ ȱ ȱ Institutionȱandȱlocationȱ(city,ȱcountry):ȱ ȱ ȱ ȱ ȱ ȱ Phoneȱnumber:ȱ ȱ ȱ ȱ ȱ ȱ Emailȱaddress:ȱ ȱ ȱ ȱ ȱ ȱ Dateȱquestionnaireȱcompletedȱ(dd/mm/yyyy):ȱ ȱ ȱ ȱ ȱ ȱ Areȱ youȱ completingȱ thisȱ questionnaireȱ onȱ theȱ behalfȱ ofȱ anotherȱ colleague(s)?ȱ Ifȱ yes,ȱ pleaseȱ provideȱ theȱ name(s),ȱ position(s),ȱ department(s)ȱ andȱ contactȱ detailsȱ forȱ thatȱ colleague(s)ȱbelow.ȱȱ
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I.ȱRecentȱDataȱCollectedȱonȱRemittanceȱOutflowsȱȱ
Byȱcompilingȱavailableȱnationalȱdataȱonȱmigrantȱremittanceȱflows,ȱresponsesȱtoȱthisȱsetȱofȱquestionsȱwillȱ improveȱtheȱunderstandingȱofȱtheȱmagnitudeȱandȱcharacteristicsȱofȱremittanceȱflows,ȱwithȱaȱviewȱtoȱ generatingȱinformedȱpolicyȱrecommendationsȱthatȱwouldȱmaximizeȱtheirȱpositiveȱdevelopmentȱimpact.ȱ

ȱ 1.ȱDoesȱyourȱinstitutionȱcollectȱdataȱonȱcrossȬborderȱremittanceȱoutflows?ȱ
a. Yes b. No, it is another institution(s): please specify: If you checked No at left, skip to Section III, Question 32

ȱ 2.ȱAccordingȱtoȱyourȱestimates,ȱwhatȱisȱtheȱannualȱvolumeȱofȱcrossȬborderȱremittanceȱ outflowsȱfromȱyourȱcountryȱsinceȱ2005?ȱȱ Tableȱ1ȱ
iii. Migrants’ transfers (outflows by migrants employed in your economy) (US$)

i. Workers’ remittance outflows (US$)

ii. Compensation of employees (US$)

iv. Total (US$)

v. Informal remittance outflows (US$)

a) 2007 (forecast) b) 2006 c) 2005 Please also provide these data for earlier years if available: d) 2004 e) 2003 f) 2002

ȱ 3.ȱAccordingȱtoȱyourȱmostȱrecentlyȱavailableȱestimatesȱforȱannualȱremittanceȱ outflows,ȱ pleaseȱ listȱ theȱ topȱ destinationȱ countriesȱ forȱ crossȬborderȱ remittanceȱ flowsȱ sentȱ fromȱ yourȱcountryȱbyȱrankingȱfromȱ1ȱtoȱ10ȱinȱTableȱ2ȱbelow,ȱwithȱaȱrankȱofȱ1ȱgoingȱtoȱtheȱtopȱ destinationȱ countryȱ forȱ remittanceȱ outflows.ȱ Ifȱ dataȱ areȱ available,ȱ pleaseȱ provideȱ estimatesȱofȱtheȱamountȱofȱtheseȱannualȱremittanceȱoutflowsȱbyȱdestinationȱcountryȱinȱ theȱtable’sȱsecondȱcolumn.ȱȱ Tableȱ2ȱ
i. Top destination countries (List as many as possible) 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) ii. Estimated amount of annual remittance outflows for most recently available year (US$) Specify year:

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4.ȱForȱtheȱtopȱ10ȱdestinationȱcountriesȱthatȱyouȱlistedȱinȱQuestionȱ3,ȱpleaseȱbrieflyȱnoteȱ belowȱ whatȱ youȱ believeȱ toȱ beȱ theȱ mainȱ factor(s)ȱ drivingȱ remittanceȱ outflowsȱ toȱ thisȱ country.ȱȱ Tableȱ3ȱ
i. Top destination countries (List as many as possible) 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) ii. What are the main factor(s) driving remittance outflows to this country?

ȱ 5.ȱ Wouldȱ youȱ pleaseȱ provideȱ asȱ muchȱ ofȱ theȱ followingȱ dataȱ asȱ areȱ availableȱ onȱ remittanceȱ outflowsȱ forȱ eachȱ applicableȱ transferȱ instrumentȱ forȱ theȱ mostȱ recentȱ twoȬ yearȱperiodȱinȱTableȱ4?ȱPleaseȱbeȱsureȱtoȱspecifyȱtheȱactualȱyearȱ(indicatingȱwhetherȱitȱisȱ calendarȱorȱfiscalȱyear).ȱPleaseȱindicateȱtheȱcurrencyȱofȱdenominationȱifȱotherȱthanȱU.S.ȱ dollars.ȱȱ Tableȱ4ȱ
Year 1 (specify year:) Instrument to transfer cross-border remittance outflows a) Bank drafts b) Checks issued by banks c) International money orders sent by post d) International money orders sent electronically e) Electronic wire via money transfer operators (for example, Money Gram, Western Union)s f) Electronic fund transfers through correspondent banks g) Debit cards h) Pre-paid cards i) Money reported at airports/borders carried by relatives traveling to home country j) Money transfer by mobile phone k) Other, please specify l) Total i. Number of transactions ii. Volume of transactions (US$) Year 2 (specify year:) iii. Number of transactions iv. Volume of transactions (US$)

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6.ȱAreȱthereȱparticularȱperiodsȱofȱtheȱyearȱwhenȱremittanceȱ outflowsȱtendȱtoȱbeȱmuchȱ largerȱorȱmuchȱsmaller?ȱȱ
a. Yes b. No

ȱ 7.ȱDoesȱyourȱcountryȱemployȱmigrantsȱunderȱguestȬworkerȱprograms?ȱ
a. Yes b. No If you checked Yes at left, please go to Q. 8 If you checked No at left, go to Q. 9

ȱ 8.ȱ Pleaseȱ indicateȱ belowȱ withȱ whichȱ country(ies)ȱ andȱ sector(s)ȱ ofȱ theȱ economyȱ theseȱ guestȱworkerȱprogramsȱareȱinȱeffect?ȱȱ
i. Country a) b) c) d) ii. Sector

ȱ 9.ȱ Ifȱ applicable:ȱ Duringȱ whichȱ seasons/periodsȱ ofȱ theȱ yearȱ areȱ remittanceȱ outflowsȱ likelyȱtoȱbeȱlarger?ȱȱ ȱ ȱ ȱ ȱ ȱ ȱ 10.ȱ Ifȱ applicable:ȱ Duringȱ whichȱ seasons/periodsȱ ofȱ theȱ yearȱ areȱ remittanceȱ outflowsȱ likelyȱtoȱbeȱsmaller?ȱȱ ȱ ȱ ȱ ȱ ȱ ȱ 11.ȱ Pleaseȱ completeȱ Tableȱ 5ȱ forȱ eachȱ typeȱ ofȱ institutionȱ listedȱ belowȱ thatȱ transmitsȱ remittanceȱ outflowsȱ fromȱ sendersȱ inȱ yourȱ countryȱ toȱ recipientsȱ abroadȱ atȱ present.ȱ Pleaseȱprovideȱestimates,ȱifȱnecessary.ȱ Tableȱ5ȱ
i. Number of institutions a) Firms specialized in money transfers (Western Union, Money Gram, etc.) b) Private commercial banks c) State-owned banks d) Exchange bureaus e) Microfinance institutions f) Savings and loan institutions g) Credit unions and savings cooperatives h) Other financial institutions that transmit remittances: please specify i) Post offices j) Mobile phone/telecoms service providers k) Other non-financial institutions that transmit remittances: please specify ii. Total number of branches iii. Number of branches in rural areas

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II. Data Collection Practices: Remittance Outflows
Effectiveȱnationalȱdataȱcollectionȱandȱotherȱsystemsȱandȱproceduresȱforȱmonitoringȱmigrantȱremittanceȱ flowsȱhelpȱenableȱnationalȱpolicyȱmakersȱtoȱdeviseȱappropriateȱpoliciesȱthatȱwouldȱpromoteȱtheȱ beneficialȱdevelopmentȱeffectsȱofȱremittances.ȱThisȱsetȱofȱquestionsȱaimsȱtoȱtakeȱanȱinventoryȱofȱ nationalȱdataȱcollectionȱpracticesȱtoȱassessȱnationalȱcapacityȱinȱthisȱareaȱonȱaȱcrossȬcountryȱbasis.ȱȱ

ȱ 12.ȱWhichȱdivision(s)ȱwithinȱyourȱinstitutionȱcurrentlyȱis(are)ȱresponsibleȱforȱcollectingȱ dataȱonȱremittanceȱoutflows?ȱȱ ȱ ȱ ȱ ȱ ȱ ȱ 13.ȱ Howȱ longȱ agoȱ didȱ yourȱ institutionȱ firstȱ beginȱ collectingȱ dataȱ andȱ informationȱ onȱ remittanceȱoutflows?ȱ
a. Over the past year b. 2-5 years ago c. 6-10 years ago d. 11-20 years ago e. More than 20 years ago f. Other: please specify

ȱ 14.ȱ Howȱ oftenȱ doesȱ yourȱ institutionȱ collectȱ dataȱ andȱ informationȱ onȱ remittanceȱ outflows?ȱȱ
a. Monthly b. Quarterly c. Semi-annually d. Annually e. Occasionally f. Other: please specify

ȱ 15.ȱOtherȱthanȱchangesȱinȱdataȱcollectionȱfrequency,ȱhaveȱyourȱdataȱcollectionȱpracticesȱ forȱremittanceȱoutflowsȱchangedȱinȱotherȱwaysȱoverȱtheȱpastȱfiveȱyears?ȱȱ
a. Yes b. No If you checked No at left, skip to Q. 17

ȱ 16.ȱ Pleaseȱ indicateȱ theȱ waysȱ inȱ whichȱ theseȱ practicesȱ haveȱ changed.ȱ Checkȱ allȱ thatȱ apply.ȱȱ
a. In terms of types of data compiled b. In terms of changes in sources of data c. Other Please specify how: Please specify how: Please specify:

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17.ȱ Doȱ youȱ haveȱ anyȱ plansȱ toȱ changeȱ theȱ coverageȱ ofȱ yourȱ dataȱ onȱ remittancesȱ outflowsȱand/orȱtheȱmethodologyȱusedȱtoȱmeasureȱremittances?ȱ
a. Yes b. No If you checked No at left, skip to Q. 19

ȱ 18.ȱPleaseȱdescribeȱyourȱcurrentȱorȱfutureȱinitiativesȱonȱthisȱmatter.ȱȱ ȱ ȱ ȱ ȱ ȱ ȱ 19.ȱPleaseȱprovideȱtheȱfollowingȱinformationȱonȱtheȱsourcesȱ ofȱyourȱ institution’sȱdataȱ onȱremittanceȱoutflowsȱbyȱansweringȱtheȱapplicableȱquestionsȱinȱTableȱ7ȱbelow.ȱ Tableȱ7ȱ
i. Source of data on remittance outflows (Yes/No)? If yes, since what year? a) Firms specialized in money transfers (Western Union, Money Gram, etc.) b) Private commercial banks c) State-owned banks d) Exchange bureaus e) Microfinance institutions f) Savings and loan institutions g) Credit unions and savings cooperatives h) Other financial institutions that transmit remittances: please specify i) Post offices j) Mobile phone/telecoms service providers k) Other non-financial institutions that transmit remittances: please specify l) Settlement and clearance agencies m) Information reported by migrants exiting the country (at airports and other points of exit) n) Surveys of households o) Other; please specify: ii. If applicable: Do national regulations require this source to submit remittances outflows data to the relevant authority? (Y/N) iii. If applicable: How often must this source submit remittances outflows data to the relevant authority? (e.g. monthly, quarterly, annually, etc.) iv. If applicable: How does this source provide remittances outflows data to the relevant authority: by post, fax, email, other (please specify)?

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20.ȱ Whatȱ typesȱ ofȱ transactionsȱ doȱ youȱ recordȱ asȱ migrantȱ remittanceȱ outflows?ȱ Pleaseȱ checkȱallȱthatȱapply.ȱ
a. Bank draft payments b. Checks issued by banks c. International money orders sent by post d. International money orders sent electronically e. Electronic fund transfers through correspondent banks f. Electronic fund transfers from remitter’s bank in your country directly to debit or prepaid card held by remittance recipient g. Electronic transfer of remittances via mobile phone by a remitter in your country to a recipient located abroad h. Remittance outflows sent by firms specialized in cross-border money transfer operations (Money Gram, Western Union) i. Money reported at airports/other points of exit from your country, carried by immigrants on returning to their home countries for visits j. Purchase of a home or other real estate abroad by immigrants residing in your country for the use of beneficiaries abroad k. Other: please specify

ȱ 21.ȱ Whichȱ methodsȱ areȱ usedȱ byȱ yourȱ institutionȱ inȱ collectingȱ dataȱ andȱ otherȱ informationȱonȱmigrantȱremittanceȱoutflows?ȱPleaseȱcheckȱallȱthatȱapply.ȱ
a. Data collected from the banking system b. Reporting of data on these flows by nonbanks that provide remittance services c. Estimates of these flows using surveys d. Calculating migrants “propensity to remit” estimates

ȱ 22.ȱ Doesȱ theȱ dataȱ youȱ collectȱ allowȱ youȱ toȱ identifyȱ theȱ destinationȱ countryȱ forȱ remittanceȱoutflows?ȱȱ
a. Yes b. No

ȱ 23.ȱDoesȱtheȱdataȱyouȱcollectȱallowȱyouȱtoȱidentifyȱtheȱ numberȱofȱremittanceȱoutflowȱ transactions?ȱȱ
a. Yes b. No

ȱ 24.ȱ Isȱ thereȱ someȱ meansȱ throughȱ whichȱ theȱ centralȱ bankȱ and/orȱ someȱ otherȱ relevantȱ nationalȱinstitutionȱestimatesȱremittanceȱoutflowsȱthroughȱinformalȱchannels?ȱ
a. Yes b. No If you checked No at left, skip to Q. 27

ȱ 25.ȱHowȱhaveȱremittanceȱ outflowsȱthroughȱ informalȱchannelsȱbeenȱestimated?ȱPleaseȱ checkȱallȱthatȱapply.ȱ
a. Data collection at airports and other points of exit on cash carried across your borders to remittance recipients residing abroad by immigrants on returning to their home countries for visits. b. Data collection on cash carried across your borders by courier transport companies that is delivered to remittance recipients residing abroad c. Other; please specify

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26.ȱHaveȱremittanceȱoutflowsȱthroughȱinformalȱchannelsȱbeenȱestimatedȱon:ȱ
a. A one-off basis b. An ad hoc basis c. Periodic basis d. Other If you checked at left, when? If you checked at left, when? If you checked at left, how frequently? If you checked at left, please specify:

ȱ 27.ȱ Asideȱ fromȱ yourȱ institution,ȱ areȱ thereȱ otherȱ institutionsȱ and/orȱ governmentȱ agenciesȱinȱyourȱcountryȱcollectingȱandȱcompilingȱnationalȱdataȱandȱotherȱinformationȱ fromȱmultipleȱsourcesȱonȱremittanceȱoutflowsȱfromȱyourȱcountry?ȱ
a. Yes b. No If you checked No at left, skip to Section III, question 32

ȱ 28.ȱ Pleaseȱ indicateȱ whichȱ institutionsȱ inȱ yourȱ countryȱ compileȱ dataȱ onȱ remittanceȱ outflows.ȱ
a. National statistics office/agency b. Ministry of Finance c. Ministry of Tourism d. Labor Ministry e. Other; please specify:

ȱ 29.ȱ Howȱ doesȱ theȱ collectionȱ ofȱ dataȱ onȱ crossȬborderȱ remittanceȱ outflowsȱ byȱ theȱ institution(s)ȱindicatedȱaboveȱdifferȱfromȱthatȱcompiledȱbyȱyourȱinstitution?ȱȱ ȱ ȱ ȱ ȱ ȱ ȱ 30.ȱ Doesȱ yourȱ institutionȱ and/orȱ theȱ institution(s)ȱ indicatedȱ inȱ Q.ȱ 28ȱ haveȱ anȱ arrangementȱ inȱ placeȱ toȱ exchangeȱ dataȱ andȱ informationȱ onȱ remittanceȱ outflowsȱ onȱ aȱ regularȱbasis?ȱ
a. Yes b. No If you checked No at left, skip to Section III, question 32

ȱ 31.ȱPleaseȱindicateȱbelowȱhowȱoftenȱtheseȱdataȱareȱexchanged?ȱ
a. Monthly b. Quarterly c. Annually d. Other; please specify:

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III. National Regulatory Environment for Migrant Remittance Flows
A. Registration, supervisory and other regulatory requirements

32.ȱ Isȱ yourȱ institution(s)ȱ responsibleȱ forȱ regulatingȱ crossȬborderȱ migrantȱ remittanceȱ flowsȱinȱyourȱcountry?ȱ
a. Yes b. No, it is another institution(s): please specify If you checked No at left, skip to Section IV, question 82

ȱ 33.ȱ Accordingȱ toȱ yourȱ laws,ȱ whichȱ ofȱ theȱ institutionsȱ belowȱ inȱ Tableȱ 8ȱ canȱ receiveȱ and/orȱsendȱcrossȬborderȱremittanceȱflows?ȱȱ Tableȱ8ȱ
i. Receives remittance inflows from foreign sources intended for beneficiaries in your country? Indicate Yes/No a) Firms specialized in money transfers (Western Union, Money Gram, etc.) b) Private commercial banks c) State-owned banks d) Exchange bureaus e) Microfinance institutions f) Savings and loan institutions g) Credit unions and savings cooperatives h) Other financial institutions that deliver remittances; please specify: i) Post offices j) Mobile phone/telecoms service providers k) Other non-financial institutions that deliver remittances: specify: ii. If yes to Question i, what is the national supervisory authority for this institution’s remittance service activities? iii. Sends remittance outflows from migrants in your country to beneficiaries abroad? Indicate Yes/No

iv. If yes to Question iii, what is the national supervisory authority for this institution’s remittance service activities?

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34.ȱ Forȱ eachȱ ofȱ theȱ typesȱ ofȱ institutionsȱ listedȱ inȱ Tableȱ 9ȱ thatȱ canȱ receiveȱ and/orȱ sendȱ crossȬborderȱ remittanceȱ flowsȱ (remittanceȱ serviceȱ providers),ȱ pleaseȱ answerȱ theȱ followingȱquestionsȱonȱregulatoryȱrequirementsȱrelatedȱtoȱtheȱprovisionȱofȱremittanceȱ services.ȱȱ Tableȱ9ȱ
i. Are these institutions legally obligated to have a formal partnership with a bank in order to receive remittance inflows? Indicate Yes//No. (Please answer for all applicable.) a) Firms specialized in money transfers (Western Union, Money Gram, etc.) b) Exchange bureaus c) Microfinance institutions d) Savings and loan institutions e) Credit unions and savings cooperatives f) Other financial institutions that receive and/or send remittances: please specify g) Post offices h) Mobile phone/telecoms service providers i) Other non-financial institutions that deliver remittances: please specify ii. Are these institutions legally obligated to have a formal partnership with a bank in order to send remittance outflows? Indicate Yes/No. (Please answer for all applicable.) iii. If applicable, what are the obligations and/or restrictions to which these institutions are subject under these partnerships with banks?

ȱ
B. Reporting requirements for remittance inflows

35.ȱ Doesȱ yourȱ institution’sȱ statuteȱ orȱ charterȱ stateȱ explicitlyȱ thatȱ monitoringȱ ofȱ remittanceȱinflowsȱisȱamongȱyourȱinstitution’sȱfunctions?ȱȱ
a. Yes b. No

ȱ 36.ȱ Areȱ thereȱ reportingȱ requirementsȱ withȱ whichȱ institutionsȱ thatȱ receiveȱ andȱ deliverȱ crossȬborderȱremittanceȱinflowsȱmustȱcomply?ȱȱ
a. Yes b. No If you checked No at left, skip to Section III.C, Question 45

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37.ȱIfȱyes,ȱtoȱQ.ȱ36,ȱpleaseȱprovideȱtheȱfollowingȱrequestedȱinformationȱinȱTableȱ10ȱonȱ reportingȱ requirementsȱ forȱ eachȱ typeȱ ofȱ institutionȱ inȱ yourȱ countryȱ thatȱ receivesȱ andȱ deliversȱremittanceȱinflows.ȱȱ Tableȱ10ȱ
i. Please mark with an “X” below if the institution is required to report remittance inflows to your institution. a) Firms specialized in money transfers (Western Union, Money Gram, etc.) b) Private commercial banks c) State-owned banks d) Exchange bureaus e) Microfinance institutions f) Savings and loan institutions g) Credit unions and savings cooperatives h) Other financial institutions that deliver remittances: please specify i) Post offices j) Mobile phone/telecoms service providers k) Other non-financial institutions that deliver remittances: please specify

ii. Please list if there is another institution to which remittance inflows must be reported.

ȱ 38.ȱ Pleaseȱ indicateȱ belowȱ theȱ specificȱ typesȱ ofȱ informationȱ thatȱ mustȱ beȱ reportedȱ byȱ eachȱtypeȱofȱinstitutionȱthatȱisȱrequiredȱtoȱreportȱremittanceȱinflowsȱtoȱyourȱinstitution.ȱ
a. Remittance inflows transaction amounts b. Remittances “sending country” (that is, the country in which the remittances sender is based) c. Specific instrument used to transmit remittances to recipients in your country d. The mandatory information to be reported depends on (varies by) the type of remittances service provider e. Other: please specify

ȱ 39.ȱ Ifȱ youȱ checkedȱ d.ȱ inȱ Q.ȱ 38ȱ above,ȱ wouldȱ youȱ pleaseȱ specifyȱ howȱ theȱ type(s)ȱ ofȱ mandatoryȱ informationȱ onȱ remittanceȱ inflowsȱ reportedȱ toȱ yourȱ institutionȱ variesȱ byȱ typeȱofȱremittancesȱservicesȱprovider.ȱȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ

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40.ȱPleaseȱindicateȱwhetherȱremittanceȱserviceȱprovidersȱinȱyourȱcountryȱare:ȱ
a. Required to report each separate cross-border remittance inflows transaction b. Able to report multiple cross-border remittance inflows transactions periodically c. The answer depends on (varies by) the type of remittances service provider

ȱ 41.ȱ Ifȱ youȱ checkedȱ c.ȱ inȱ Q.ȱ 40ȱ above,ȱ wouldȱ youȱ pleaseȱ listȱ theȱ type(s)ȱ ofȱ remittanceȱ serviceȱprovidersȱinȱyourȱcountryȱthatȱareȱrequiredȱtoȱreportȱeachȱseparateȱcrossȬborderȱ remittanceȱinflowsȱtransaction.ȱȱ ȱ ȱ ȱ ȱ ȱ ȱ 42.ȱ Ifȱ youȱ checkedȱ b.ȱ orȱ c.ȱ inȱ Q.ȱ 40,ȱ wouldȱ youȱ pleaseȱ indicateȱ howȱ oftenȱ remittanceȱ serviceȱprovidersȱinȱyourȱcountryȱareȱrequiredȱtoȱmakeȱreportsȱofȱmultipleȱcrossȬborderȱ remittanceȱinflowsȱtransactions:ȱ
a. Daily b. Weekly c. Monthly d. Quarterly e. Other: please specify

ȱ 43.ȱ Doȱ theȱ reportingȱ requirementsȱ forȱ crossȬborderȱ remittanceȱ inflowsȱ transactionsȱ applyȱonlyȱatȱspecificȱremittanceȱthresholdsȱ(i.e.,ȱaboveȱaȱspecifiedȱremittanceȱamount)?ȱȱ
a. Yes b. No

ȱ 44.ȱIfȱyesȱtoȱQ.ȱ43,ȱwhatȱisȱthisȱthreshold?ȱȱ ȱ ȱ ȱ ȱ ȱ
C. Reporting requirements for remittance outflows

45.ȱ Doesȱ yourȱ institution’sȱ statuteȱ orȱ charterȱ stateȱ explicitlyȱ thatȱ monitoringȱ ofȱ remittanceȱoutflowsȱisȱamongȱyourȱinstitution’sȱfunctions?ȱȱ
a. Yes b. No If you checked No at left, skip to Section III.D, Question 57

ȱ 46.ȱ Areȱ thereȱ reportingȱ requirementsȱ withȱ whichȱ institutionsȱ thatȱ sendȱ crossȬborderȱ remittanceȱoutflowsȱmustȱcomply?ȱȱ
a. Yes b. No If you checked No at left, skip to Section III.D, Question 57

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47.ȱIfȱyes,ȱtoȱQ.ȱ46,ȱpleaseȱprovideȱtheȱfollowingȱrequestedȱinformationȱinȱTableȱ11ȱonȱ reportingȱ requirementsȱ forȱ eachȱ typeȱ ofȱ institutionȱ inȱ yourȱ countryȱ thatȱ acceptsȱ remittancesȱ fromȱ sendersȱ inȱ yourȱ countryȱ andȱ sendsȱ theseȱ crossȬborderȱ remittanceȱ outflowsȱtoȱbeneficiariesȱabroad.ȱȱ Tableȱ11ȱ
i. Please mark with an “X” if the institution is required to report remittance outflows to your institution a. Firms specialized in money transfers (Western Union, Money Gram, etc.) b. Private commercial banks c. State-owned banks d. Exchange bureaus e. Microfinance institutions f. Savings and loan institutions g. Credit unions and savings cooperatives h. Other financial institutions that deliver remittances: please specify i. Post offices j. Mobile phone/telecoms service providers k. Other non-financial institutions that deliver remittances: please specify ii. Please list if there is another institution(s)/ government agency(ies) to which remittance outflows must be reported

ȱ 48.ȱ Pleaseȱ indicateȱ belowȱ theȱ specificȱ typesȱ ofȱ informationȱ thatȱ mustȱ beȱ reportedȱ byȱ eachȱ typeȱ ofȱ institutionȱ thatȱ isȱ requiredȱ toȱ reportȱ remittanceȱ outflowsȱ toȱ yourȱ institution.ȱ
a. Remittance outflows transaction amounts b. Remittances “destination country” (that is, the country in which the remittances recipient is based) c. Specific instrument used to transmit remittances by senders in your country d. The mandatory information to be reported depends on (varies by) the type of remittances service provider e. Other: please specify

ȱ 49.ȱ Ifȱ youȱ checkedȱ d.ȱ inȱ Q.ȱ 48ȱ above,ȱ wouldȱ youȱ pleaseȱ specifyȱ howȱ theȱ type(s)ȱ ofȱ mandatoryȱinformationȱonȱremittanceȱ outflowsȱreportedȱtoȱyourȱinstitutionȱvariesȱbyȱ typeȱofȱremittancesȱservicesȱprovider.ȱȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ ȱ

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50.ȱPleaseȱindicateȱwhetherȱremittanceȱserviceȱprovidersȱinȱyourȱcountryȱare:ȱ
a. Required to report each separate cross-border remittance outflows transaction b. Are able to report multiple cross-border remittance outflows transactions periodically c. Options a. and b.: Answer depends on/varies by type of remittances service provider

ȱ 51.ȱ Ifȱ youȱ checkedȱ c.ȱ inȱ Q.ȱ 50ȱ above,ȱ wouldȱ youȱ pleaseȱ listȱ theȱ type(s)ȱ ofȱ remittanceȱ serviceȱprovidersȱinȱyourȱcountryȱthatȱareȱrequiredȱtoȱreportȱeachȱseparateȱcrossȬborderȱ remittanceȱoutflowsȱtransaction.ȱ ȱ 52.ȱ Ifȱ youȱ checkedȱ b.ȱ orȱ c.ȱ inȱ Q.ȱ 50,ȱ wouldȱ youȱ pleaseȱ indicateȱ howȱ oftenȱ remittanceȱ serviceȱprovidersȱinȱyourȱcountryȱareȱrequiredȱtoȱmakeȱperiodicȱreportsȱtoȱtheȱrelevantȱ nationalȱauthoritiesȱofȱmultipleȱcrossȬborderȱremittanceȱoutflowsȱtransactions:ȱ
a. Daily b. Weekly c. Monthly d. Quarterly e. Other: please specify

ȱ 53.ȱ Doȱ theȱ reportingȱ requirementsȱ forȱ crossȬborderȱ remittanceȱ outflowsȱ transactionsȱ applyȱonlyȱatȱspecificȱremittanceȱthresholdsȱ(i.e.,ȱaboveȱaȱspecifiedȱremittanceȱamount)?ȱȱ
a. Yes b. No

ȱ 54.ȱIfȱyesȱtoȱQ.ȱ53,ȱwhatȱis(are)ȱtheȱthresholdȱamount(s)?ȱȱ ȱ ȱ ȱ ȱ ȱȱ ȱ 55.ȱHaveȱthereȱbeenȱanyȱrecentȱorȱplannedȱregulatoryȱinitiativesȱtoȱseekȱtoȱharmonizeȱ theȱ reportingȱ requirementsȱ withȱ whichȱ crossȬborderȱ remittanceȱ serviceȱ providersȱ inȱ yourȱcountryȱmustȱcomply?ȱȱ
a. Yes b. No

ȱ 56.ȱ Ifȱ yesȱ toȱ Q.ȱ 55,ȱ wouldȱ youȱ pleaseȱ brieflyȱ describeȱ thoseȱ initiatives,ȱ theȱ type(s)ȱ ofȱ remittanceȱ serviceȱ providersȱ toȱ whichȱ theseȱ wouldȱ apply,ȱ andȱ theȱ timingȱ ofȱ theseȱ initiativesȱ(i.e.,ȱspecifyȱdatesȱofȱimplementationȱifȱpossible)?ȱ ȱ ȱ

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D. National policies for anti-money laundering and combating the financing of terrorism

57.ȱ Isȱ yourȱ institutionȱ involvedȱ inȱ developingȱ and/orȱ implementingȱ nationalȱ policiesȱ forȱantiȬmoneyȱlaunderingȱandȱcombatingȱtheȱfinancingȱofȱterrorism?ȱ
a. Yes b. No If you checked No at left, skip to Section III.E, Question 65

ȱ 58.ȱ Whatȱ areȱ theȱ specificȱ sanctionsȱ thatȱ areȱ imposedȱ inȱ yourȱ countryȱ withȱ regardsȱ toȱ violationsȱofȱregulationsȱtoȱpreventȱmoneyȱlaunderingȱandȱtoȱcombatȱtheȱfinancingȱofȱ terrorism?ȱPleaseȱcheckȱallȱthatȱapply.ȱ
a. Fines for institutions and/or individuals who facilitate money laundering or the funding of terrorism b. Court-ordered freezing of funds involved in the particular transaction(s) c. Imprisonment d. Other: please specify

ȱ 59.ȱWhichȱentity(ies)ȱinȱyourȱcountriesȱenforce(s)ȱtheseȱsanctions?ȱ
a. Central bank b. Ministry of finance c. A separate national (or regional) authority set up and specifically charged with preventing money laundering d. Other: please specify

ȱ 60.ȱ Isȱ thereȱ aȱ wingȱ forȱ antiȬmoneyȱ laundering/combatingȱ theȱ financingȱ ofȱ terrorismȱ withinȱ yourȱ country’sȱ generalȱ lawȱ enforcementȱ authorities,ȱ whichȱ cooperatesȱ withȱ yourȱorȱotherȱnationalȱauthoritiesȱonȱcompliance/enforcementȱmatters?ȱȱ
a. Yes b. No

ȱ 61.ȱAreȱthereȱplansȱtoȱenhanceȱnationalȱregulationsȱandȱmechanismsȱtoȱpreventȱmoneyȱ launderingȱandȱtoȱcombatȱtheȱfinancingȱofȱterrorismȱinȱyourȱcountry?ȱȱ
a. Yes b. No

ȱ 62.ȱ Ifȱ yes,ȱ toȱ Q.ȱ 61,ȱ pleaseȱ describeȱ theseȱ plansȱ andȱ envisagedȱ date(s)ȱ forȱ implementation.ȱȱ ȱȱȱȱȱȱ ȱ

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63.ȱ Pleaseȱ provideȱ theȱ followingȱ furtherȱ informationȱ inȱ Tableȱ 12ȱ onȱ reportingȱ requirementsȱ andȱ associatedȱ documentationȱ forȱ eachȱ typeȱ ofȱ institutionȱ inȱ yourȱ countryȱthatȱreceivesȱand/orȱsendsȱcrossȬborderȱremittanceȱflows.ȱȱ Tableȱ12ȱȱ
iv. Are these remittance service providers obliged to file suspicious activity reports? If yes, to which national authority?

i. Are these remittance service providers obliged to file currency transaction reports? If yes, to which national authority? a. Firms specialized in money transfers (Western Union, Money Gram, etc.) b. Private commercial banks c. State-owned banks d. Exchange bureaus e. Microfinance institutions f. Savings and loan institutions g. Credit unions and savings cooperatives h. Other financial institutions that deliver remittances: please specify i. Post offices j. Mobile phone/telecoms service providers k. Other non-financial institutions that deliver remittances: please specify

ii. If yes to Q.i., is there an amount threshold for filing currency transaction reports? Please specify threshold

iii. Are there limits imposed on daily transaction amounts per customer? Please specify these limits

v. If yes to Q.iv., is there an amount threshold for filing suspicious transaction reports? Please specify threshold

ȱ 64.ȱ Whatȱ additionalȱ regulationsȱ andȱ mechanismsȱ areȱ currentlyȱ inȱ placeȱ toȱ preventȱ moneyȱlaunderingȱandȱtoȱcombatȱtheȱfinancingȱofȱterrorismȱinȱyourȱcountry?ȱ ȱȱȱȱȱȱ ȱ ȱ

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E. Foreign exchange regulations and related costs

65.ȱ Isȱ yourȱ institutionȱ involvedȱ inȱ developingȱ and/orȱ implementingȱ nationalȱ foreignȱ exchangeȱregulations?ȱȱ
a. Yes b. No If you checked No at left, skip to Section IV, Question 82

ȱ 66.ȱIsȱitȱcompulsoryȱforȱrecipientsȱofȱremittanceȱ inflowsȱinȱyourȱcountryȱtoȱconvertȱtheȱ remittancesȱintoȱlocalȱcurrency?ȱȱ
a. Yes b. No

ȱ 67.ȱ Isȱ thereȱ aȱ ceilingȱ thatȱ appliesȱ specificallyȱ forȱ remittanceȱ inflowsȱ thatȱ areȱ notȱ convertedȱintoȱlocalȱcurrency?ȱȱ
a. Yes b. No

ȱ 68.ȱIfȱyesȱtoȱQ.ȱ67,ȱwhatȱisȱthisȱceilingȱandȱtheȱcorrespondingȱtimeȱperiodȱtoȱwhichȱitȱ applies?ȱȱ ȱ 69.ȱ Canȱ peopleȱ residingȱ inȱ yourȱ countryȱ sendȱ crossȬborderȱ remittancesȱ (remittanceȱ outflows)ȱdenominatedȱinȱforeignȱcurrencyȱtoȱrecipientsȱresidingȱabroad?ȱȱ
a. Yes b. No

ȱ 70.ȱ Isȱ thereȱ aȱ remittanceȱ ceilingȱ thatȱ appliesȱ specificallyȱ forȱ remittanceȱ outflowsȱ thatȱ areȱdenominatedȱinȱforeignȱcurrency?ȱȱ
a. Yes b. No

ȱ 71.ȱIfȱyesȱtoȱQ.ȱ70,ȱwhatȱisȱthisȱceilingȱandȱtheȱcorrespondingȱtimeȱperiodȱtoȱwhichȱitȱ applies?ȱȱ ȱ 72.ȱ Canȱ peopleȱ residingȱ inȱ yourȱ countryȱ sendȱ crossȬborderȱ remittancesȱ (remittanceȱ outflows)ȱdenominatedȱinȱlocalȱcurrencyȱtoȱrecipientsȱresidingȱabroad?ȱȱ
a. Yes b. No

ȱ 73.ȱ Isȱ thereȱ aȱ remittanceȱ ceilingȱ thatȱ appliesȱ specificallyȱ forȱ remittanceȱ outflowsȱ thatȱ areȱdenominatedȱinȱlocalȱcurrency?ȱȱ
a. Yes b. No

ȱ 74.ȱIfȱyesȱtoȱQ.ȱ73,ȱwhatȱisȱthisȱceilingȱandȱtheȱcorrespondingȱtimeȱperiodȱtoȱwhichȱitȱ applies?ȱȱ ȱ ȱ ȱ

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75.ȱDoesȱtheȱcentralȱbankȱhaveȱanyȱlegalȱpowersȱtoȱissueȱregulationsȱtoȱlimitȱtheȱcostsȱ relatedȱtoȱtheȱexchangeȱrateȱtoȱbeȱusedȱforȱremittanceȱtransactions?ȱȱ
a. Yes b. No

ȱ 76.ȱ Ifȱ yesȱ toȱ Q.ȱ 75,ȱ hasȱ theȱ centralȱ bankȱ usedȱ theseȱ legalȱ powersȱ inȱ orderȱ toȱ lowerȱ currencyȱconversionȱcostsȱforȱremittancesȱinȱtheȱpastȱfiveȱyears?ȱȱ
a. Yes b. No

ȱ 77.ȱIfȱyesȱtoȱQ.ȱ75,ȱhowȱandȱwhen?ȱȱ ȱ ȱ ȱ ȱ ȱ ȱ 78.ȱ Doesȱ yourȱ countryȱ allowȱ theȱ generalȱ publicȱ toȱ haveȱ depositȱ accountsȱ inȱ foreignȱ currencies?ȱȱ
a. Yes b. No

ȱ 79.ȱHowȱdoȱforeignȱexchangeȱregulationsȱrelatedȱtoȱcrossȬborderȱremittanceȱflowsȱvaryȱ forȱdifferentȱremittanceȱserviceȱprovidersȱinȱyourȱcountry?ȱPleaseȱanswerȱbelowȱforȱallȱ applicableȱremittanceȱserviceȱprovidersȱinȱyourȱcountry.ȱȱ Tableȱ13ȱ
i. Is this institution prohibited from handling foreign exchange transactions independently? Y/N a. Firms specialized in money transfers (Western Union, Money Gram, etc.) b. Private commercial banks c. State-owned banks d. Exchange bureaus e. Microfinance institutions f. Savings and loan institutions g. Credit unions and savings cooperatives h. Other financial institutions that deliver remittances: please specify i. Post offices j. Mobile phone/telecoms service providers k. Other non-financial institutions that deliver remittances: please specify ii. Does the relevant regulatory authority place limits on this institution's amount of foreign exchange holdings or remittance inflows? Y/N iii. Does the relevant regulatory authority place limits on this institution’s remittance outflows? Y/N

iv. If yes to Q. ii and/or iii , what are these limits?

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Migrant Remittance Flows: Findings from a Global Survey of Central Banks

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80.ȱDoesȱtheȱcentralȱbankȱhaveȱanyȱlegalȱpowersȱtoȱissueȱregulationsȱtoȱlimitȱtheȱcostsȱ relatedȱtoȱtheȱtransferȱand/orȱsendingȱofȱcrossȬborderȱremittances?ȱȱ
a. Yes b. No

ȱ 81.ȱIfȱyesȱtoȱQ.ȱ80,ȱhasȱtheȱcentralȱbankȱusedȱtheseȱlegalȱpowersȱinȱorderȱtoȱlowerȱtheseȱ costsȱinȱtheȱpastȱfiveȱyears?ȱȱ
a. Yes b. No If you checked yes at left, how and when?

ȱ

IV. Financial Infrastructure Supporting Cross-border Remittance Flows
Thisȱsetȱofȱquestionsȱisȱintendedȱtoȱexamineȱtheȱextentȱtoȱwhichȱcurrentȱnationalȱfinancialȱ infrastructureȱsupportsȱandȱfacilitatesȱcrossȬborderȱremittanceȱflowsȱtransmittedȱbyȱallȱtypesȱofȱ remittanceȱserviceȱproviders.ȱThisȱsectionȱisȱintendedȱtoȱtakeȱstockȱofȱrecentȱandȱupcomingȱchangesȱinȱ nationalȱpolicyȱthatȱwouldȱexpandȱtheȱaccessȱofȱvariousȱRSPsȱtoȱfinancialȱinfrastructure/systemsȱ and/orȱexpandȱtheȱoutreachȱofȱremittanceȱservicesȱtoȱremoteȱlocations.ȱ

ȱ 82.ȱ Pleaseȱ answerȱ theȱ questionsȱ inȱ Tableȱ 14ȱ aboutȱ accessȱ toȱ clearingȱ andȱ settlementȱ systemsȱbyȱtheȱremittanceȱserviceȱprovidersȱinȱyourȱcountry.ȱȱ Tableȱ14ȱ
i. Has access to the central bank’s clearing and settlement systems? Yes/No a. Firms specialized in money transfers (Western Union, Money Gram, etc.) b. Private commercial banks c. State-owned banks d. Exchange bureaus e. Microfinance institutions f. Savings and loan institutions g. Credit unions and savings cooperatives h. Other financial institutions that deliver remittances: please specify i. Post offices j. Mobile phone/telecommunications service providers k. Other nonfinancial institutions that deliver remittances: please specify ii. If applicable, are there plans to expand these institutions’ access to these systems? Yes/No iii. If applicable, what clearing and settlement systems do these institutions use?

ȱ

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83.ȱAreȱthereȱanyȱrecentȱmovesȱorȱplansȱtoȱimplementȱaȱcommonȱpaymentȱplatformȱinȱ yourȱcountryȱand/orȱregion,ȱwhichȱwouldȱfacilitateȱremittanceȱtransfers?ȱȱ
a. Yes b. No

ȱ 84.ȱIfȱyesȱtoȱQ.ȱ83,ȱpleaseȱdescribeȱtheseȱinitiativesȱindicatingȱimplementationȱdates.ȱȱ ȱ 85.ȱIfȱyesȱtoȱQ.ȱ83,ȱare/willȱallȱATMȱandȱpointȱofȱsaleȱdevicesȱbeȱlinked/compatibleȱwithȱ theȱcommonȱpaymentȱplatform?ȱȱ
a. Yes b. No

ȱ 86.ȱ Haveȱ thereȱ beenȱ anyȱ initiativesȱ byȱ financialȱ authoritiesȱ toȱ expandȱ theȱ outreachȱ ofȱ remittancesȱservicesȱtoȱruralȱareas/remoteȱlocationsȱinȱyourȱcountry?ȱ
a. Yes b. No

ȱ 87.ȱ Ifȱ yesȱ toȱ Q.ȱ 86,ȱ pleaseȱ brieflyȱ describeȱ theseȱ initiatives,ȱ indicatingȱ implementationȱ dates.ȱ ȱ

V. Best Practices, Public Policy Issues, Agreements for Data and Technology Sharing
Byȱtakingȱaȱcrossȱcountryȱinventoryȱofȱnationalȱauthorities’ȱviewsȱonȱbestȱpracticesȱandȱimportantȱ publicȱpolicyȱissues,ȱasȱwellȱasȱtheȱextentȱtoȱwhichȱcountriesȱhaveȱnegotiatedȱdataȱand/orȱtechnologyȱ sharingȱagreementsȱtoȱimproveȱinformationȱand/orȱefficiencyȱofȱsystems,ȱthisȱsetȱofȱquestionsȱseeksȱtoȱ gaugeȱemergingȱpriorityȱpolicyȱissuesȱandȱpracticesȱforȱtheȱregionȱandȱtheȱextentȱtoȱwhichȱcountriesȱ makeȱuseȱofȱandȱbenefitȱfromȱcollaborativeȱagreementsȱinȱthisȱarea.ȱ

ȱ 88.ȱFromȱyourȱperspective,ȱareȱanyȱofȱtheȱfollowingȱareasȱinȱneedȱofȱimprovedȱpolicyȱ coordinationȱwithinȱyourȱcountry?ȱPleaseȱcheckȱallȱthatȱapply.ȱ
a. Eliminating inconsistencies within national policy vis-à-vis remittance flows. Please specify b. Better management of the tension between improving financial access and avoiding financial crime. c. Other: please specify

ȱ 89.ȱ Fromȱ yourȱ perspective,ȱ whatȱ areȱ theȱareasȱ thatȱ requireȱ moreȱ attentionȱ inȱ orderȱ toȱ makeȱtheȱtransferȱandȱdeliveryȱofȱremittancesȱmoreȱefficientȱandȱsecure?ȱPleaseȱselectȱ allȱapplicableȱareas.ȱ
a. Better statistics on remittances b. Better statistics and studies on migrants c. Increased competition among remittance service providers d. Delivery of remittances to remote areas e. New technologies and products for the provision of remittance services f. Financial integrity issues g. Other: please specify

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Migrant Remittance Flows: Findings from a Global Survey of Central Banks

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90.ȱInȱyourȱopinion,ȱareȱthereȱanyȱpracticesȱthatȱshouldȱbeȱprohibitedȱinȱorderȱtoȱmakeȱ theȱtransferȱandȱdeliveryȱofȱcrossȬborderȱremittancesȱmoreȱsecure?ȱȱ ȱ ȱ ȱ ȱ ȱ ȱ 91.ȱDoesȱyourȱcountryȱrestrictȱtheȱsendingȱofȱremittancesȱtoȱcertainȱcountries?ȱȱ
a. Yes b. No

ȱ 92.ȱIfȱapplicableȱtoȱwhichȱcountriesȱisȱtheȱsendingȱofȱremittancesȱrestricted?ȱȱ ȱ 93.ȱ Areȱ thereȱ anyȱ formalȱ orȱ informalȱ arrangementsȱ ofȱ whichȱ youȱ areȱ awareȱ forȱ dataȬ sharingȱ onȱ crossȬborderȱ remittanceȱ flowsȱ betweenȱ institutionsȱ inȱ yourȱ countryȱ andȱ counterpartȱauthoritiesȱinȱotherȱcountries?ȱ
a. Yes b. No If you checked no at left, please skip to Q. 97

ȱ 94.ȱ Wouldȱ youȱ pleaseȱ specifyȱ withȱ whichȱ countries’ȱ nationalȱ authoritiesȱ yourȱ institutionȱshares/exchangesȱdataȱonȱcrossȬborderȱremittanceȱflows?ȱȱ
a) b) c) d)

ȱ 95.ȱWouldȱyouȱpleaseȱspecifyȱtheȱtype(s)ȱofȱremittanceȱdataȱshared?ȱȱ ȱ 96.ȱPleaseȱindicateȱbelowȱhowȱoftenȱtheseȱdataȱareȱexchanged.ȱ
a. Monthly b. Quarterly c. Annually d. Other; Please specify

ȱ 97.ȱAreȱthereȱanyȱarrangementsȱofȱwhichȱyouȱareȱawareȱbetweenȱnationalȱinstitutionsȱ andȱ theirȱ counterpartsȱ inȱ otherȱ countriesȱ thatȱ aimȱ toȱ improveȱ theȱ efficiencyȱ ofȱ crossȬ borderȱremittanceȱtransmissions?ȱȱ
a. Yes b. No . If you checked no at left, please skip to Q. 100

ȱ 98.ȱ Wouldȱ youȱ pleaseȱ specifyȱ withȱ whichȱ countries’ȱ institutionsȱ theseȱ arrangementsȱ haveȱbeenȱmade?ȱȱ
a) b) c) d) e)

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99.ȱWouldȱyouȱpleaseȱspecifyȱhowȱtheseȱarrangementsȱaimȱtoȱimproveȱtheȱefficiencyȱofȱ crossȬborderȱremittanceȱtransmissions?ȱ ȱ 100.ȱ Isȱ thereȱ anyȱ officeȱ inȱ yourȱ countryȱ responsibleȱ forȱ handlingȱ andȱ resolvingȱ complaintsȱofȱtheȱclientsȱofȱremittanceȱserviceȱprovidersȱ(thatȱis,ȱremittanceȱrecipientsȱ and/orȱsenders)ȱonȱissuesȱrelatedȱtoȱtheȱprovisionȱofȱcrossȬborderȱremittanceȱservices?ȱȱ
a) Yes b) No

ȱ 101.ȱIfȱyesȱtoȱQ.ȱ100,ȱwhatȱisȱtheȱoffice?ȱ ȱ ȱ ȱ ȱ ȱ ȱ 102.ȱIfȱthereȱisȱnoȱsuchȱentity,ȱhowȱareȱthoseȱissuesȱnormallyȱresolved?ȱ ȱ 103.ȱWhatȱmayȱbe,ȱinȱyourȱopinion,ȱinhibitingȱmigrantsȱresidingȱinȱyourȱcountryȱfromȱ usingȱformalȱchannelsȱtoȱtransferȱcrossȬborderȱremittancesȱtoȱrecipientsȱabroad?ȱPleaseȱ checkȱallȱthatȱapply.ȱ
a. Sender’s lack of valid identification b. No bank branch near residence of intended remittance beneficiary abroad c. Remittances sender’s lack of access to bank accounts d. Mistrust of formal financial institutions e. Mistrust or lack of information about electronic transfers f. National payments systems’ lack of capacity to transfer remittances quickly g. Foreign exchange controls h. High costs of services i. Remittance recipient country’s tax policies on remittance inflows j. Your country’s tax policies on remittance outflows k. Other: please specify

ȱ 104.ȱInȱyourȱopinion,ȱwhatȱneedsȱtoȱbeȱdoneȱinȱyourȱcountryȱtoȱencourageȱimmigrantsȱ toȱtransferȱremittancesȱtoȱrecipientsȱabroadȱthroughȱformalȱchannels?ȱPleaseȱcheckȱallȱ thatȱapply.ȱ
a. Lift foreign exchange restrictions b. Allow remittance outflows to be denominated in any international currency and not just in local currency. c. Improve access to banking services of senders living in remote areas. d. Change senders’/public perception of formal financial institutions. e. Improve public awareness of innovative technologies available for remittance transfer. f. Improve postal service infrastructure to be able to deliver remittances to more locations g. Eliminate exclusivity contracts between money transfer operators and other institutions delivering remittances. h. Revise tax policies affecting remittances i. Other: please specify

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105.ȱAreȱthereȱanyȱplansȱtoȱfosterȱtheȱuseȱofȱformalȱmechanismsȱtoȱtransferȱremittances,ȱ insteadȱofȱinformalȱchannels?ȱȱ
a. Yes b. No

ȱ 106.ȱIfȱyesȱtoȱQ.ȱ105,ȱpleaseȱdescribeȱtheseȱinitiatives:ȱȱ ȱ ȱ ȱ ȱ ȱ ȱ Thankȱyouȱforȱcompletingȱtheȱsurveyȱandȱparticipatingȱinȱourȱstudy.ȱ ȱ ȱ

ȱ

Appendix 3. Geographical Distribution of Responses to Survey of Central Banks1
(asȱofȱDecemberȱ2009)ȱ ȱ RemittanceȬinflowsȱquestionnaireȱ(versionȱ1)ȱ
East Asia and Pacific Fiji Indonesia Philippines Samoa Thailand Vanuatu Latin America and Caribbean Brazil Chile Colombia El Salvador Guatemala Haiti Honduras Jamaica Mexico Nicaragua Paraguay Peru Uruguay Middle East and North Africa Algeria Lebanon Morocco Syria Tunisia Highincome countries Barbados Cyprus Czech Republic Poland Slovak Republic Slovenia

Sub-Saharan Africa Botswana Malawi Burkina Faso Mali Burundi Cape Verde Congo, Rep. of Eritrea Ethiopia Gabon Ghana Guinea Guinea-Bissau Kenya Lesotho Madagascar Mauritius Mozambique Namibia Niger Nigeria Rwanda Senegal Sierra Leone Swaziland Tanzania Uganda Zambia

Europe and Central Asia Albania Armenia Azerbaijan Belarus Bosnia and Herzegovina Bulgaria Croatia Georgia Kyrgyz Republic Latvia Lithuania Moldova Romania Tajikistan Turkey

South Asia Afghanistan Bangladesh India Nepal

ȱ RemittanceȬoutflowsȱquestionnaireȱ(versionȱ2)ȱ
High-income OECD Australia Austria Belgium Canada Denmark Finland France Germany Greece Ireland High-income, non-OECD countries Aruba Bahamas Cayman Islands Hong Kong, China Israel Korea, Rep. of Kuwait Macao, China Oman Qatar San Marino Developing countries Russian Federation South Africa Venezuela, R.B. de

Italy Japan Luxembourg Netherlands New Zealand Norway Portugal Spain Sweden Switzerland United Kingdom

ȱ

Note
ȱ
1

ȱ Coversȱ theȱ 112ȱ countryȱ surveysȱ thatȱ wereȱ submittedȱ inȱ sufficientlyȱ completeȱ formȱ forȱ theȱ purposesȱofȱtheȱanalysisȱundertakenȱinȱthisȱpaper.ȱ

72

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Environmental Benefits Statement
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SolidȱWasteȱ

Waterȱ

NetȱGreenhouseȱ Gasesȱ

TotalȱEnergyȱ

289ȱ
*40ȱfeetȱinȱȱ heightȱandȱȱ 6–8ȱinchesȱinȱ diameterȱ

8,011ȱ
Poundsȱ

131,944
Gallonsȱ

27,396ȱ
PoundsȱCO2ȱ Equivalentȱ

92ȱmil.ȱ
BTUsȱ

ȱ

ȱ ȱ ȱ ȱ ȱ

ȱ

Migrant Remittance Flows: Findings from a Global Survey of Central Banks is part of the World Bank Working Paper series. These papers are published to communicate the results of the Bank’s ongoing research and to stimulate public discussion.
Drawing on the findings from responses to a survey conducted in 2008–09 from 114 central banks worldwide (of which 33 are in Africa), this paper aims to better understand how central banks and other national institutions regulate and collect data and other information on cross-border remittance flows. Findings indicate that, although the vast majority of countries, in both sending and receiving countries, collect data on remittances, and 43 percent of receiving countries estimate informal remittances, there is a need for more frequent and better coordinated data collection, both across national institutions and among different divisions within the same national institution, as well as between countries. Survey results also indicate that many new market entrants’ transfer activities are unregulated. Countries must take into account new channels and technologies, such as mobile phone service providers, in monitoring remittance flows. It will be important for national regulatory authorities to work closely with mobile telecoms network operators to strike the right regulatory balance, to better understand these new channels’ associated risks and fully tap their potential for fostering inexpensive, efficient remittance transfer services. The high cost of transfers was cited in the survey as the top factor inhibiting migrants from using formal channels. Many countries, particularly in Africa, have made progress in rendering exclusivity contracts illegal, which helps increase competitiveness and reduce transfer costs. But further policy reforms and initiatives are needed to address the high costs of remittances. The joint African Development Bank-World Bank Africa Migration Project and G-8 Global Remittances Working Group provided partial funding support for this study. World Bank Working Papers are available individually or on standing order. This World Bank Working Paper series is also available by subscription to the World Bank e-Library (www.worldbank.org/ newelibrary.

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