Use formal means to send money- UK government urges workers
by Guneet S - February 12, 2010
United Kingdom, February 12: Foreign workers in Britain have been urged to use formal channels including foreign exchange agencies, banks and transfer companies for sending money to friends and families abroad.
Gareth Thomas, the International Development Minister, while launching this advice stated that at present, £2bn is sent using informal channels. This accounts for nearly one third of the total remittances to friends and families staying overseas.
Money sent to families is the main source of income for those living in some of the poorest countries of the world, stated Gareth. Poor families in several developing countries of the world depend on such money for their daily expenses including food and medical costs.
New Financial Services Authority (FSA) guidance named ‘Moneymadeclear’ is aimed at providing advice to workers sending money from Britain.
It was launched together by Sarah McCarthy Fry, the Exchequer Secretary to the Treasury and Gareth Thomas this Wednesday.
The booklet by the FSA provides details about six ways of sending cash abroad. This includes bank services and building society services.
The main countries that receive money from workers living in Britain include Nigeria, India, Ghana and Jamaica.
Dan Waters of FSA said that since there are hundreds of money transfer businesses in Britain, so, selecting any method could prove to be a difficult decision for customers.
Choosing Regulated Channels---
FSA has stated clearly that among the regulated channels for sending money overseas include
1. bank accounts
2. building society accounts
3. providers of debit and credit cards;
4.pre-paid cards.
Apart from these channels, FSA had also approved some other channels including foreign exchange brokers and money transfer companies in November 2009.
Hence, the money sending channels should either be registered with the FSA or authorized by the FSA.
The latest regulation by the FSA aims to ensure that those involved in running money sending agencies or companies do not have any criminal background so as to provide safety to the customers’ remittances.
The FSA leaflet provides all the details regarding costs of sending finances overseas to help save customers from any fluctuating money exchange rates.
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