Seymour Fortescue 12 September 2008 Chair, UK Remittances Task Force Vienna AN INTERNATIONAL REMITTANCES CUSTOMER CHARTER

UK REMITTANCES TASK FORCE oFunded by Department for International Development oMembership from private sector oAims:  Greater transparency in UK remittance markets  More competitive remittance markets  Better informed consumers  Greater use of ‘formal’ channels

UK REMITTANCES TASK FORCE oWork has included:  Major research projects to review statistics, establish consumer preference and linkage of remittances to financial inclusion issues  DFID Remittances Information Library:  Input on regulatory issues.  Support for UK Money Transmitters Assocaition.

TOWARDS MORE TRANSPARENCY oConsumers are unsure about charges, exchange rates, speed, ID requirements, redress, etc. oHard to shop around.  Know Your Customer / Anti-Money Laundering  Financial institutions don’t make international payments for non-customers oVery difficult to compare end-to-end costs. owww.sendmoneyhome.orgwww.sendmoneyhome.org remittanceprices.worldbank.org and are a start.

THE TASK FORCE HAS DEVELOPED A CUSTOMER CHARTER Before agreeing to undertake a transaction we will provide you with :  An estimate of the total fee that you, the sender, will be charged by us for the transaction. If we believe that the person to whom you send the money may also have to pay a fee, then we will tell you.  An indication of the exchange rate that we will apply to your transaction, if requested. If a further exchange rate may be applied we will tell you to expect this.  Information on where the person should collect the money from and what they have to do, if it is to be made available in cash  An indication of when the funds will be available to the bank to which you are sending the money  Information on cancellation procedures and any charges for cancelling or amending a transaction

THE TASK FORCE HAS DEVELOPED A CUSTOMER CHARTER (2) Upon completion of a transaction we will provide you with the following (in writing):  A transaction reference number that is unique to your payment  Confirmation of the exact amount we are sending for you  The charges or fees that you have paid to us for this service  The estimated amount that your beneficiary will receive and the currency that the money will be paid/credited in.  The exchange rate that has been applied to your transaction  Information on where the person to whom you are sending the money can collect it or confirmation of the bank to which the money has been sent  When the money will be available for the person to whom you are sending it and whether this timescale is definite or the best estimate that we can make  In the case of cash collections, what the beneficiary has to do in order to collect the money.  The procedure to follow if you have a need to query this transaction. We will advise you how long it will take us to provide an answer or an update. .

WHAT CONSUMERS WANT ‘If I send £x to India, my family will receive y rupees.’

THE CHARTER GOES FURTHER THAN: oThe Payment Services Directive  More information  From autumn 2009  Covers intra-EU transactions only oThe UK Banking Code  More information

WHO SUBSCRIBES TO THE UK CHARTER? o MoneyGram (link with Post Office) o Chequepoint o Ria Financial o Coinstar o Several smaller players They cover about 50% of outlets. Western Union and UK banks have not joined.

HOW IS COMPLIANCE MONITORED? o Self-certification by means of annual statement of compliance o Mystery shopping o Complaints from the public There is no independent body to carry out monitoring and compliance.

EFFECTIVE SELF-REGULATION o Good code? 5/5 o Regular review? 4/5 o Adequate resources? 1/5 o Independent of industry? 3/5 o Coverage? 3/5 o Proper monitoring? 2/5 o Sanctions for non-compliance? 3/5 o Support from stakeholders? 4/5

THE UK REMITTANCES CHARTER Leading players in an important industry recognising that they can provide greater clarity for consumers by means of self- regulation.

AN INTERNATIONAL REMITTANCES CHARTER THE MINIMUM NEEDED:  Agree wording and arrangements for review  Create artwork in various languages for use in agencies and on websites  Record who claims to subscribe  Respond to queries from subscribers, media and customers

TWO EXTREMES 1. PROPER SELF-REGULATION  Contractual relationship between subscriber and central body  Compliance properly monitored  Sanctions for non-compliance  Consumers can rely on the Charter

TWO EXTREMES 2. AN ASPIRATIONAL DOCUMENT  Best endeavours to comply  No real monitoring or enforcement  No rights for consumers  Some use by media and consumer bodies  Display is open to abuse

QUESTIONS 1.Is there enthusiasm for an international remittances customer Charter? 2.What body could organise it? 3.Do we aim for an aspirational document or something stronger?