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​Remittance Markets: More court cases and higher costs due to Anti Money Laundering and Countering Financing of Terrorism (AML/CFT) Regulations

Sonia Plaza's picture
Last October, I wrote a blog on the closing of bank accounts of money transfer operators in Australia.  I reported that “Westpac would close the bank accounts of MTOs serving Somalia by the end of November.”

Closing of bank accounts of money transfer operators (MTOs) is raising remittance costs

Sonia Plaza's picture

As I mentioned in my previous blog, a renewed focus on Anti Money Laundering and Combatting the Financing of Terrorism (AML-CFT) regulations in Australia, the UK, and in the USA are impacting banks and MTOs.

Three effects on the remittance markets are observed. First, Banks stopped offering low cost remittance services. Second, banks closed accounts of MTOs. Two major banks, the Commonwealth Bank and the National Australia Bank, have closed already the accounts of MTOs in Australia. Recently, Westpac announced that it will close the bank accounts of MTOs serving Somalia by the end of this month. And third, small MTOs also closed since they could not any longer operate without bank accounts.  

Moving Past the Commodity Supercycle: Are We There Yet?

Otaviano Canuto's picture
Some analysts are predicting that the commodity price boom of the new millennium is something that has played itself out. Except for shale gas and its downward pressure on U.S. natural gas prices, however, natural resource-based commodity prices have remained high by historical records in the last few years, despite the feebleness of the recent global economic recovery.